{"id":415661,"date":"2025-12-02T09:08:58","date_gmt":"2025-12-02T08:08:58","guid":{"rendered":"https:\/\/climatescience.press\/?p=415661"},"modified":"2025-12-02T09:09:01","modified_gmt":"2025-12-02T08:09:01","slug":"why-is-my-energy-bill-even-higher","status":"publish","type":"post","link":"https:\/\/climatescience.press\/?p=415661","title":{"rendered":"Why is My Energy Bill Even Higher?"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" width=\"723\" height=\"359\" data-attachment-id=\"415676\" data-permalink=\"https:\/\/climatescience.press\/?attachment_id=415676\" data-orig-file=\"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/0AQOlZg733GWtxN2YVl9PJ2t-8kH7ARs-5CCP2usg97ZvHdBJSBqplLL8xCSVE9j5iYqbLfJwWn0Zg_Wdc0vbzPK3WKbY6GBHpdM5fNTrDAl21vq7FTJdvWVC_tj7fpU-1.jpeg?fit=1856%2C922&amp;ssl=1\" data-orig-size=\"1856,922\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"0AQOlZg733GWtxN2YVl9PJ2t-8kH7ARs-5CCP2usg97ZvHdBJSBqplLL8xCSVE9j5iYqbLfJwWn0Zg_Wdc0vbzPK3WKbY6GBHpdM5fNTrDAl21vq7FTJdvWVC_tj7fpU (1)\" data-image-description=\"\" data-image-caption=\"\" data-large-file=\"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/0AQOlZg733GWtxN2YVl9PJ2t-8kH7ARs-5CCP2usg97ZvHdBJSBqplLL8xCSVE9j5iYqbLfJwWn0Zg_Wdc0vbzPK3WKbY6GBHpdM5fNTrDAl21vq7FTJdvWVC_tj7fpU-1.jpeg?fit=723%2C359&amp;ssl=1\" src=\"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/0AQOlZg733GWtxN2YVl9PJ2t-8kH7ARs-5CCP2usg97ZvHdBJSBqplLL8xCSVE9j5iYqbLfJwWn0Zg_Wdc0vbzPK3WKbY6GBHpdM5fNTrDAl21vq7FTJdvWVC_tj7fpU-1.jpeg?resize=723%2C359&#038;ssl=1\" alt=\"Offshore wind turbines operating in the ocean, with a platform structure visible in the foreground against a dark sky.\" class=\"wp-image-415676\" srcset=\"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/0AQOlZg733GWtxN2YVl9PJ2t-8kH7ARs-5CCP2usg97ZvHdBJSBqplLL8xCSVE9j5iYqbLfJwWn0Zg_Wdc0vbzPK3WKbY6GBHpdM5fNTrDAl21vq7FTJdvWVC_tj7fpU-1.jpeg?resize=1024%2C509&amp;ssl=1 1024w, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/0AQOlZg733GWtxN2YVl9PJ2t-8kH7ARs-5CCP2usg97ZvHdBJSBqplLL8xCSVE9j5iYqbLfJwWn0Zg_Wdc0vbzPK3WKbY6GBHpdM5fNTrDAl21vq7FTJdvWVC_tj7fpU-1.jpeg?resize=300%2C149&amp;ssl=1 300w, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/0AQOlZg733GWtxN2YVl9PJ2t-8kH7ARs-5CCP2usg97ZvHdBJSBqplLL8xCSVE9j5iYqbLfJwWn0Zg_Wdc0vbzPK3WKbY6GBHpdM5fNTrDAl21vq7FTJdvWVC_tj7fpU-1.jpeg?resize=768%2C382&amp;ssl=1 768w, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/0AQOlZg733GWtxN2YVl9PJ2t-8kH7ARs-5CCP2usg97ZvHdBJSBqplLL8xCSVE9j5iYqbLfJwWn0Zg_Wdc0vbzPK3WKbY6GBHpdM5fNTrDAl21vq7FTJdvWVC_tj7fpU-1.jpeg?resize=1536%2C763&amp;ssl=1 1536w, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/0AQOlZg733GWtxN2YVl9PJ2t-8kH7ARs-5CCP2usg97ZvHdBJSBqplLL8xCSVE9j5iYqbLfJwWn0Zg_Wdc0vbzPK3WKbY6GBHpdM5fNTrDAl21vq7FTJdvWVC_tj7fpU-1.jpeg?resize=640%2C318&amp;ssl=1 640w, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/0AQOlZg733GWtxN2YVl9PJ2t-8kH7ARs-5CCP2usg97ZvHdBJSBqplLL8xCSVE9j5iYqbLfJwWn0Zg_Wdc0vbzPK3WKbY6GBHpdM5fNTrDAl21vq7FTJdvWVC_tj7fpU-1.jpeg?resize=1200%2C596&amp;ssl=1 1200w, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/0AQOlZg733GWtxN2YVl9PJ2t-8kH7ARs-5CCP2usg97ZvHdBJSBqplLL8xCSVE9j5iYqbLfJwWn0Zg_Wdc0vbzPK3WKbY6GBHpdM5fNTrDAl21vq7FTJdvWVC_tj7fpU-1.jpeg?w=1856&amp;ssl=1 1856w, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/0AQOlZg733GWtxN2YVl9PJ2t-8kH7ARs-5CCP2usg97ZvHdBJSBqplLL8xCSVE9j5iYqbLfJwWn0Zg_Wdc0vbzPK3WKbY6GBHpdM5fNTrDAl21vq7FTJdvWVC_tj7fpU-1.jpeg?w=1446&amp;ssl=1 1446w\" sizes=\"auto, (max-width: 723px) 100vw, 723px\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/dailysceptic.org\/2025\/12\/01\/why-is-my-energy-bill-even-higher\/#comments\">The Daily Sceptic<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">By\u00a0<a href=\"https:\/\/dailysceptic.org\/author\/david-turver\/\">David Turver<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Ofgem recently announced the price cap for the first quarter of 2026 and, despite gas prices falling, the overall price cap has gone up. The Budget has made some small changes to reduce energy bills, but the change to Renewables Obligations is simply moving the cost around not tackling the root cause. I am giving a talk later this week on why our energy bills are so high, so it is time to update the figures on the real causes of high energy bills.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Energy Prices in Context<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The&nbsp;<a href=\"https:\/\/open.substack.com\/pub\/davidturver\/p\/uk-industrial-electricity-prices-highest\" target=\"_blank\" rel=\"noreferrer noopener\">latest data from the IEA<\/a>&nbsp;show the UK had the highest industrial electricity prices in the world in 2024 and the second highest domestic electricity prices, see Figure A.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" width=\"723\" height=\"234\" data-attachment-id=\"415663\" data-permalink=\"https:\/\/climatescience.press\/?attachment_id=415663\" data-orig-file=\"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-35.png?fit=4033%2C1308&amp;ssl=1\" data-orig-size=\"4033,1308\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"image\" data-image-description=\"\" data-image-caption=\"\" data-large-file=\"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-35.png?fit=723%2C234&amp;ssl=1\" src=\"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-35.png?resize=723%2C234&#038;ssl=1\" alt=\"Graph comparing international industrial and domestic electricity prices (p\/kWh) from 1998 to 2024 for various countries, including the UK, France, Germany, Canada, Korea, and the USA.