energy costs. — Bulb Community

energy costs.

When the pipe line is connected will the price of our energy still be increased?

Comments

  • I t seems as though Bulb is going the way of all the other energy companies; with big increases for the consumer.
  • We'll definitely only increase our prices if wholesale costs remain high. If they go down then we'll be sure to follow. At the moment, the Forties Pipeline being out of action is only one of the contributors to high costs. This winter is also colder than expected, and high demand in Asia is pushing up gas prices globally.

    We just have to wait and see. We'd rather not increase prices, so we'll only do it if absolutely necessary.
  • The Bulb blog says that there is only one electricity price in the UK, so if the cost of generating that electricity goes up because gas prices goes up, then it makes it a bit of a farce 'buying green energy', surely. One of the reasons I wanted to buy green energy was to help reduce our impact on the planet, but the other is I believed that the price of green energy would flatten out, and even go down over time compared to the non-green alternatives. As oil and as prices continue to rise due to reduction in supply we would see renewables energy prices getting much cheaper. UK energy prices would then, in effect, start subsidising the oil and gas prices. Is this a wrong view??
  • Kelvin said:

    The Bulb blog says that there is only one electricity price in the UK, so if the cost of generating that electricity goes up because gas prices goes up, then it makes it a bit of a farce 'buying green energy', surely. One of the reasons I wanted to buy green energy was to help reduce our impact on the planet, but the other is I believed that the price of green energy would flatten out, and even go down over time compared to the non-green alternatives. As oil and as prices continue to rise due to reduction in supply we would see renewables energy prices getting much cheaper. UK energy prices would then, in effect, start subsidising the oil and gas prices. Is this a wrong view??

    There are two other things to consider.

    First, we also buy a Renewable Energy Guarantee of Origin (REGO) certificate with every MWh of electricity that we buy. This means extra profit directly to the renewable generator. And the more demand there is for green energy, i.e. buying a REGO, the more the generators can charge for their REGOs. So there is more incentive for people to invest in renewable generation.

    And second, while the retail price we pay per MWh is the same regardless of the fuel, the profit that the generator makes does change. As costs for renewable generation goes down, the profits for the renewable generators increase. This again means there is more incentive for people to invest in green generation over fossil fuel generation in future.
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