UK Grid Improvements Will Add Even More Cost To Bills
Why has it taken so long for The Telegraph to publish this story? I was reporting about it in July!
From the Telegraph:
A record £90bn is to be loaded on to household and business energy bills to help pay for grid upgrades linked to Ed Miliband’s net zero blitz.
Energy regulator Ofgem has approved dozens of investment proposals put forward by the UK’s three transmission grid operators: National Grid, SSE and Scottish Power.
This will allow them to build more pylons and substations across the UK before adding the cost to consumer bills.
In total, Ofgem predicts that households will pay £108 extra annually by 2031 to help pay for grid upgrades, which is likely to infuriate communities across the country as thousands of new pylons are built.
An initial £28bn investment package was approved by Ofgem on Thursday, with the total £90bn including a £17.8bn spending pledge by National Gas and other gas network companies.
Ofgem argues that, alongside maintaining grid resilience, these investment costs will ultimately deliver savings of around £80 on an average domestic bill.
This will primarily be achieved through reduced reliance on foreign gas and decreasing payments to wind farms to switch off, otherwise known as “constraint costs”.
However, it also concedes that bills will rise significantly well before any savings become apparent.
Full story here.
As usual, the Telegraph understate the true cost to householders. While electricity bills may rise by £108pa, households only use a third of total electricity. The total nationwide cost will be about £9bn.
One way or another, we will all end up paying this full cost, via taxes, higher prices, lost jobs etc. The total cost will end up being more like £300 a year.
Sadly the Telegraph also failed to challenge this blatant lie by OFGEM:
Ofgem argues that, alongside maintaining grid resilience, these investment costs will ultimately deliver savings of around £80 on an average domestic bill.
This will primarily be achieved through reduced reliance on foreign gas and decreasing payments to wind farms to switch off, otherwise known as “constraint costs”.
OFGEM know full well, or should do, that international gas prices are falling and gas power is now substantially cheaper than offshore wind.
Moreover constraint payments will not decrease – instead they will skyrocket. With a tripling of wind and solar capacity, there will be many days when there is too much electricity being generated compared to what is being used.
No amount of new transmission lines will alter this fundamental, meteorological fact. OFGEM chief, Jonathan Brearley, inadvertently gave the game away when he revealed the real reason for these upgrades:
“This investment will support the transition to new forms of energy”.
It is nothing to do with saving people money; it is all about meeting ‘net zero’ targets.
See more here notalotofpeopleknowthat
Bold emphasis added
Header image: Energy Pool