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That’s what people have been saying in here.Who said the energy suppliers buy all of their customer energy exactly 12 months ahead?
That’s what people have been saying in here.Who said the energy suppliers buy all of their customer energy exactly 12 months ahead?
the ofgen numbers however are the weighted contract costs of the main suppliersThey aren't buying their energy 12 months in advance at one single point in time, in unison - they're doing it at the individual buying team level (of which there will be multiple within even single suppliers for different kinds of customers), constantly, as their forecast demand changes into the future.
Their weighted average cost of wholesale energy is constantly changing.
the ofgen numbers however are the weighted contract costs of the main suppliers
What ofgem numbers?
I think the up front contracts had some get out clause - like all bets are off if there is an act of Putin, exceptional situation.My point was and I’ll say it again. If these companies are buying their energy 12 months in advance why is the price cap set at 330 p/therm in Jan 2023, when wholesale prices were 210-220 p/therm in 2022?
They put prices up instantly though when wholesale price went up. It seems a bit like fuel pump, prices go up quickly but very slow to come back down.
My point was and I’ll say it again. If these companies are buying their energy 12 months in advance why is the price cap set at 330 p/therm in Jan 2023, when wholesale prices were 210-220 p/therm in 2022?
The price during Aug/Sept although high it was at a time when demand was much lower, no heating being used and peak solar output. Perhaps unit prices were too low for too long, I’ve been paying 17p+ kWh since I’ve owned this house which is 4 1/2 years, offset by the fact the majority of my electricity is off peak.The reality is most people don't realise how high the wholesale price was in August/September - if the price cap reflected those costs it would have been £15k+on avg use.
Then there was a reduction in the wholesale price in late December, but it's still 4x the normal price, and people instantly expect the old energy unit prices to return.
I want lower prices too, but it's not happening that quickly.
The price during Aug/Sept although high it was at a time when demand was much lower, no heating being used and peak solar output.
Might be a bit pedant but i dont believe they are specifically buying 12 months in advance, but need to have contracts for 12 months supply
That's an awful idea and makes no sense. We shouldn't be forcing cuts to anyone at this point. We should be fixing the system regardless of costs.Funny enough I would rather have cuts with much cheaper energy than constant expensive supply. This is on the condition it doesnt break our emergency services of course.
I agree the expensive summer was due to Europe topping up their supplies and a lack of wind. We have seen winter can cheap on dailies if we have enough wind.
I am slightly prepared for a blackout (solar battery, only 2400Wh for now) but only for emergency. I wouldn't accept blackouts for lower pricing for energy if there was the option. If it needs to be done to protect the grid = fair enough but that's it.Funny enough I would rather have cuts with much cheaper energy than constant expensive supply. This is on the condition it doesnt break our emergency services of course.
I agree the expensive summer was due to Europe topping up their supplies and a lack of wind. We have seen winter can cheap on dailies if we have enough wind.
you read the likes of the daily express too much imo.What's the country going to do once a few million EV's are trying to draw power from the grid?
Never read it in my life.you read the daily express too much imo.
1) the number of electric cars won't go up over night.
2) without a doubt our renewable energy generation and storage as well as nuclear needs to increase over the next few decades as electric cars go up.
3) even now in an energy crisis electricity regularly hits close to zero prices or even negative. this is because supply is outstripping demand. electric cars will act as a sponge to level out the grid and help it rather than hurt it.
you are right people won't be expected to all charge their cars at 4pm however. agile pricing will stop this.
but 1am when demand is low? I think the grid will be ok so long as it's improved a little.
it's already happening. as electrical substations are naturally replaced.Never read it in my life.
How are we improving the grid ready for 2030/2035?
Most EVs charge in the night when demand is very low (electric prices are often negative the demand is so low!) so it’s a non-issue. Even the national grid made a statement that EV demand will not exceed the grid capacity. https://www.nationalgrid.com/stories/journey-to-net-zero/electric-vehicles-myths-misconceptionsWhat's the country going to do once a few million EV's are trying to draw power from the grid?
Ah that's good then, no need for blackouts and other nonsense. I'm currently sitting here in a power cut so at least the electric will be a bit cheaper today.Most EVs charge in the night when demand is very low (electric prices are often negative the demand is so low!) so it’s a non-issue. Even the national grid made a statement that EV demand will not exceed the grid capacity. https://www.nationalgrid.com/stories/journey-to-net-zero/electric-vehicles-myths-misconceptions