Skip to content

Electricity Prices To Skyrocket

October 10, 2013

By Paul Homewood




I ran a post a few weeks ago on the Report of the Energy & Climate Change Committee, “Energy Prices, Profits and Poverty”. The Report warned of large hikes in electricity bills looming as a consequence of climate change policies.

Tucked away on Page 59 was a bit more detail, which I reproduce below.





So, to highlight:


1) Environmental charges already account for 11% on electricity bills, and 9% of dual gas/electric ones.

2) These amounts are set to rise sharply in future years.

3) By 2020, environmental charges will account for 33% of electricity bills, and 41% by 2030.

4) This increase will particularly impact electric only households (often fuel-poor).

5) Although two thirds of the extra cost would fall on non-domestic users, these costs would still find their way to domestic users, through higher prices for goods and services [not least higher taxes, as government running costs rise!]

6) These extra costs could also impact on the competitiveness of UK exports.


I would also make three other points:


1) Government policy also calls for a massive decarbonisation of domestic heating and transport. The huge increases in electricity prices, now in the pipeline, will make the electric alternatives relatively much more expensive.

2) According to the Select Committee’s Report, energy company profits are under 5%, i.e much less than the current environmental costs.

3) The projected increases do not include the effect of higher wholesale prices. Apart from other factors, the switch from cheap coal to more expensive alternatives will lead to higher wholesale costs, and therefore higher retail prices still.



All in all, a rather sorry mess.

  1. mitigatedsceptic permalink
    October 10, 2013 3:28 pm

    So many more poor plunged into fuel poverty and the middle classes footing the bills for them and thmselves. Decarbonisation and redistribution all in one swoop – and the lights will still go out! Are not some electricity providers thinking of pulling out already?c
    And who will suffer when it all turns out to be a spoof? Not the credulous politicians for sure – another fat pay rise on the way!

  2. October 10, 2013 3:34 pm

    My fixed price electricity tariff comes to an end next month. The best I can get for the next 12 months is 20%, YES 20% higher at 12.9p per KWh. I don’t know how the Energy and Climate Change Committee calculate price changes but I humbly suggest it is totally WRONG!

  3. October 10, 2013 8:05 pm

    1. Jeez Paul is copying the other side i.e. scarmongering exaggeration. Oh hang on he’s got clear evidence.
    2. “2/3 of the extra costs will fall on non-domestic” Oh so I will pay 15p/Kwh and the shop downstairs will pay 21p/Kwh well that is inciting crime …& costs will as you say come back to the consumer anyway
    3. Surely it won’t happen … UK Industry paying double price for energy as competing countries is as the greens say “unsustainable”
    4. However there is a flaw in the figures in the report, there is no certainty cos they depend on the international price of energy. If it falls the stated percentages will be much more, but the Liberal led DECC has always prophesied energy prices will massively rise ..(cos there won’t ever be any new sources like fracking or fusion)

  4. October 10, 2013 10:42 pm

    What’s worse is that the farms are give priority in selling output (at full special pricing) at all times they happen to have any. I.e., conventional plants have to ramp up and down to accommodate, and get rock-bottom pricing.

    A formula guaranteed to bankrupt even the most efficient power plant.

    Which will remove the 24/7 fall-back all renewables require. So they will go bankrupt, too. Leaving nothing.

  5. Billy Liar permalink
    October 11, 2013 10:47 am

    What is even worse is the spectacle of that disgusting liar Ed Miliband feigning shock at the recent energy price rises and promising Labour voters a price freeze when he and Baroness Blackout conspired to create the ridiculous Climate Change Act. You couldn’t make it up.

  6. October 11, 2013 11:52 pm

    Reblogged this on CraigM350.

  7. October 12, 2013 8:27 am

    I understand that to try and keep the lights on the government are commissioning a number of oil-fired generators on standby, and that these will be paid very high prices. How is this going to be paid?

    • October 12, 2013 4:35 pm

      The cost will be passed onto the National Grid, who will then recharge to the suppliers, along with the normal Grid transmission costs

      • Billy Liar permalink
        October 12, 2013 11:59 pm

        This is how the government is hiding part of the increase in energy bills. They are hiding part of the cost of ‘decarbonisation’ in the transmission costs. Notice how the government never refers to transmission costs when talking about the price increases; they only refer to the so-called ‘green taxes’. In reality, only about 50% of the bill is cost of generation. The rest is largely controlled by government mandated spending on ‘decarbonisation’ including the ridiculous attempts to insulate poor people’s houses. If they have houses, they’re not poor! (in general)

        And another thing. How many 10%’s are involved in a dirty diesel generator merchant passing his bill to the government who then passes it on to the grid and then on to the supplier. That’s nearly 50% in mark-ups by my calculation.

  8. October 12, 2013 6:12 pm

    Reblogged this on Mothers Against Wind Turbines and commented:
    Same sad story for Canada, more wind turbines = higher energy bills = higher prices for everything!

  9. eco-geek permalink
    October 16, 2013 7:45 am

    Wow! So the average UK energy bil is only £1353 whereas mine is £2088 for a small three bedroom semi. Next months rise of 8.2% will put it up to £2259 ($3614) per annum. So from now I am paying £203 ($325) per annum for these renewables. However this headline total is planned to rise to £2777 ($4443) per annum in six years time.

    Our requirements are higher than average because my wife is severely disabled and in consequence we are confined to around the clock home life with more heating due to her immobility. The government pay me a small allowance for keeping her away from extremely expensive state care dependency but the planned increase in energy bills for 2020 will mean 89% of this income will go on energy bills.

  10. mitigatedsceptic permalink
    October 16, 2013 9:45 am

    It seems to have escaped British people that all this decarbonisation and the suffering it is causing is to absolutely no avail. Britain’s contribution to carbon emission is minuscule in world terms and as we speak China and India are commissioning new coal fired stations and adding far more carbon than Britain ever did. Anyway, as I said, this whole thing is a spoof and in the real world CO2 has no measurable effect on global warming.
    Remember the Maldives? Mrs Thatcher who started AGW politics, cited them as being threatened with almost immediate inundation if nothing was done to reduce CO2 emissions. Well CO2 emissions are rising fast so what about the Maldives? Well just look for yourself – a booming luxury holiday resort, new flights into new airports – doesn’t sound like imminent inundation dose it?

    We face rising energy costs, networks out of balance, threats of blackouts and rising fuel poverty – what for – absolutely nothing but ego trips for greenies – executive class – of course!

    In any other country or here in any other age, there would be riots and blood in the streets. Why are we so intimidated by the AGW myth?


  1. Weekly Climate and Energy News Roundup | Watts Up With That?
  2. Electricity Prices to Skyrocket | Power Miser
  3. October 2013 – Blogs and Articles | shelliecorreia

Comments are closed.

%d bloggers like this: