By Paul Homewood
Last week I looked at the mechanics of how renewable subsidies are paid, now I will look at just how much they are costing us all.
First of all we need to check out the wholesale market price of electricity in the UK, as this is integral to the calculation.
Prices are £/MWh, and the graph is interactive, if you click on the link:
As a rule of thumb, wholesale prices in the last few years has hovered around £50/MWh, but prices began dropping last year to under £40/MWh, even before COVID. With falling oil and gas prices and low demand this year, prices are now around £20/MWh.
Government projections of fossil fuel and power prices have for many years assumed a trend rising above inflation. In turn this has given them an excuse for baking in higher renewable costs. The reality has been the opposite.
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