Good article explaining the future pricing of electricity and natural gas pricing

[u/PV-1082]

https://www.utilitydive.com/news/electric-power-sector-issues-to-watch-prices-demand-reliability-renewables-nuclear-vpp-transmission/736492/?utm_source=Sailthru&utm_medium=email&utm_campaign=Newsletter%20Weekly%20Roundup:%20Utility%20Dive:%20Daily%20Dive%2001-11-2025&utm_term=Utility%20Dive%20Weekender

This article has a lot of information about what is going to happen in the future with electricity and natural gas pricing. It explains how the various changes in demand for electricity in future years is going to raise prices. Seems like a good argument for installing solar.

[u/_DuranDuran_]

UK people also use far less energy than Americans, so you need to work out based on cost for need.

Ie we’re not running AC over hot summer points like in the southern states, and our houses are better insulated for the most part. Americans are very wasteful with their energy use.

[u/No_Plate_3164 → u/_DuranDuran_]

The sad reality of price being the main driving force of behaviour. I just looked it up: - U.S. 14.6 tCO2 per capita - U.K. 4.6 tCO2 per capita

U.K. is driving up taxes, cost of living & poverty to reach net zero whilst the rest are world is; ”burn baby, burn”.

[u/_DuranDuran_ → u/No_Plate_3164]

When our energy prices are pegged to the cost of gas, and green subsidies make up a tiny silver of bills, no, it’s not net zero. It’s a decade+ no not investing in the grid, projects taking years to get off the ground because of ridiculous planning requirements to appease the NIMBYs and selling the silverware off in the 80s and 90s.

[u/No_Plate_3164 → u/_DuranDuran_]

It’s much more more nuanced. Look at your energy bills; - A kWh of Gas costs me £0.05 - A kWh of Electricity costs me £0.24

Large scale gas turbines operate at ~50% efficiency (conversion of heat to electricity). So the materials costs for a kWh of electricity is £0.10p.

The other 14p… Tax is biggest contributor: - The EGL (Energy Generator Levy) is a 45% tax on energy generators selling wholesale energy over £0.075 kWh. - 8% Green energy Levy and 5% VAT - 25% Corporation Tax on Energy Generators On any profits they make

The EGL is the biggest driver cost driver at the moment. At materials costs, the EGL adds 0.025p to cost of kWh of energy. When you add salaries, profits and capital repayment the EGL contributes closer to 5p to kWh of energy cost.

The next biggest contributor is the Salaries of workers who maintain the turbine, again taxes driving up the cost: - 15% ENIC, 8%NI & 20% income tax

Finally there is a profit for the electricity generators & suppliers ~3p.

So of your 24p cost: - 10p cost of gas - 9p is taxes (Combined) - 3p is profits - 2p is wages

I work in energy - so I know the numbers well. The problem is we pile taxes on top of taxes, on top of taxes. All with different names and at different stages of the process turning gas into electricity.

UK has the 7th highest cost of electricity in the world. Our energy grid is bad… but not that bad. This is deliberate fiscal policy.

My solution is just get off the grid ASAP. I want HP next as Miliband will be looking for ways to drive up domestic gas costs next. He has already blocked all new North Sea gas extraction so we have to import it at much higher rates. A “Gas” levy will be next.

[u/_DuranDuran_ → u/No_Plate_3164]

So green levies aren’t the driver of high energy prices then? It’s other taxes?

[u/No_Plate_3164 → u/_DuranDuran_]

I didn’t say “green taxes”, just “taxes”. I hate that we have stupid names for all of our taxes. It all goes to the same place and spent on whatever.

We cut Energy VAT to 5% then add a Green Energy Levy and Electricity Generation Levy. Just be honest and have a 80% Electricity VAT rate.

15% ENIC, 8% NI, 20% Income Tax - again it’s a 43% Employment Tax (& 57% over £50k).

Politicians just like to be dishonest about how much they are taking from working people and driving up costs.