Okay, but why is it expensive? The insinuation of your comment is that wind energy is to blame for high costs, and nuclear is the reason for low costs. But in the US, some of the cheapest energy is in states with wind higher than the UK at 60%, such as Iowa.
Perhaps the blame is because the previous Tory government banned onshore wind, the cheapest form of wind energy, a ban only lifted recently under Starmer? I don't know the reason, but it deserves a more serious analysis.
My comment wasn't implying that importance of wind in the UK energy mix (or lack of investment in nuclear) is specifically the reason for high costs but I agree that government policy is indeed to blame.
As to whether the cause is Tory ban of onshore wind- I'm skeptical. I don't think wind is any cheaper than gas once you include the necessary energy storage capacity- especially when there is huge amounts of gas sitting under the north sea which the new Labour government is planning to ban pumping: https://www.forbes.com/sites/gauravsharma/2024/07/12/sudden-...
Even offshore wind is about twice as cheap as electricity from north sea gas, onshore about twice as cheap again.
Also, they're banning looking for new gas, the cost of which is 91% subsidised.
> The new 80% Investment Allowance will mean businesses will overall get a 91p tax saving for every £1 they invest – providing them with an additional, immediate incentive to invest. This nearly doubles the tax relief available and means the more investment a firm makes, the less tax they will pay.
This is why. Prices are set by what electricity retailers think the "market will bear". Unlike suppliers bidding in which the lowest price wins, our electricity prices are set by the highest bidders.
No, they're not set by the highest bidder. They're set by the tenth lowest bidder, except that the number isn't ten.
If the number of suppliers needed happens to be ten, then the ten lowest bidders prevail, and the highest bidders lose out. The ten lowest bidders all get the rate offered by the tenth lowest bidder, ie. if a supplier bids at its own cost, it'll likely make a profit (or not get a contract at all).
Perhaps the blame is because the previous Tory government banned onshore wind, the cheapest form of wind energy, a ban only lifted recently under Starmer? I don't know the reason, but it deserves a more serious analysis.