Perhaps the blame is because the previous Tory government banned onshore wind, the cheapest form of wind energy, a ban only lifted recently under Starmer? I don't know the reason, but it deserves a more serious analysis.
Perhaps the blame is because the previous Tory government banned onshore wind, the cheapest form of wind energy, a ban only lifted recently under Starmer? I don't know the reason, but it deserves a more serious analysis.
As to whether the cause is Tory ban of onshore wind- I'm skeptical. I don't think wind is any cheaper than gas once you include the necessary energy storage capacity- especially when there is huge amounts of gas sitting under the north sea which the new Labour government is planning to ban pumping: https://www.forbes.com/sites/gauravsharma/2024/07/12/sudden-...
Also, they're banning looking for new gas, the cost of which is 91% subsidised.
> The new 80% Investment Allowance will mean businesses will overall get a 91p tax saving for every £1 they invest – providing them with an additional, immediate incentive to invest. This nearly doubles the tax relief available and means the more investment a firm makes, the less tax they will pay.
https://www.gov.uk/government/publications/cost-of-living-su...
https://commonslibrary.parliament.uk/why-is-cheap-renewable-...
https://www.youtube.com/watch?v=NicE0-N9ux0
TLDR version - https://www.youtube.com/watch?v=R3bo-s_OY4Q
This is why. Prices are set by what electricity retailers think the "market will bear". Unlike suppliers bidding in which the lowest price wins, our electricity prices are set by the highest bidders.
It al
If the number of suppliers needed happens to be ten, then the ten lowest bidders prevail, and the highest bidders lose out. The ten lowest bidders all get the rate offered by the tenth lowest bidder, ie. if a supplier bids at its own cost, it'll likely make a profit (or not get a contract at all).