The answer is it is superficially attractive and might work – but is also more complex and might not.
bow_down_whelp on
Northern Ireland is one of the poorest parts of the UK and our unit rate is going to 31p
Delicious_Shop9037 on
This should have been done years ago. We are the only country to shaft ourselves in this manner.
tomdon88 on
They need to do this, as even if you imagine we have 120% of renewables available to serve our needs. What should happen is the assets owners compete on price to be included in the 100% needed, the cost will then be floored at the marginal cost of production (close to zero for renewables).
As it stands the renewable production owners would be incentivised to create demand to get to the point that gas is needed, they may for instance mine for bit coins, or bring in power hungry data centres or simply turn electricity into heat on an industrial scales. At the same time they may switch off some of their network, and export more power to the continent. All just so gas has to be used to meet the marginal demand. As then they get paid potentially multiple times more for exactly the same energy.
Few-Proposal-4681 on
> He has proposed a system where each generator gets paid the price they actually bid to sell the electricity – not the highest price on the market – which he argues would reflect the truer, cheaper cost of renewables.
Is that really it? This seems incredibly naive. Generators will just start bidding the highest price on the market. Except now with less profit for reinvestment as they’ll have to pay a bunch of finance bros to forecast that price.
All these articles always seem to imply the marginal pricing system is purely government policy, and don’t address the fact marginal pricing is an inevitability due to market forces in a perfectly fungible market.
Cholas71 on
Looking at doesn’t sound that serious to me. It’s horrendously complex and I only understand the basics (we need a fleet of gas generators just sitting there and no business is doing that for free) more so that so much of our power is intermittent wind/solar.
Veloxxx_ on
Nuclear is the best investment at this point, all renewables including it have their issues but nuclear would be the cheapest and safest option out of them all.
Nuclear fuels are also quite abundant and produce literally 0 emissions
hoopjoness on
Anyone interested in solar bc of the prices I can’t recommend it enough. I wasn’t expecting it but even make a profit every month selling unused household energy back to the grid.
sprocket314 on
This is what Spain did and it worked massively well. The UK should totally do this.
InformationNew66 on
This has been asked for 4 years, since russia attacked ukraine.
And nothing has been done, just promises. I am sure it won’t be done now either.
sjw_7 on
I get why its complex to change because its private companies bidding to sell their power to the grid. If they move to a system where they get paid for what they bid then the generators would just hike their prices to guess what the highest bid would be.
At the moment even though Gas is often only used to meet a small amount of demand it does set the price for everything most of the time
A volatile fossil fuels market benefits the renewable suppliers because the price they get paid is based on international pricing for something they don’t use. Their cost of generating electricity stays the same regardless of the status of things like the Strait of Hormuz.
Why not cap the price that can be paid to the renewables generators. Base it on a percentage of the rolling average of the price paid for gas generation and removing the short term peaks. That way they still get paid more if gas is in the mix but don’t get windfalls for gas price changes that are then passed on to the consumer.
Anderrrrr on
When there’s an generational energy crisis as we all witness the start of advanced climate change in action and oil resource and religious shit show wars and we are all coping for hotter and windier summers so we can save on our British Gas/Octopus bill with buying solar panels and building wind turbines up the arse.
Suddenly what was really hard to turn left to, we suddenly have the know how to find emergency solutions because we are starting to shit ourselves while AI data centres and energy usage in general is through the roof alongside the oil bastards in cahoots with the AI bro bellends.
It’s all fun and games until WW3 is at your doorstep, then being left in key areas is convenient and necessary all of a sudden, big lol honestly.
This is the reality check that I am a very mentally unwell 30 year old man and no longer a teenager, fantastic response as soon as the crisis is at our doorstep.
TheLightStalker on
Work with Octopus Energy to create sustainable renewable energy sources in the UK > Decouple our pricing from the global energy pricing shitshow > Profit > ????
Tidal, Wind and Solar funded by North sea.
Old_Roof on
Decoupling (now) isn’t being done for a good reason. It would immediately put a break on all plans for years. The “Green transition” would stop dead in its tracks.
Do not trust anybody who says otherwise or that it is some easy decision. They have no idea what they’re talking about.
Numerous-Corner-6303 on
As someone who is electricity only and has solar panels yes please! Finally
Sergeant_Fred_Colon on
I’d much rather they got ride of the standing charge that makes up most of my bill.
I use about 1kwh a day.
Acceptable-Gur-5351 on
Really pleased Labour aren’t just throwing money at consumers (who ultimately just end up subsidising energy companies) , and are instead investing to create a more robust grid so taxpayers money can go on fixing the country.
gagagagaNope on
And they still don’t get that endless government meddling and taxation are the core cause of the problem.
navagon on
The government has to be mindful of the fact that energy companies will be looking to turn this to their advantage. Check every angle. Block every grift.
Blessed-22 on
How about getting rid of standing charges? Why do we even have them in the first place? My internet provider isn’t charging me 18p a day for having their router in my house.
ucardiologist on
Looking doesn’t mean anything
Renationalise now all the energy and water infrastructure
homealoneinuk on
First of all take down the standing order part…im away from the house for full month and still pay 70£…
Important-Room4251 on
When I look at my energy companies app it tells me how green the grid is for every hour of every day, yet we pay full whack gas the whole time.
Every time I see it it’s a reminder of government’s lack of willingness to change the way our bills are calculated.
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There’s an interesting explainer on this here.
https://www.carbonbrief.org/qa-why-does-gas-set-the-price-of-electricity-and-is-there-an-alternative/
The answer is it is superficially attractive and might work – but is also more complex and might not.
Northern Ireland is one of the poorest parts of the UK and our unit rate is going to 31p
This should have been done years ago. We are the only country to shaft ourselves in this manner.
They need to do this, as even if you imagine we have 120% of renewables available to serve our needs. What should happen is the assets owners compete on price to be included in the 100% needed, the cost will then be floored at the marginal cost of production (close to zero for renewables).
As it stands the renewable production owners would be incentivised to create demand to get to the point that gas is needed, they may for instance mine for bit coins, or bring in power hungry data centres or simply turn electricity into heat on an industrial scales. At the same time they may switch off some of their network, and export more power to the continent. All just so gas has to be used to meet the marginal demand. As then they get paid potentially multiple times more for exactly the same energy.
> He has proposed a system where each generator gets paid the price they actually bid to sell the electricity – not the highest price on the market – which he argues would reflect the truer, cheaper cost of renewables.
Is that really it? This seems incredibly naive. Generators will just start bidding the highest price on the market. Except now with less profit for reinvestment as they’ll have to pay a bunch of finance bros to forecast that price.
All these articles always seem to imply the marginal pricing system is purely government policy, and don’t address the fact marginal pricing is an inevitability due to market forces in a perfectly fungible market.
Looking at doesn’t sound that serious to me. It’s horrendously complex and I only understand the basics (we need a fleet of gas generators just sitting there and no business is doing that for free) more so that so much of our power is intermittent wind/solar.
Nuclear is the best investment at this point, all renewables including it have their issues but nuclear would be the cheapest and safest option out of them all.
Nuclear fuels are also quite abundant and produce literally 0 emissions
Anyone interested in solar bc of the prices I can’t recommend it enough. I wasn’t expecting it but even make a profit every month selling unused household energy back to the grid.
This is what Spain did and it worked massively well. The UK should totally do this.
This has been asked for 4 years, since russia attacked ukraine.
And nothing has been done, just promises. I am sure it won’t be done now either.
I get why its complex to change because its private companies bidding to sell their power to the grid. If they move to a system where they get paid for what they bid then the generators would just hike their prices to guess what the highest bid would be.
At the moment even though Gas is often only used to meet a small amount of demand it does set the price for everything most of the time
A volatile fossil fuels market benefits the renewable suppliers because the price they get paid is based on international pricing for something they don’t use. Their cost of generating electricity stays the same regardless of the status of things like the Strait of Hormuz.
Why not cap the price that can be paid to the renewables generators. Base it on a percentage of the rolling average of the price paid for gas generation and removing the short term peaks. That way they still get paid more if gas is in the mix but don’t get windfalls for gas price changes that are then passed on to the consumer.
When there’s an generational energy crisis as we all witness the start of advanced climate change in action and oil resource and religious shit show wars and we are all coping for hotter and windier summers so we can save on our British Gas/Octopus bill with buying solar panels and building wind turbines up the arse.
Suddenly what was really hard to turn left to, we suddenly have the know how to find emergency solutions because we are starting to shit ourselves while AI data centres and energy usage in general is through the roof alongside the oil bastards in cahoots with the AI bro bellends.
It’s all fun and games until WW3 is at your doorstep, then being left in key areas is convenient and necessary all of a sudden, big lol honestly.
This is the reality check that I am a very mentally unwell 30 year old man and no longer a teenager, fantastic response as soon as the crisis is at our doorstep.
Work with Octopus Energy to create sustainable renewable energy sources in the UK > Decouple our pricing from the global energy pricing shitshow > Profit > ????
Tidal, Wind and Solar funded by North sea.
Decoupling (now) isn’t being done for a good reason. It would immediately put a break on all plans for years. The “Green transition” would stop dead in its tracks.
Do not trust anybody who says otherwise or that it is some easy decision. They have no idea what they’re talking about.
As someone who is electricity only and has solar panels yes please! Finally
I’d much rather they got ride of the standing charge that makes up most of my bill.
I use about 1kwh a day.
Really pleased Labour aren’t just throwing money at consumers (who ultimately just end up subsidising energy companies) , and are instead investing to create a more robust grid so taxpayers money can go on fixing the country.
And they still don’t get that endless government meddling and taxation are the core cause of the problem.
The government has to be mindful of the fact that energy companies will be looking to turn this to their advantage. Check every angle. Block every grift.
How about getting rid of standing charges? Why do we even have them in the first place? My internet provider isn’t charging me 18p a day for having their router in my house.
Looking doesn’t mean anything
Renationalise now all the energy and water infrastructure
First of all take down the standing order part…im away from the house for full month and still pay 70£…
When I look at my energy companies app it tells me how green the grid is for every hour of every day, yet we pay full whack gas the whole time.
Every time I see it it’s a reminder of government’s lack of willingness to change the way our bills are calculated.