UK Electricity Bills Soar: High Subsidies and Grid Investment Lag
2024-12-20
High UK electricity bills aren't solely due to wholesale power costs. A recent analysis reveals that network costs and green energy subsidies are major drivers. Twenty years of stagnant grid investment now necessitate urgent expansion, skyrocketing network costs. Contracts subsidizing renewables will continue increasing bills, while past subsidies, like the Renewables Obligation and Feed-in Tariff, failed to adjust quickly enough to falling renewable energy prices, locking in massive long-term costs. The author suggests reducing grid dependence or improving grid utilization as pathways to lower future electricity bills.