\" class=\"wp-image-415663\" srcset=\"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-35.png?resize=1024%2C332&amp;ssl=1 1024w, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-35.png?resize=300%2C97&amp;ssl=1 300w, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-35.png?resize=768%2C249&amp;ssl=1 768w, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-35.png?resize=1536%2C498&amp;ssl=1 1536w, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-35.png?resize=2048%2C664&amp;ssl=1 2048w, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-35.png?resize=640%2C208&amp;ssl=1 640w, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-35.png?resize=1200%2C389&amp;ssl=1 1200w, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-35.png?w=1446&amp;ssl=1 1446w, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-35.png?w=2169&amp;ssl=1 2169w\" sizes=\"auto, (max-width: 723px) 100vw, 723px\" \/><figcaption class=\"wp-element-caption\">Figure A \u2013 International Gas and Electricity Prices (per IEA and DESNZ)<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">UK gas prices are competitive with continental Europe, so contrary to popular belief, it cannot be gas driving our high electricity prices. Although we should note that gas prices in the UK and EU are much higher than key competitors like the USA and Canada (see Figure B).<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" width=\"723\" height=\"460\" data-attachment-id=\"415665\" data-permalink=\"https:\/\/climatescience.press\/?attachment_id=415665\" data-orig-file=\"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-36.png?fit=2710%2C1722&amp;ssl=1\" data-orig-size=\"2710,1722\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"image\" data-image-description=\"\" data-image-caption=\"\" data-large-file=\"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-36.png?fit=723%2C460&amp;ssl=1\" src=\"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-36.png?resize=723%2C460&#038;ssl=1\" alt=\"Line graph depicting international industrial gas prices per kilowatt-hour from 1998 to 2024, showing price trends for countries including France, Germany, the UK, Canada, Korea, and the USA.\" class=\"wp-image-415665\" srcset=\"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-36.png?resize=1024%2C651&amp;ssl=1 1024w, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-36.png?resize=300%2C191&amp;ssl=1 300w, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-36.png?resize=768%2C488&amp;ssl=1 768w, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-36.png?resize=1536%2C976&amp;ssl=1 1536w, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-36.png?resize=2048%2C1301&amp;ssl=1 2048w, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-36.png?resize=640%2C407&amp;ssl=1 640w, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-36.png?resize=1200%2C763&amp;ssl=1 1200w, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-36.png?w=1446&amp;ssl=1 1446w, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-36.png?w=2169&amp;ssl=1 2169w\" sizes=\"auto, (max-width: 723px) 100vw, 723px\" \/><figcaption class=\"wp-element-caption\">Figure B \u2013 International Industrial Gas Prices per IEA and DESNZ (p per kWh)<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">More recent data for the first half of 2025 for EU countries plus the UK show a similar story. High energy prices represent an existential threat to the economy, so it is vital that we properly understand the causes of high prices so we can formulate the right policy responses.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Role of Gas<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It is true that the cost of gas sets the wholesale electricity price most of the time. However, this is not the whole story. According to&nbsp;<a href=\"https:\/\/www.gov.uk\/government\/statistics\/electricity-chapter-5-digest-of-united-kingdom-energy-statistics-dukes\" target=\"_blank\" rel=\"noreferrer noopener\">DUKES (Table 5.6A)<\/a>, in 2024 we used 178.8 TWh of gas to produce electricity. According to&nbsp;<a href=\"https:\/\/www.tradingview.com\/chart\/1JROVnSa\/?symbol=gwm1%21\" target=\"_blank\" rel=\"noreferrer noopener\"><em>TradingView<\/em><\/a>, the average price of gas in 2024 was 89.67p per therm. Working through the arithmetic, this gas would have cost us about \u00a35.5 billion. Remember that number when we start looking at the cost of renewables subsidies.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Carbon Taxes<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The price of gas-fired electricity is inflated by the addition of carbon taxes in the form of the Carbon Price Support Mechanism (CPS) and the Emissions Trading Scheme (ETS) \u2013 the latter is not strictly a Carbon Tax but nevertheless is an extra cost. As shown in Figure C,&nbsp;<a href=\"https:\/\/ember-energy.org\/data\/european-electricity-prices-and-costs\/\" target=\"_blank\" rel=\"noreferrer noopener\">Ember now produces<\/a>&nbsp;an interesting chart breaking down the fuel costs and carbon costs of gas-fired electricity.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" width=\"723\" height=\"431\" data-attachment-id=\"415666\" data-permalink=\"https:\/\/climatescience.press\/?attachment_id=415666\" data-orig-file=\"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-37.png?fit=1003%2C598&amp;ssl=1\" data-orig-size=\"1003,598\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"image\" data-image-description=\"\" data-image-caption=\"\" data-large-file=\"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-37.png?fit=723%2C431&amp;ssl=1\" src=\"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-37.png?resize=723%2C431&#038;ssl=1\" alt=\"A line graph illustrating the impact of gas costs on electricity prices in the UK, showing electricity price, fuel cost, and carbon cost over time from January 2018 to October 2025.\" class=\"wp-image-415666\" srcset=\"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-37.png?w=1003&amp;ssl=1 1003w, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-37.png?resize=300%2C179&amp;ssl=1 300w, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-37.png?resize=768%2C458&amp;ssl=1 768w, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-37.png?resize=640%2C382&amp;ssl=1 640w\" sizes=\"auto, (max-width: 723px) 100vw, 723px\" \/><figcaption class=\"wp-element-caption\">Figure C \u2013 Impact of Gas and Carbon Costs on Wholesale Electricity Prices<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">In October 2025, it estimates fuel costs of \u00a353.88 per MWh and carbon costs of \u00a327.31 per MWh or 33.6% of the total. It is worth noting that carbon costs have risen 37.7% from \u00a319.84 per MWh in January of this year. This is because the Prime Minister has signed us up to the EU Emissions Trading Scheme, where carbon costs were much higher than the UK. This has the effect of pushing up our costs of electricity.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Removing these carbon costs would immediately reduce the wholesale price of electricity and bring down bills. A welcome side-effect is that the revenue for renewables generators funded by Renewables Obligation Certificates (ROCs) would also be cut as they receive the wholesale price plus their certificates on top. Moreover, wind and solar farms operating on a merchant basis would also see a reduction in revenue, leading to an even bigger reduction in bills.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">According to DESNZ statistics, the UK power sector emitted about 37.5 MtCO2e in 2024. The CPS cost \u00a318 per tonne and the average carbon cost in the ETS was about \u00a338 per tonne, so the total added to our bills from these costs was about \u00a32.1 billion. Emissions are falling but ETS costs are rising, so it is difficult to say quite how this cost would move in the future. For the average electricity bill of 2,700 kWh, the annual saving would be about \u00a370.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Renewables Subsidies Driving High Electricity Prices<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">We are often told that renewables are cheap and if we could only get rid of all that pesky gas then our electricity bills will fall. In fact, Ed Miliband\u00a0<a href=\"https:\/\/x.com\/Ed_Miliband\/status\/1991779355505328263?s=20\" target=\"_blank\" rel=\"noreferrer noopener\">incorrectly blamed<\/a>\u00a0the recent rise in the Ofgem price cap on fossil fuel markets and was on the receiving end of a community note as a result. However, the flaw in the \u2018cheap renewables\u2019 argument is that advocates only compare marginal costs of generation, not the full costs. So, while it is true that the wind and the sun are free, wind turbines, solar panels and the equipment required to connect them to the grid are not. By looking at the actual cost of subsidies, we can see the actual cost of renewables, shown in Figure D.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" width=\"723\" height=\"491\" data-attachment-id=\"415668\" data-permalink=\"https:\/\/climatescience.press\/?attachment_id=415668\" data-orig-file=\"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-38.png?fit=3653%2C2478&amp;ssl=1\" data-orig-size=\"3653,2478\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"image\" data-image-description=\"\" data-image-caption=\"\" data-large-file=\"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-38.png?fit=723%2C491&amp;ssl=1\" src=\"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-38.png?resize=723%2C491&#038;ssl=1\" alt=\"Bar chart showing the basic cost of electricity by technology and subsidy scheme in pounds per megawatt-hour (\u00a3\/MWh). Categories include Gas, Offshore Wind, Onshore Wind, Solar, Nuclear, and Biomass, with corresponding fuel, carbon costs, and subsidies represented in different colors.\" class=\"wp-image-415668\" srcset=\"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-38.png?resize=1024%2C695&amp;ssl=1 1024w, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-38.png?resize=300%2C204&amp;ssl=1 300w, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-38.png?resize=768%2C521&amp;ssl=1 768w, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-38.png?resize=1536%2C1042&amp;ssl=1 1536w, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-38.png?resize=2048%2C1389&amp;ssl=1 2048w, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-38.png?resize=640%2C434&amp;ssl=1 640w, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-38.png?resize=1200%2C814&amp;ssl=1 1200w, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-38.png?w=1446&amp;ssl=1 1446w, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-38.png?w=2169&amp;ssl=1 2169w\" sizes=\"auto, (max-width: 723px) 100vw, 723px\" \/><figcaption class=\"wp-element-caption\">Figure D \u2013 Basic Cost of Electricity by Technology and Subsidy Scheme<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Starting with gas, using the Ember data, the cost of gas-fired electricity has been about \u00a381 per MWh in October this year made up of roughly \u00a354 per MWh fuel costs and \u00a327 per MWh carbon costs.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Moving now to offshore wind that is subsidised by both CfDs and Renewable Obligation Certificates (ROCs). The weighted average strike price for CfD-funded Offshore Wind from April to October 2025 has been about \u00a3155 per MWh, with \u00a393 per MWh or 60% of revenue coming from subsidies and the balance of \u00a362 coming from the market. The strike price has been increased by the inflation indexing at the beginning of April and the Neart na Gaoithe (NNG) wind farm recently activating its CfD at a current price of \u00a3162.82 per MWh. The basic cost of CfD-funded offshore wind is almost double gas-fired electricity. ROC-funded offshore wind is even more expensive. These windfarms receive the market price for their output (assumed to be the same as for CfD-funded generators) plus an average of 1.9 ROCs per MWh of output. Ofgem has set the&nbsp;<a href=\"https:\/\/www.ofgem.gov.uk\/publications\/renewables-obligation-buy-out-price-and-mutualisation-threshold-and-ceilings-2025-2026\" target=\"_blank\" rel=\"noreferrer noopener\">buyout price<\/a>&nbsp;for these certificates at \u00a367.06 per MWh for 2025-26. This puts the current cost of ROC-funded offshore wind at \u00a3190 per MWh, with \u00a3127 per MWh or 67% of revenue coming from subsidies.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A similar story can be seen for onshore wind with the basic cost being more expensive than gas. Several new solar farms have come on stream recently so the basic cost of CfD-funded solar is lower than gas including carbon costs, but more expensive than the raw cost of gas-fired electricity. However, ROC and Feed-in-Tariff funded solar is much more expensive.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">New offshore wind was awarded contracts at \u00a385 per MWh at 2025 prices in AR6, but the main project, Hornsea 4 has been cancelled as uneconomic. There were many projects awarded contracts at cheap prices in AR4, about \u00a349 per MWh at 2025 prices. On the face of it, this basic cost is lower than even the raw price of gas-fired electricity, but these projects have either been cancelled or partially rebid at higher prices.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">New offshore contracts are on offer in AR7 at \u00a3117 per MWh, index-linked for 20 years, again the basic cost is much more expensive than the fully-loaded cost of gas-fired electricity. The prices on offer have also risen for onshore wind and solar compared to AR6 contract awards.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Renewables Subsidies<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Let us have a look at the total cost of all these subsidies. Renewables are subsidised by three subsidy schemes: Renewable Obligations Certificates (ROCs), Contracts for Difference (CfDs) and Feed-in-Tariffs (FiTs).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">ROC-funded generators are awarded certificates for each unit of electricity generated in addition to the market price they receive for their output. Accordingly, electricity from these generators will always be more expensive than market rates, often set by gas. Even though this scheme is closed to new participants,&nbsp;<a href=\"https:\/\/obr.uk\/efo\/economic-and-fiscal-outlook-march-2025\/\" target=\"_blank\" rel=\"noreferrer noopener\">the OBR (March 2025 detailed forecast tables: receipts)<\/a>&nbsp;shows us the RO scheme cost \u00a37.8 billion in 2024-25 and the cost is forecast to rise to \u00a38.5 billion in 2026-27.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Feed-in-Tariffs (FiT) are paid mostly to small solar installations. FiT generators are paid a fixed amount to generate electricity plus a smaller amount for the power they export (or are deemed to export) to the grid. Again, this scheme is closed to new entrants, however analysis of Ofgem\u2019s latest report into the&nbsp;<a href=\"https:\/\/www.ofgem.gov.uk\/publications\/feed-tariffs-annual-report-scheme-year-14-april-2023-march-2024\" target=\"_blank\" rel=\"noreferrer noopener\">FiT scheme<\/a>&nbsp;shows it cost nearly \u00a31.9 billion in 2023-24, or around \u00a3221 per MWh which is nearly three times higher than&nbsp;<a href=\"https:\/\/tradingeconomics.com\/united-kingdom\/electricity-price\" target=\"_blank\" rel=\"noreferrer noopener\">market rates today (October 13th 2025)<\/a>&nbsp;of about \u00a382 per MWh. We might expect the cost of the FiT scheme to continue to rise in line with inflation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Finally we have the Contract for Difference (CfD) scheme used for the now annual renewables auctions. Here, generators receive a fixed amount for the power they generate. They receive the market value for their power and are then paid a top-up to the strike price of their contract. If market prices are above the strike price, they must pay back the difference. Analysis of data published by the&nbsp;<a href=\"https:\/\/dp.lowcarboncontracts.uk\/dataset\/actual-cfd-generation-and-avoided-ghg-emissions\" target=\"_blank\" rel=\"noreferrer noopener\">Low Carbon Contract Company<\/a>&nbsp;shows the CfD scheme cost a record \u00a32.4 billion in subsidies during calendar year 2024. The cost of this scheme is likely to rise, considering the high prices being offered on new 20-year index-linked contracts in the current Allocation Round 7 (AR7) auction of new capacity.