Why renewable energy prices go up when the crisis is with gaz and fossil fuels

Ok, this seems a simple question but naively, when joining bulb I wanted to contribute the environmental crisis and no longer be dependant on the fuel crisis which is bound to worsen.
Yet my bills have gone from 96£ average over the 18 months (yes, I took the time to calculate this) to now £195 a month!!! energy rates for renewable energy should NOT have to increase as there is no shortage of it. Standing charges have increased dramatically and have nothing to do with energy shortage. I don’t get it??? how to they expect people to be able to pay 190 of energy monthly - the whole system is very sick… something s gonna have to give, and it’s not going to be nice

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I agree. Bulb want to increase my monthly payment too, to more than I use on average.
Twenty miles from where I live is a nuclear power station. Ten miles closer to where I live is a wind farm consisting of twenty turbines. Neither of those facilities cost that much more to run now than they did a year ago. I have no gas. So what am I paying this enormous increase for?

Hi @eve and @Richard_1 :wave:

They’re both two valid questions that I’ll clear up for you.

So there’s only one price for energy in the UK. There aren’t separate markets for green energy sources. When the cost of electricity produced by burning gas goes up, so does the cost of electricity from green sources.

Everyone’s energy comes from one big pot, the National Grid. This is the most efficient way of supplying energy to everyone’s homes. You can read more on our website.

– Meg :bulb:

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Thank you Megan but you didnt really address my statement that a nuclear power station and a bunch of turbines do not cost much more to run now than they did this time last year. Neither of those facilities use gas.
Is the real reason for the increase due to the UK being in the World Energy Market? If so, then our prices only follow those elsewhere. This seems wrong, when our prices increase just because someone elses has.


A large proportion of our electricity comes from burning gas. So electricity prices are affected by gas prices. Electricity is one price in the wholesale market irrespective of how it’s produced.

So basically all your advertising is a big lie to draw in the people that want to help our planet.
My winter energy bill is currently £93 pm but you want me to start paying £277 pm.
Is this a strategy to boost your cash reserves for an anticipated further rise in energy costs in October? Is this how Bulb intend to remain a major energy supplier by using the customers money?
It is time to nationalise our electricity and gas.

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Bulb have consistently claimed that they only buy their electricity from renewable sources. How can this be true if you are buying from the same big pot as everyone else?

It seems to me that the most efficient way of providing energy to everyone’s home would be to cut out the middle man.

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I run an energy company (small solar farm). Bulb are in the right on this one, although I understand why people are confused about it, as its counter intuitive.

As a producer of electricity, you can see the current wholesale price, and know you can sell your power for that price. You therefore make your electricity available for the next half hour, at the current market price.

The marketplace for electricity is very busy with lots of buyers and sellers. Most buyers will just buy the cheapest power they can get, regardless of source.
Bulb are deliberately only buying power from renewable sources, but the owners of those solar farms and wind farms are well aware of the free market price, so thats what they charge.

You are effectively getting green energy, but the price is the same as other sources. It may occasionally be the case that demand by renewable retailers exceeds supply by wind farms etc, and bulb could theoretically in that case pay more for their power, but the reverse is not true, because renewable generators are happy to sell their power to more generic retailers like british gas or eon.

So what bulb claim is 100% accurate. power-purchase-agreements are made between generators (wind farms etc) and retailers (bulb,eon). But there is one marketplace, and one price.

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“Bulb are deliberately only buying power from renewable sources”

Not quite correct. Amend and try again. Explain OFGEMs renewable certifications for your readers.

Bulb cannot buy 100% renewable when it has no power over its wholesalers.

Bulb cannot guarantee that its gas generated electricity has 100% OFGEM renewable certification. How on earth can anyone (other than a lawyer) explain renewable gas generation. Does that 'renewable ’ gas go into an isolated turbine free from and not mixed or contaminated by non-renewable gas?

This link in protest. General Chat - request termination dual fuel

Quite right. but it does emphasise the weakness of Bulb’s whole approach, which is that they only buy renewable electricity from existing suppliers and do not, of themselves, increase the amount of renewable energy generated. Faced with this issue (and I would stress that I have had no complaints about Bulb’s service), I chose to join a co-op developing a wind-farm (due to open in 2023 - Google Ripple Energy if you are interested).

This is just one of a number of community initiatives; you can find others in a Guardian article: “UK should ‘mobilise army of volunteers’ to transform energy landscape” from 7th March this year.

Anyone wanting to be assured of renewable electricity and keep their costs down should think about putting an investment into community-based projects like these.

As Bulb is now nationalised and sometime soon, when the Government can find a buyer, all its customers will be sold off to another energy company, who may or may not offer a Green tariff, it is up to us to make a decision on where our electricity comes from. Yes, I know it all comes through the Grid and all electrons are identical, but what is important is doing what we can to increase the amount of renewable electricity generated and not relying on big companies (or even Bulb) to do it for us.

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Bulb have continually lied about being 100% green that is as bare faced and misleading as they can get everyone in this country needs to take a good look at the way bulb have lied to gain customers and they are not the only company who have done/ doing this any one of them claiming to be using 100% renewables should be prosecuted for fraud and no doubt bulb will not let this note go through to the general chat line.

Hi All ,

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.

–Suki :hibiscus:

My understanding is that suppliers buy a significant majority of their electricity directly from generators under bilateral contracts with prices agreed in advance. Only small amounts of electricity would be subject to daily market prices as required to balance the system matching supply and demand. This understanding is supported by information on the Elexon (manages the electricity trading arrangements) web site. Even if the Bulb explanations are correct it would seem that renewable generators are in a windfall scenario making excess profits from consumers. Is this mis-selling? It appears to be a significant issue worthy of investigation by the Competition and Markets Authority.