{"id":353312,"date":"2024-12-05T18:30:12","date_gmt":"2024-12-05T17:30:12","guid":{"rendered":"https:\/\/climatescience.press\/?p=353312"},"modified":"2024-12-05T18:30:15","modified_gmt":"2024-12-05T17:30:15","slug":"why-are-uk-electricity-prices-so-high","status":"publish","type":"post","link":"https:\/\/climatescience.press\/?p=353312","title":{"rendered":"Why Are UK Electricity Prices So\u00a0High?"},"content":{"rendered":"\n
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<\/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

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As we are well aware, the UK has some of the highest electricity prices in the world.<\/p>\n\n\n\n

It is commonly claimed that the rapid price rise in recent years has been driven by the soaring price of natural gas. In fact, this is only a small part of the story.<\/p>\n\n\n\n

I have analysed OFGEM\u2019s energy price cap workings, comparing this quarter with Jan 2019, when the first cap was implemented.<\/p>\n\n\n\n

\u00a3pa<\/strong><\/td>Jan 2019<\/strong><\/td>Oct 2024<\/strong><\/td>Increase<\/strong><\/td><\/tr>
<\/td><\/td><\/td><\/td><\/tr>
Electricity Price Cap<\/td>683<\/td>1118<\/td>435<\/td><\/tr>
<\/td><\/td><\/td><\/td><\/tr>
Direct Fuel Costs<\/td>195<\/td>325<\/td>130<\/td><\/tr>
Other Costs<\/td>488<\/td>793<\/td>305<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

https:\/\/www.ofgem.gov.uk\/energy-policy-and-regulation\/policy-and-regulatory-programmes\/energy-price-cap-default-tariff-policy\/energy-price-cap-default-tariff-levels<\/a><\/p>\n\n\n\n

Direct Fuel Costs reflect the full cost of generation (ie not just fuel). ROCs are not mentioned, but I believe these are also included. What are not included are all of the other green levies, such as Cfds and Capacity Market payments.<\/p>\n\n\n\n

The increase in Direct Fuel Costs is 66%, not dissimilar to the increase in natural gas costs of 78% over the period.  But this is less than a third of the total cap increase. Most is the \u00a3305 rise in Other Costs.<\/p>\n\n\n\n

So what has happened since 2019?<\/p>\n\n\n\n

Here are a few things to consider:<\/p>\n\n\n\n