A variety of factors contribute to the rocketing energy prices such as: limited oil, coal and gas supply, Hinkley power point C almost being complete, Brexit, all the main energy suppliers being foreign owned etc.
The burning of fossil fuels has a really bad impact on the environment but the materials used are limited. These materials are limited and are in very high demand which results in the prices being risen drastically to solve this problem. The negative aspect of this is a large proportion of families in the UK are facing fuel poverty, meaning they are being forced to chose between being fed and having electricity in their homes. This is especially a massive problem in the city of Manchester, UK.
Although there is currently a lot of uncertainty around Hinkley Point and how it will affect energy bills, it has been estimated that once it is all complete energy prices will be greater. Hinkley Point once completed will generate 7% of the UK’s electricity and this 7% will cost twice the current market price.
Another terrifying factor that will contribute to the rise in energy prices is that DECC (Department of Energy & Climate Change) has estimated that climate and energy policies will add 37% to the retail cost of energy prices paid by homes in 2020. This is a dramatic rise which will have an instant and devasting impact on the majority of energy bill payers.
Many people are worried about how Brexit will affect the prices of energy bills. Although there is a lot of uncertainty around the subject, here is a summary of points in which leaving the EU will push up energy prices in the UK:
- Leaving the EU ETS (EU Emission Trading System)
- Not having a replacement body for Euratom (European Atomic Energy Community)
- Increased transportation costs and a reduction in EU investment
There are even more factors that are causing the rise in energy bills, and there is one thing for certain that they aren’t going to come back down. Solutions have been put into place to help people reduce their carbon footprint, meet the net-zero targets, and help bill payers be in control.