Friday, August 22, 2008

Price rises

Implementing low carbon electrical systems costs money - as does the need to fix the looming energy gap (as power stations reach the end of their lives and need to be decomissioned with new ones built to replace them).

Eon's biomass Bristol biomass press release was surprisingly candid about the investment program that they are undergoing, which struck me as odd at the time.

I now realise that they were warning the general population about forthcoming price rises - which were announced yesterday.

Two things stike me:
  • The price of gas is rising by more than the price of electricity. This suggests that we would do better to minimise our dependence upon gas within electrical generation (actually this is probably too simplistic since the price they can charge is set by the market, and is only marginally driven by costs - this can be seen by Scottish & Southern putting up their prices immediately after Eon announced their price rises).
  • We really now have a choice between cheap fuel and renewable energy - we can't have cheap renewable energy. I would hope that we would keep piling on down the renewable energy path as hard as we can - after all, if a rich nation isn't going to do it, how can we expect a poor nation to?

    There really is only one way out of this problem - and a recent Friends of the Earth press release has hit the nail right on the head.
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