Why is it that electricity prices keep going up when the cost of generating it should be going down from renewables?
Gas prices I can maybe understand. But electricity?
this post was submitted on 28 May 2026
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- Because of the energy pricing system the price of energy at a given time depends on the price of the most expensive component which is gas. So if any gas gets used at a given time then all of the energy produced at that time is priced at the same rate. The government have said that this system will be changed.
- Much of our energy is produced in Scotland but consumed in the south east. Expensive infrastructure is needed to move the electricity to where it is needed. What is worse this system won't get better over time because there is no incentive for industry to set up close to the electricity source.
- The UK has a few problems in general with building infrastructure making it expensive. These jobs are often contracted out instead of done in house by the government which can inflate costs. Additionally the planning system can be difficult to work with in the UK as residents have more power to stop infrastructure projects than in other countries.
More info here: https://m.youtube.com/watch?v=X9IKUFUtM2Q&pp=ygUIVG9tIGJyYXk%3D
https://m.youtube.com/watch?v=8-WUhBtB_CM&pp=ygUaR3JlZyBqYWNrc2luIHpvbmFsIHByaWNpbmc%3D
Funny you should ask that. Because of UK's marginal pricing system that in almost all cases is being dictated by the most expensive one (fossil fuels).