{"id":259313,"date":"2023-05-27T10:50:16","date_gmt":"2023-05-27T08:50:16","guid":{"rendered":"https:\/\/climatescience.press\/?p=259313"},"modified":"2023-05-27T10:50:26","modified_gmt":"2023-05-27T08:50:26","slug":"new-energy-price-cap","status":"publish","type":"post","link":"https:\/\/climatescience.press\/?p=259313","title":{"rendered":"New Energy Price\u00a0Cap"},"content":{"rendered":"\n
\"\"
Gr\u00c3\u00bcne Energie<\/figcaption><\/figure>\n\n\n\n

<\/p>\n\n\n\n

From NOT A LOT OF PEOPLE KNOW THAT<\/a><\/p>\n\n\n\n

By Paul Homewood<\/p>\n\n\n\n

The new energy price cap is out, and as I predicted a few months ago, prices have fallen significantly, reflecting easing international gas prices<\/strong>:<\/p>\n\n\n\n

 <\/a><\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

<\/a><\/p>\n\n\n\n

<\/a><\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

<\/a><\/p>\n\n\n

\n
\"\"<\/figure>\n<\/div>\n\n
\n
\"\"<\/figure>\n<\/div>\n\n\n

<\/a><\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

<\/a><\/p>\n\n\n\n

https:\/\/www.ofgem.gov.uk\/publications\/customers-pay-less-energy-bills-summer<\/a><\/p>\n\n\n\n

The new cap has two implications:<\/p>\n\n\n\n

Offshore Wind<\/strong><\/p>\n\n\n\n

Whilst CfD strike prices for offshore wind were temporarily lower than wholesale market prices for a short time last year, they are once again considerably higher.<\/p>\n\n\n\n

So far this month, the average strike price is \u00a3179.74\/MWh, compare to a market price of \u00a385.98\/MWh. This equates to a full month subsidy of around \u00a3100 million.<\/p>\n\n\n\n

According to the OFGEM chart above, the market price assumed for the cap is about \u00a3140\/MWh \u2013 the exact figure is not provided as it is deemed proprietary! However their calculations are based on the 3-month historical average, and current wholesale prices have fallen since. According to Catalyst Energy<\/a>, for instance, day-ahead power prices fell to \u00a3100\/MWh at the end of April, and seem to have fallen further since.<\/p>\n\n\n\n

Although year-ahead prices are in the order of \u00a3130\/MWh, it would seem that the price cap will be cut again come August.<\/p>\n\n\n\n

All of this means, of course, that offshore wind will remain much more expensive than gas power, which usually sets the market price.<\/p>\n\n\n\n

Heat Pumps<\/strong><\/p>\n\n\n\n

The fall in both gas and power prices has also affected the relative running costs of heat pumps v gas boilers, in favour of the latter.<\/p>\n\n\n\n

Based on a typical domestic gas consumption of 15000 KWh a year, a gas boiler would cost \u00a31200 to run, Assuming boiler efficiency of 85% and heat pump coefficient of performance (COP) of 3.0, itself an optimistic assumption, the heat pump would cost \u00a31275 to run, even before considering the extra cost of providing hot water.<\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

