Sunday 4 August 2013

Are we paying too much for electricity?



Energy prices are rising steadily – we’re told it’s because we are running out of oil/gas/coal (take your pick). Now we learn that, actually it’s to boost the profits of the energy companies. The company which owns British Gas, Centrica,  have declared a 9% rise on profits to £1.58bn for the first six months of the year – paid for by their customers. Note that our energy companies are cash cows for hedge funds and conglomerates. They’re not even run by people with an interest in energy, only in making money.  
Despite record breaking profits Centrica are claiming that they can’t rule out a price rise, and that they will ‘keep our prices as low as we can’ in order to be competitive. How can their prices be ‘as low as possible’ and competitive if they are making such obscene profits? 



Instead of doing the honourable, but perhaps not newsworthy enough, action of reducing prices they are offering the gimmick of ‘Free Power Saturdays’

Is there an alternative? Yes. There are good economic arguments for renewable energy dispelling the myths about the supposed high cost and intermittent generating power. Prices for renewables are tumbling at speed, a mix of renewables means that intermittent power is not a problem. Once dirty fossil fuels generation is made to clear up its mess by paying for Carbon Capture and Storage fossil fuel generated electricity will be much more expensive than renewable energy.
See the scientific report behind these facts at:

But it all depends on government policy and the will to do the right thing. Can we expect that from our government? On past form probably not.

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