Energy bills will remain significantly higher for at least the next six years.
That’s according to a new analysis by Cornwall Insight, which suggests this is due to the ageing of gas-fired power stations and delays in building new nuclear plants.
The cost paid to electricity generators to maintain a stable supply will be at least £51 per kilowatt annually until the end of the decade.
Currently, this rate is £18 per kilowatt.
The capacity market scheme pays subsidies to conventional power stations to stay open as a backup for renewable energy suppliers, securing most of the needed energy four years in advance.
A few days ago, the Chair of energy regulator Ofgem warned that British energy bills are unlikely to decrease significantly over the next decade.
Copyright © 2024 Energy Live News LtdELN
Make sure you check out the latest Net Hero Podcast episode:
Net zero is a way to cut your costs and help the planet, so what’s stopping you? Often, it’s just the right help and advice. That’s what we will provide at the Big Zero Show this July. Workshops, expert speakers, case studies and exhibitions. Plus, networking with 1500 peers and potential customers. Register for free now.