The new energy price cap is out, and as I predicted a few months ago, prices have fallen significantly, reflecting easing international gas prices<\/p>\n","protected":false},"author":121246920,"featured_media":259321,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","_crdt_document":"","advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[1],"tags":[691818198,691818340],"class_list":{"0":"post-259313","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","6":"hentry","7":"category-uncategorized","8":"tag-heat-pumps","9":"tag-offshore-wind-farms","11":"fallback-thumbnail"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/05\/00renewables.jpg?fit=1689%2C1125&ssl=1","jetpack_likes_enabled":true,"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/paxLW1-15st","jetpack-related-posts":[{"id":262053,"url":"https:\/\/climatescience.press\/?p=262053","url_meta":{"origin":259313,"position":0},"title":"Wholesale Power Prices\u00a0Tumble","author":"uwe.roland.gross","date":"14\/06\/2023","format":false,"excerpt":"The new energy cap set by OFGEM last month, which takes effect from 1st July, is based on an average wholesale electricity price of about \u00a3150\/MWh \u2013 OFGEM refuse to release the actual figure. As this is calculated from Feb to April prices, it is already out of date, so\u2026","rel":"","context":"In \"Offshore Wind Power\"","block_context":{"text":"Offshore Wind Power","link":"https:\/\/climatescience.press\/?tag=offshore-wind-power"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/06\/0Ofgem.jpg?fit=1200%2C750&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/06\/0Ofgem.jpg?fit=1200%2C750&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/06\/0Ofgem.jpg?fit=1200%2C750&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/06\/0Ofgem.jpg?fit=1200%2C750&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/06\/0Ofgem.jpg?fit=1200%2C750&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":240106,"url":"https:\/\/climatescience.press\/?p=240106","url_meta":{"origin":259313,"position":1},"title":"Surprise! Australia\u2019s Green Transition Energy Price Caps are Causing Supply Side Chaos","author":"uwe.roland.gross","date":"17\/01\/2023","format":false,"excerpt":"Gas price caps haven\u2019t been silver bullet the Albanese government was hoping for\u00a0","rel":"","context":"Similar post","block_context":{"text":"Similar post","link":""},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/01\/image-749.png?fit=1024%2C1001&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/01\/image-749.png?fit=1024%2C1001&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/01\/image-749.png?fit=1024%2C1001&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/01\/image-749.png?fit=1024%2C1001&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":246555,"url":"https:\/\/climatescience.press\/?p=246555","url_meta":{"origin":259313,"position":2},"title":"Gas Power Is Cheaper Than Wind, Despite Carbon Brief\u2019s Claims","author":"uwe.roland.gross","date":"02\/03\/2023","format":false,"excerpt":"If we had more gas-fired power and less wind power, our energy bills would be lower, not higher.","rel":"","context":"Similar post","block_context":{"text":"Similar post","link":""},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/03\/image-84.png?fit=1200%2C630&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/03\/image-84.png?fit=1200%2C630&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/03\/image-84.png?fit=1200%2C630&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/03\/image-84.png?fit=1200%2C630&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/03\/image-84.png?fit=1200%2C630&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":428311,"url":"https:\/\/climatescience.press\/?p=428311","url_meta":{"origin":259313,"position":3},"title":"Government Claims Cost of Electricity is Falling. It\u2019s Not","author":"uwe.roland.gross","date":"27\/02\/2026","format":false,"excerpt":"The BBC is being particularly dishonest when it says \u201cprices are still about a third higher than before the war in Ukraine\u201d. The clear intention is to portray the Ukraine war as still keeping gas prices elevated.","rel":"","context":"In \"electricity prices\"","block_context":{"text":"electricity prices","link":"https:\/\/climatescience.press\/?tag=electricity-prices"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/02\/0Government-Claims-Cost-of-Electricity-is-Falling.-Its-Not3.png?fit=670%2C1200&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/02\/0Government-Claims-Cost-of-Electricity-is-Falling.-Its-Not3.png?fit=670%2C1200&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/02\/0Government-Claims-Cost-of-Electricity-is-Falling.-Its-Not3.png?fit=670%2C1200&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":231737,"url":"https:\/\/climatescience.press\/?p=231737","url_meta":{"origin":259313,"position":4},"title":"The energy crisis is a major threat to the world. Is there a way out?","author":"uwe.roland.gross","date":"30\/11\/2022","format":false,"excerpt":"How anti-Russian sanctions, a planned transition to greener fuels, and the West\u2019s short-sighted financial policies reaped a whirlwind","rel":"","context":"Similar post","block_context":{"text":"Similar post","link":""},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2022\/11\/image-1022.png?fit=1200%2C674&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2022\/11\/image-1022.png?fit=1200%2C674&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2022\/11\/image-1022.png?fit=1200%2C674&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2022\/11\/image-1022.png?fit=1200%2C674&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2022\/11\/image-1022.png?fit=1200%2C674&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":204352,"url":"https:\/\/climatescience.press\/?p=204352","url_meta":{"origin":259313,"position":5},"title":"Australian \u201cGreen Transition\u201d Electricity Grid on the Brink of Failure","author":"uwe.roland.gross","date":"14\/06\/2022","format":false,"excerpt":"\u201c\u2026 AEMO says \u2026 some gas and diesel generators were not interested in providing power under the price cap. It said it would take action to force them online. \u2026\u201d Remember, Winter has only just started in Australia. AEMO warns of widespread load shedding in Queensland and NSW supply crunchGiles\u2026","rel":"","context":"Similar post","block_context":{"text":"Similar post","link":""},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2022\/06\/00Backup-Generator-720x540-1.jpg?fit=720%2C540&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2022\/06\/00Backup-Generator-720x540-1.jpg?fit=720%2C540&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2022\/06\/00Backup-Generator-720x540-1.jpg?fit=720%2C540&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2022\/06\/00Backup-Generator-720x540-1.jpg?fit=720%2C540&ssl=1&resize=700%2C400 2x"},"classes":[]}],"_links":{"self":[{"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts\/259313","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/users\/121246920"}],"replies":[{"embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=259313"}],"version-history":[{"count":4,"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts\/259313\/revisions"}],"predecessor-version":[{"id":259323,"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts\/259313\/revisions\/259323"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/media\/259321"}],"wp:attachment":[{"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=259313"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=259313"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=259313"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}