From NOT A LOT OF PEOPLE KNOW THAT
y Paul Homewood
h/t Joe Public
OFGEM have simply introduced the newest vitality cap, which is able to apply to the interval April to June. Technically it has fallen from £4279 to £3280, though reductions in authorities assist imply that households gained’t see any financial savings instantly.
The cap is predicated on wholesale costs between November and January. However as I’ve been reporting in latest weeks, market costs for each fuel and electrical energy have been falling sharply since November, and which means the cap must be a lot much less come July, perhaps to round £2100, assuming wholesale costs stay the place they’re now.
https://www.ofgem.gov.uk/publications/ofgem-announces-latest-quarterly-price-cap-update
However the announcement introduced a ton of misinformation from Simon Evans, deputy editor at Carbon Transient (the renewable foyer group funded by the far-left European Local weather Basis):
No one would deny that fuel costs are increased than two years in the past, or that electrical energy costs are additionally increased because of this. Nonetheless Evans just isn’t telling the entire story, and has conflated the 2 graphs to mislead folks.
TRICK 1
He has intentionally conflated the 2 graphs for fuel and electrical energy to indicate they’re straight comparable. To be honest the graphs are OFGEM’s, however you’ll observe that the y-axis is precisely the identical on every. However nearer examination exhibits that one is per therm and the opposite per MWh, one thing that some commenters on his Twitter have identified.
One therm equals 29.3071 KWh, so the January fuel value of round 150p/therm equates to about £51/MWh, which is considerably lower than the value of electrical energy. Since then fuel costs have dropped additional to 120 pence.
Evans claims that vitality payments are excessive due to the value of fuel, however clearly they’d be a lot increased if all of us had to make use of electrical energy as a substitute.
TRICK 2
However the actual dishonesty is his failure to say that offshore and even onshore wind energy is significantly costlier than gas-fired energy, regardless of the at the moment excessive value of fuel.
Market costs of electrical energy averaged £121/MWh, and this value often displays the value of gas-fired energy. Nonetheless offshore wind farms subsidised underneath CfDs have been paid a median of £167/MWh.
And offshore wind subsidised by way of ROCs, which account for about half of the offshore sector, earn £100/MWh on prime of the market value, a complete of £221/MWh.
The weighted common price for all offshore farms was due to this fact £194/MWh.
Even onshore wind farms obtain a subsidy of £52/MWh on prime of the market value.
And these prices don’t even embrace the additional prices incurred by the grid related to intermittent wind energy.
If we had extra gas-fired energy and fewer wind energy, our vitality payments could be decrease, not increased.
