New government prices that may appear with price caps

moneysavingexpert look at /utilities/what-are-the-price-cap-unit-rates-/

This is well worth a read. It shows what our bills may be after April and later in the year - astronomical increases.

Why ? We have been told for years that Solar and Wind energy generation are now at a lower cost than other traditional energy generation systems. The number of solar panels and wind farms has steadily increased, so why are we not seeing a gradual and consistent reduction in our energy prices?

Hello @Oldsirhippy

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. Unfortunately, the UK is still dependent on gas-fired power plants for a significant chunk of electricity generation. 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

–Carl :bulb:

Does the cost ever go down? :grinning:
Also if the cost goes up surely the SEG payment must follow?

There have been instances in the past where tariff rates have gone down, so, yes. But it doesn’t seem to happen as often as up. :slightly_frowning_face:

No, the SEG rates are not connected to domestic tariff rates in any way. Arguably, there’s no reason for them to go up (as there’s no increased cost for the renewable energy they represent).

Indeed, it might even be argued that the price cap increase would have needed to be higher if SEG rates were to be raised too (I do not know if OFGEM factors SEG in to the price cap calculations in any way).