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">All prices are much higher than the current price of gas-fired electricity unencumbered by carbon costs.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The total cost of these subsidy schemes amounts to over \u00a312 billion per year or more than twice the amount spent on gas for electricity, see Figure E.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" width=\"284\" height=\"159\" data-attachment-id=\"415670\" data-permalink=\"https:\/\/climatescience.press\/?attachment_id=415670\" data-orig-file=\"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-39.png?fit=284%2C159&amp;ssl=1\" data-orig-size=\"284,159\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"image\" data-image-description=\"\" data-image-caption=\"\" data-large-file=\"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-39.png?fit=284%2C159&amp;ssl=1\" src=\"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-39.png?resize=284%2C159&#038;ssl=1\" alt=\"Table showing the annual costs of renewable energy subsidy schemes in the UK, detailing expenditures for Renewables Obligation Certificates (ROCs), Contracts for Difference (CfDs), and Feed-in Tariffs (FiTs), with a total cost of \u00a312.1 billion.\" class=\"wp-image-415670\" style=\"width:404px;height:auto\"\/><figcaption class=\"wp-element-caption\">Figure E \u2013 Annual Cost of Renewables Subsidies (\u00a3bn)<\/figcaption><\/figure>\n<\/div>\n\n\n<p class=\"wp-block-paragraph\">In the latest Ofgem price cap, ROCs add over \u00a389 to our electricity bills, CfDs \u00a333 and FiTs over \u00a319, for a total of over \u00a3141 for a typical household using 2,700kWh of electricity per year. This amounts to about 16% of the ex-VAT total electricity bill of \u00a3902.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Extra Costs of Renewables<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, subsidies do not represent the full cost of renewables. First, because wind and solar are intermittent their output can fluctuate significantly so that sometimes they produce less than expected. At other times can produce more than demand or more than the grid can handle and we pay wind farms to curtail their output. The grid needs to be always balanced so we also pay gas generators to fire up to compensate. NESO produce Monthly Balancing Services Summary reports and&nbsp;<a href=\"https:\/\/www.neso.energy\/industry-information\/balancing-costs\" target=\"_blank\" rel=\"noreferrer noopener\">the data for 2024-25<\/a>&nbsp;shows the cost of this service was \u00a32.7 billion. In addition, we pay for backup through the capacity market and&nbsp;<a href=\"https:\/\/obr.uk\/efo\/economic-and-fiscal-outlook-october-2024\/\" target=\"_blank\" rel=\"noreferrer noopener\">the OBR<\/a>&nbsp;shows this cost us \u00a31.3bn in 2024-25. Grid balancing adds about \u00a348 to the typical electricity bill and the Capacity Market adds about \u00a324.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If we attribute these costs to intermittent renewables (allowing an inflation adjusted \u00a3750m for the cost of balancing before renewables) we can see the full cost of renewables, see Figure F.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" width=\"723\" height=\"434\" data-attachment-id=\"415672\" data-permalink=\"https:\/\/climatescience.press\/?attachment_id=415672\" data-orig-file=\"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-40.png?fit=3719%2C2234&amp;ssl=1\" data-orig-size=\"3719,2234\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"image\" data-image-description=\"\" data-image-caption=\"\" data-large-file=\"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-40.png?fit=723%2C434&amp;ssl=1\" src=\"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-40.png?resize=723%2C434&#038;ssl=1\" alt=\"Bar chart depicting the total cost of electricity by technology and subsidy scheme in \u00a3\/MWh, showing comparisons for gas, offshore wind, onshore wind, solar, nuclear, and biomass, along with components such as fuel costs, carbon costs, and subsidies.\" class=\"wp-image-415672\" srcset=\"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-40.png?resize=1024%2C615&amp;ssl=1 1024w, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-40.png?resize=300%2C180&amp;ssl=1 300w, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-40.png?resize=768%2C461&amp;ssl=1 768w, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-40.png?resize=1536%2C923&amp;ssl=1 1536w, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-40.png?resize=2048%2C1230&amp;ssl=1 2048w, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-40.png?resize=640%2C384&amp;ssl=1 640w, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-40.png?resize=1200%2C721&amp;ssl=1 1200w, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-40.png?w=1446&amp;ssl=1 1446w, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-40.png?w=2169&amp;ssl=1 2169w\" sizes=\"auto, (max-width: 723px) 100vw, 723px\" \/><figcaption class=\"wp-element-caption\">Figure F \u2013 Full Cost of Electricity by Technology and Subsidy Scheme<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The cost of grid balancing adds about \u00a320 to the cost of intermittent renewables and backup from the capacity market about \u00a313, together adding \u00a333 per MWh. The full cost of active CfDs for offshore wind rises to \u00a3188 per MWh, onshore wind \u00a3150 per MWh and solar \u00a3103 per MWh, all much more expensive than gas, even with a carbon tax added. The full cost of new capacity in AR6 and AR7 is also much higher than gas power.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">These extra costs are only going to get worse. NESO forecasts balancing costs to rise to \u00a36.4-\u00a38.3 billion by 2030 and OBR forecasts Capacity Market costs to rise to \u00a34.4 billion per year in 2030-31. We can therefore expect these extra costs of renewables to rise to \u00a310-12 billion by 2030, again roughly twice the current cost of gas used for electricity.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In addition, because renewables are geographically dispersed, they&nbsp;<a href=\"https:\/\/davidturver.substack.com\/p\/hidden-costs-renewables-going-up\" target=\"_blank\" rel=\"noreferrer noopener\">need extra spending<\/a>&nbsp;on transmission lines to connect them to the grid. Ofgem has recently&nbsp;<a href=\"https:\/\/www.ofgem.gov.uk\/press-release\/ofgem-approves-initial-ps24-billion-operate-and-maintain-critical-gas-networks-and-upgrade-britains-electricity-supergrid\" target=\"_blank\" rel=\"noreferrer noopener\">approved<\/a>&nbsp;an initial \u00a38.9 billion of spending on the high-voltage electricity network. They claim this is the first step of an \u00a380 billion programme to boost the electricity network capacity. They estimate this will add a further \u00a374 to electricity bills.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Other Policy Costs<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">All these costs of renewables make electricity extremely expensive, particularly for the poorest households, so the Government has introduced schemes like the Warm Homes Discount (WHD) and the Energy Company Obligation (ECO) to try to help. WHD provides a \u00a3150 discount for the poorest households and ECO obliges energy companies to install insulation measures to some homes. The cost of these schemes is paid for by everyone else and together these add about \u00a347 to electricity bills.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If electricity prices were lower, these schemes would be largely unnecessary and the cost of supporting the poorest would fall dramatically.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Latest Price Cap January to March 2026<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Gas prices have fallen from \u00a331.37 per MWh last time to \u00a328.33 per MWh in the latest price cap. As expected, this has led to a reduction in gas bills, although the \u00a338 reduction in fuel costs is partly offset by a \u00a33 increase in policy costs driven by an expansion in the WHD. After some other minor charges, the net change in gas bills is a \u00a335 reduction (ex-VAT)<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, despite the reduction in gas prices, the fuel costs of electricity have gone up because of the increase in carbon costs. Overall electricity bills are up \u00a338 (ex-VAT) since last time driven by the expansion of WHD, carbon costs and core operating costs of suppliers. We should also mention the cost of Sizewell C through the Nuclear Regulated Asset Base (nRAB) scheme has been added to policy costs, adding \u00a313 (ex-VAT) to the typical electricity bill.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Despite gas prices falling, combined gas and electricity bills are \u00a365 higher (ex-VAT) than the April-June 2024 period just before Labour came to power, promising to cut our bills by \u00a3300.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>How to Reduce Bills<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The high cost of energy means we face a version of the Trolley Problem. This is where you face a dilemma of whether to divert a runaway trolley bus to kill one person instead of five. In our version of the problem we must sacrifice either society or the Green Blob, see Figure G.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" width=\"723\" height=\"408\" data-attachment-id=\"415673\" data-permalink=\"https:\/\/climatescience.press\/?attachment_id=415673\" data-orig-file=\"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-41.png?fit=4180%2C2360&amp;ssl=1\" data-orig-size=\"4180,2360\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"image\" data-image-description=\"\" data-image-caption=\"\" data-large-file=\"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-41.png?fit=723%2C408&amp;ssl=1\" src=\"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-41.png?resize=723%2C408&#038;ssl=1\" alt=\"\" class=\"wp-image-415673\" srcset=\"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-41.png?resize=1024%2C578&amp;ssl=1 1024w, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-41.png?resize=300%2C169&amp;ssl=1 300w, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-41.png?resize=768%2C434&amp;ssl=1 768w, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-41.png?resize=1536%2C867&amp;ssl=1 1536w, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-41.png?resize=2048%2C1156&amp;ssl=1 2048w, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-41.png?resize=640%2C361&amp;ssl=1 640w, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-41.png?resize=1200%2C678&amp;ssl=1 1200w, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-41.png?w=1446&amp;ssl=1 1446w, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/image-41.png?w=2169&amp;ssl=1 2169w\" sizes=\"auto, (max-width: 723px) 100vw, 723px\" \/><figcaption class=\"wp-element-caption\">Figure G \u2013 Net Zero Trolley Problem<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">If we continue down the current Net Zero path, our economy and wider society faces an existential threat from high energy prices. We must face the unpalatable truth that moving onto the path to prosperity will require measures that will be painful for some, most notably what can be loosely termed the Green Blob.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Reform Party has committed to end Net Zero and the Tories have recently pledged to repeal the Climate Change Act, disband the Climate Change Committee, eliminate carbon costs and end ROCs early. These new Tory policies reflect some of the ideas discussed in&nbsp;<a href=\"https:\/\/davidturver.substack.com\/p\/what-if-we-ditched-net-zero#:~:text=A%20Path%20to%20Prosperity\" target=\"_blank\" rel=\"noreferrer noopener\">earlier articles<\/a>. Reform has committed to striking down any contracts agreed in the current Allocation Round 7 (AR7) auction of new renewables capacity.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In the Budget, Labour has abolished the Energy Company Obligation, cutting about \u00a360 from energy bills. It will also temporarily move about 75% of the cost of the Renewables Obligation from bills and into general taxation<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If the Government has an epiphany about energy costs, it could also consider cutting VAT on energy bills, delivering an immediate cut of 5%. Other measures could be considered including cutting curtailment charges and ending the spending on grid expansion.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Taken together, these measures would reduce energy bills, meaning the WHD could also be cut, reducing bills further.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">On the supply side, the Energy Profits Levy on oil and gas producers should be cut and the ban on offshore and onshore drilling should also be lifted. Increasing supply ought to reduce prices and of course we might also earn export revenues. In the medium term we need to build more gas-fired generators and massively expand out nuclear fleet after streamlining nuclear regulations.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Conclusions<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">We face an existential crisis from high energy prices. The Net Zero project should be abandoned and be replaced by a project with the sole aim of delivering cheap and abundant energy. There are many measures that could be taken in the short term to cut bills. Fixing the supply side will take longer and work on that should start now.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It is encouraging that opposition parties have started to challenge the Net Zero orthodoxy. The Green Blob should be left in no doubt that the trolley bus has been diverted and it is coming for it. Time to get out of the way.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>David Turver&nbsp;writes the&nbsp;<\/em><a href=\"https:\/\/davidturver.substack.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">Eigen Values<\/a>&nbsp;<em>Substack page, where this article&nbsp;<a href=\"https:\/\/davidturver.substack.com\/p\/why-is-my-energy-bill-even-higher\" target=\"_blank\" rel=\"noreferrer noopener\">first appeared<\/a>.<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Ofgem recently announced the price cap for the first quarter of 2026 and, despite gas prices falling, the overall price cap has gone up. The Budget has made some small changes to reduce energy bills, but the change to Renewables Obligations is simply moving the cost around not tackling the root cause. I am giving a talk later this week on why our energy bills are so high, so it is time to update the figures on the real causes of high energy bills.<\/p>\n","protected":false},"author":121246920,"featured_media":415676,"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":"Discover why energy bills are rising despite falling gas prices. Explore real causes and potential solutions to lower costs.","jetpack_seo_html_title":"Understanding the Rise in UK Energy Bills: Key Factors Explained","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":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":true,"token":"eyJpbWciOiJodHRwczpcL1wvY2xpbWF0ZS1zY2llbmNlLnByZXNzXC93cC1jb250ZW50XC91cGxvYWRzXC8yMDI1XC8xMlwvMEFRT2xaZzczM0dXdHhOMllWbDlQSjJ0LThrSDdBUnMtNUNDUDJ1c2c5N1p2SGRCSlNCcXBsTEw4eENTVkU5ajVpWXFiTGZKd1duMFpnX1dkYzB2YnpQSzNXS2JZNkdCSHBkTTVmTlRyREFsMjF2cTdGVEpkdldWQ190ajdmcFUtMS0xMDI0eDUwOS5qcGVnIiwidHh0IjoiV2h5IGlzIE15IEVuZXJneSBCaWxsIEV2ZW4gSGlnaGVyPyIsInRlbXBsYXRlIjoiaGlnaHdheSIsImZvbnQiOiIiLCJibG9nX2lkIjoxNTU4MTI0NDl9.NA5G9JnkZBOOS8YFOjYimKdsUXcN87bWaYm2LOdA61MMQ"},"version":2},"jetpack_post_was_ever_published":false},"categories":[1],"tags":[691839931,691819691,691839932,691819461,691831484,691822002,691819239,691818154,691819094],"class_list":{"0":"post-415661","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","6":"hentry","7":"category-uncategorized","8":"tag-carbon-price-support-mechanism-cps","9":"tag-electricity-prices","10":"tag-emissions-trading-scheme-ets","11":"tag-energy-bills","12":"tag-energy-secretary-ed-miliband","13":"tag-green-blob","14":"tag-green-subsidies","15":"tag-net-zero","16":"tag-renewable-green-energy","18":"fallback-thumbnail"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/0AQOlZg733GWtxN2YVl9PJ2t-8kH7ARs-5CCP2usg97ZvHdBJSBqplLL8xCSVE9j5iYqbLfJwWn0Zg_Wdc0vbzPK3WKbY6GBHpdM5fNTrDAl21vq7FTJdvWVC_tj7fpU-1.jpeg?fit=1856%2C922&ssl=1","jetpack_likes_enabled":true,"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/paxLW1-1K8d","jetpack-related-posts":[{"id":428311,"url":"https:\/\/climatescience.press\/?p=428311","url_meta":{"origin":415661,"position":0},"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":246555,"url":"https:\/\/climatescience.press\/?p=246555","url_meta":{"origin":415661,"position":1},"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":293418,"url":"https:\/\/climatescience.press\/?p=293418","url_meta":{"origin":415661,"position":2},"title":"Cheap Renewables? British OFGEN Issues 48 Hour Price Hike Warning","author":"uwe.roland.gross","date":"01\/01\/2024","format":false,"excerpt":"The British Government could bring rapid energy price relief by issuing permits to UK based fracking company\u00a0Caudrilla. But this would undermine Net Zero policies.","rel":"","context":"In \"British Government\"","block_context":{"text":"British Government","link":"https:\/\/climatescience.press\/?tag=british-government"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/01\/windfarm-money.webp?fit=1200%2C768&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/01\/windfarm-money.webp?fit=1200%2C768&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/01\/windfarm-money.webp?fit=1200%2C768&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/01\/windfarm-money.webp?fit=1200%2C768&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/01\/windfarm-money.webp?fit=1200%2C768&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":262053,"url":"https:\/\/climatescience.press\/?p=262053","url_meta":{"origin":415661,"position":3},"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":419601,"url":"https:\/\/climatescience.press\/?p=419601","url_meta":{"origin":415661,"position":4},"title":"Gas Boiler Owners \u201cWill Subsidise Heat Pump Users\u201d With New Levy Under Ed Miliband\u2019s \u00a315 Billion Energy Plans","author":"uwe.roland.gross","date":"03\/01\/2026","format":false,"excerpt":"This story claim that, as part of Energy Secretary Ed Miliband's upcoming \u00a315 billion Warm Homes Plan, the UK government is considering a new green levy of around \u00a330 per year on gas bills. This would effectively mean gas boiler owners subsidise lower electricity costs, making heat pumps more economically\u2026","rel":"","context":"In \"Energy Secretary Ed Miliband\"","block_context":{"text":"Energy Secretary Ed Miliband","link":"https:\/\/climatescience.press\/?tag=energy-secretary-ed-miliband"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/01\/AQPerHIO-8CNWqosa8JatiEs5bLgweA8O6uwleP3fgHvqFI9n69-FzrSEGHTMEgdd6FOqYRTY7UlhtPDQkTx8QyHL0kIotVZr07nFeBL4QsFALxgCDWa1wJxQHtvgPu6jX3udC0tIer_tUBTgMDGH0p3LgMsbw.jpeg?fit=1200%2C1200&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/01\/AQPerHIO-8CNWqosa8JatiEs5bLgweA8O6uwleP3fgHvqFI9n69-FzrSEGHTMEgdd6FOqYRTY7UlhtPDQkTx8QyHL0kIotVZr07nFeBL4QsFALxgCDWa1wJxQHtvgPu6jX3udC0tIer_tUBTgMDGH0p3LgMsbw.jpeg?fit=1200%2C1200&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/01\/AQPerHIO-8CNWqosa8JatiEs5bLgweA8O6uwleP3fgHvqFI9n69-FzrSEGHTMEgdd6FOqYRTY7UlhtPDQkTx8QyHL0kIotVZr07nFeBL4QsFALxgCDWa1wJxQHtvgPu6jX3udC0tIer_tUBTgMDGH0p3LgMsbw.jpeg?fit=1200%2C1200&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/01\/AQPerHIO-8CNWqosa8JatiEs5bLgweA8O6uwleP3fgHvqFI9n69-FzrSEGHTMEgdd6FOqYRTY7UlhtPDQkTx8QyHL0kIotVZr07nFeBL4QsFALxgCDWa1wJxQHtvgPu6jX3udC0tIer_tUBTgMDGH0p3LgMsbw.jpeg?fit=1200%2C1200&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/01\/AQPerHIO-8CNWqosa8JatiEs5bLgweA8O6uwleP3fgHvqFI9n69-FzrSEGHTMEgdd6FOqYRTY7UlhtPDQkTx8QyHL0kIotVZr07nFeBL4QsFALxgCDWa1wJxQHtvgPu6jX3udC0tIer_tUBTgMDGH0p3LgMsbw.jpeg?fit=1200%2C1200&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":237286,"url":"https:\/\/climatescience.press\/?p=237286","url_meta":{"origin":415661,"position":5},"title":"Mail\u2019s Fake Bailout Claims Debunked","author":"uwe.roland.gross","date":"01\/01\/2023","format":false,"excerpt":"Households across Britain are being punished with a \u2018stealth tax\u2019 on their energy bills amounting to billions of pounds to pay for the bailout of dozens of electricity and gas supply companies.","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-22.png?fit=1200%2C801&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/01\/image-22.png?fit=1200%2C801&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/01\/image-22.png?fit=1200%2C801&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/01\/image-22.png?fit=1200%2C801&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/01\/image-22.png?fit=1200%2C801&ssl=1&resize=1050%2C600 3x"},"classes":[]}],"_links":{"self":[{"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts\/415661","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=415661"}],"version-history":[{"count":9,"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts\/415661\/revisions"}],"predecessor-version":[{"id":415678,"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts\/415661\/revisions\/415678"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/media\/415676"}],"wp:attachment":[{"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=415661"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=415661"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=415661"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}