Electricity price increases

Dear Bulb,
You state your electricity is 100% renewable: wind, sun, hydro. Ie. It is disconnected from fossil fuel pricing. So why are your electricity prices increasing so much. You have not increased gas pricing on 6th Dec- yet it is fossil fuel gas wholesale prices that has dramatically escalated and impacted wholesale electricity & gas cost. So what are Bulb up to? Is it possible the electricity is not 100% renewable (it being so impacted by fossil fuel prices!)? If the answer is a majority of your electricity is wholesale (not from firm PPA contracts and you buy cheap REGO certificates from wholesale REGO market to badge it renewable- then you need to be upfront and transparent about that. I would appreciate a full and proper answer. I asked this once before but got a ‘see the blog’ generic answer.

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Where do they state this?

Let’s say I am a producer of green energy. I sell electricity at £50 a MW. Am I going to continue to sell my electricity to suppliers at that price when other, less desirable non green energy is being sold for £100 a MW?? With your logic, that should be the case. Even if that was the case, all the green energy would be bought because we don’t have enough green leccy for the whole of the uk so some would need to be bought from the more expensive gas leccy.

But into the real world now. Most of the UK’s energy comes from combined cycle gas turbines. There’s occasional days where wind produces more, but those days are unusual. AS gas is the main contributor, when gas prices go up, so does leccy prices.

Hi @PaulS and @izzyhunt :wave:

The UK is still dependent on gas-fired power plants for a significant chunk of electricity generation and at the moment, there is only one price for gas or electricity in the UK. There aren’t separate markets for green and non-green energy sources. The price is determined by what people will pay for energy at a particular time, regardless of the source. So, when the cost of electricity produced by burning gas goes up, so does the cost of electricity from wind, solar and all other green sources. :chart_with_upwards_trend:

This section of our website breaks down our fuel mix in a transparent way and (sorry to link the blog) this energy explained post covers the two ways we buy renewable electricity in a bit more detail.

As @izzyhunt alluded to we need to keep building more renewable generation and a smart, flexible electricity grid, to reduce our reliance on gas.

Thanks,
Cara :stars: