Energy Cost Update

Many will be aware that fossil fuel companies like Shell and BP are becoming criticised for making high profits from extraction, distribution and retailing gas products. They set their businesses up to make profit by selling at ‘normal’ prices based on wholesale prices at the time and projections that had no idea that the world would ‘fall out of love’ with Russia and that reliance on other countries energy output would result in higher prices, and consequently greater profit margins.

Until recently I have not heard any discussions about excessive profits being made by renewable sources, and yet the contracts that providers of on shore, off shore wind turbines, and solar farms are currently providing handsome financial returns. 

I have no problem with commercial and industrial firms and funders making profit from the potential risks taken, and many such enterprises have a responsibility to maximise their returns from funding provided by individuals and organisations that stumped up funds when the government could not (or would not) invest.

However, I think that the Green Energy Dividend has two attractive facets. Firstly, renewable energy reduces our reliance on polluting fossil fuels. Secondly if all the green generation was to be accessed at cost price to those in most need rather than feeding it in to the generation figures from fossil fuels and nuclear generation – which all gets aggregated and charged at eye watering retail and commercial tariff rates – the significantly lower average unit rate could be used to benefit those that struggle to buy energy at an affordable price.

I am not suggesting that cheaply generated energy should only be available to the poorest in society, I feel that it should be available to business and industry that can use it at the time it is generated (and that might not be at peak demand times) It could also be made available for consumption by clean energy such as charging electric vehicles (domestic and commercial) and industries like water and manufacturing that can change their working patters to fit in with our weather.

Smart meters and sophisticated energy control systems need to be rolled out. I understand that in some parts of the country water and energy smart meters do not work because the sender cannot access a signal to complete the data transfer. In 2022 this is not acceptable, and it may be necessary for everyone and each commercial consumer to have smart technology installed for the greater good.

In conclusion, the traditional providers of energy have provided a reliable service in the main, in some cases they are benefitting financially from the current situation, but renewable energy providers are not exempt from highly profitable contracts that were signed when the world was a different place. We need government to step in and help the UK get through difficulties and regenerate the economy to save our children and grandchildren paying for our addiction to energy consumption.