Essays by Eric Worrall
According to The Guardian, a state-owned company can overcome the obstacle of private companies who are reluctant to cut household energy bills by investing in renewable energy.
There’s a simple way to reduce the average UK electricity bill – and make energy cleaner
Christopher Hayes
Thursday, April 6, 2023 01:30 AESTRecent research estimates that a publicly owned power generation company can reduce electricity costs by £252 per household a year.
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The price spike currently affecting customers, retail suppliers and the government originates from the domestic wholesale energy market. Although 43% of our electricity is generated from clean energy source, the price is determined by the most expensive source needed to satisfy 100% of demand in a given period. As a result, energy derived mainly from clean sources is under pressure from gas prices. What then fills the gap between the lower production costs of these generators and the higher prices they are receiving? Profit. Just look at the 60% profit margin of Centrica, UK Gas owner in business generation.
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Public ownership of the UK’s clean energy production, selling at cost without price appreciation, is the only option that shortens the trade-offs we have to accept, such as demand urgent need to separate clean energy prices from gas; and increase investment in clean energy.
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To accept Christopher Hayes’ argument, you have to believe that private companies are refusing to invest in enough renewable energy to lower energy prices, because they don’t want to make a profit, and public ownership is needed to sever their reluctance to make money?
Or is Chris trying to imply that renewable energy is too expensive for private companies, even though it is the cheapest form of energy?
Perhaps WUWT readers can explain to me what Chris is trying to say.
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