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Govt Announce Energy Bills To Increase 100% In 10 Years

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http://www.bbc.co.uk/news/business-24604218

The government has given the go-ahead for the UK's first new nuclear station in a generation.

France's EDF Energy will lead a consortium, which includes Chinese investors, to build the Hinkley Point C plant in Somerset.

Ministers say the deal will help take the UK towards low-carbon power and lower generating costs in future.

Critics warn guaranteeing the group a price for electricity at twice the current level will raise bills.

"For the first time, a nuclear station in this country will not have been built with money from the British taxpayer," said Secretary of State for Energy Edward Davey.

The two reactors planned for Hinkley, which will provide power for around 60 years, are a key part of the coalition's drive to shift the UK away from fossil fuels towards low-carbon power.

Ministers and EDF have been in talks for more than a year about the minimum price the company will be paid for electricity produced at the site, which the government estimates will cost £16bn to build.

The two sides have now agreed the "strike price" of £92.50 for every megawatt of power Hinkley C generates per hour.

'Competitive'

This will fall to £89.50 for every megawatt of power if EDF Group goes ahead with plans to develop a new nuclear power station at Sizewell in Suffolk. Doing both would allow EDF to share costs across both projects.

Mr Davey said the deal was "competitive" with other large-scale clean energy and gas projects.

"While consumers won't pay anything up front, they'll share directly in any gains made from the project coming in under budget," he added.

It relates to this however the online article doesn't highlight the £92.50 is double the current wholesale price according to what was being said this morning on TV. I do love his comment at the end Orwell would be proud, I'll share from the project coming under budget by paying double the current market rate.... And of course we'll get to pick up the clean up bill.

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http://www.theguardian.com/environment/2013/oct/20/nuclear-power-station-hinkley-edf

The strike price – the guaranteed rate to be paid for electricity produced at the Somerset site – will be announced as £92.50 on Monday, following two years of complex negotiations. That is nearly twice the market price of energy. The price is guaranteed for 35 years and will rise in line with inflation.

EDF was thought to have started negotiations demanding a figure of £100, with the Treasury's gambit being £80.

The deal just gets even better!

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Nice to see them achieving their 2% inflation target there then... 10% YOY for the next 10 years. These clowns should board the train for the circus!

Assuming my arithmetic is correct, 100% over ten years is more like 7.18% per year.

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After what's happened /happening in Japan I would rather sit by a open fire in a field to keep warm than subject my kids to a nuclear world where accidents / terrorism/natural disasters are a real threat . Reading more and more horror stories day by day not reported in the main stream media as what is really happening now around Japan .

Here is today's bit

http://www.theherald.com.au/story/1848433/the-ocean-is-broken/?cs=12

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I suppose the rate of return will encourage other builders which I think is good. But yes looks like rising prices. The daily Express choose not to go with this story?

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http://www.bbc.co.uk...siness-24604218

It relates to this however the online article doesn't highlight the £92.50 is double the current wholesale price according to what was being said this morning on TV. I do love his comment at the end Orwell would be proud, I'll share from the project coming under budget by paying double the current market rate.... And of course we'll get to pick up the clean up bill.

this is crazy. plus the wholesale prices in 70% nuclear France are even lower

also US Westinghouse claims that their AP1000 reactors can provide electricity for about £30 per MWh

high house prices, energy prices, food prices ... all businesses will leave UK sooner or later

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Assuming my arithmetic is correct, 100% over ten years is more like 7.18% per year.

or perhaps it is Torries cunning plan to inflate home owners from overpriced housing

if they can engineer 7% inflation pa the high house prices are resolved in 15 years

only problem is that it can overshoot for hyperinflation or businesses will leave UK and £ will fall

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Freezing energy prices for 18 months = socialism and a terrible thing

Paying a socialist nation (France) and a communist nation (China) a guaranteed price over 40 years = what?

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Assuming my arithmetic is correct, 100% over ten years is more like 7.18% per year.

7.18% is lower than we've come to expect! Camoron said he was going to get tough with the energy suppliers.

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Freezing energy prices for 18 months = socialism and a terrible thing

Paying a socialist nation (France) and a communist nation (China) a guaranteed price over 40 years = what?

:lol::lol::lol:

And remember price fixing is baaadd m'kay... unless it's the private energy companies doing it as opposed to the state of course.

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I suppose the rate of return will encourage other builders which I think is good. But yes looks like rising prices. The daily Express choose not to go with this story?

...still if it carries on people will be living in their micro energy efficient cells costing 100% more in ten years to buy as well as to heat/keep....that is progress for you. ;)

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Assuming my arithmetic is correct, 100% over ten years is more like 7.18% per year.

Yes, one nuclear power plant that will only provide 7% of our future electricity...... :o

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Just watching BBC news and the govt have annouced that energy bills are expected to go up by 100% in ten years. Which why they have guaranteed the new nuclear plant builders double the current amount.

Good news for (French) taxapyers.

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If you are thinking of going off grid to avoid the costs, they will still come for you for money!

In Spain:

"Mr Serrasolses, the secretary of an association promoting the use of solar energy, SEBA, is referring to the government's proposal for a tax solely on those who generate their own electricity."

http://www.bbc.co.uk/news/business-24272061

US power companies lobbying for same thing.

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France's EDF Energy will lead a consortium, which includes Chinese investors, to build the Hinkley Point C plant in Somerset.

...

Ministers say the deal will help take the UK towards low-carbon power and lower generating costs in future.

....

"For the first time, a nuclear station in this country will not have been built with money from the British taxpayer," said Secretary of State for Energy Edward Davey.

.....

"While consumers won't pay anything up front, they'll share directly in any gains made from the project coming in under budget," he added.

So what exactly are the huge price hikes to date for? They always claim they're for the energy companies to invest in cheap clean energy for the future. Is it just for a few windmills. That doesn't sound very good value.

It sounds as if it's just another rip off.

Edited by billybong

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If you are thinking of going off grid to avoid the costs, they will still come for you for money!

In Spain:

"Mr Serrasolses, the secretary of an association promoting the use of solar energy, SEBA, is referring to the government's proposal for a tax solely on those who generate their own electricity."

http://www.bbc.co.uk/news/business-24272061

The spannish tax plan is for those who are connected to the grid but also generate their own power locally. The argument being that they still need the grid infrastucture, but they're not paying for it. Those off grid would not be charged IIRC.

Q

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US power companies are concerned about the numbers of people opting for solar even though the market is still tiny in the US.

But weather conditions in large parts of the US means that solar could have a drastic impact on the profits of the power companies in the years ahead. So appaently they are looking at ways of charging customers who use solar and/or lobbying for a tax on solar.... which, presumably, will go to the power companies.

I have no doubt that the same will come here in the UK and hence it will make the cost benefits of UK solar for the average users to be even more grey.

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http://www.bbc.co.uk/news/business-24604218

It relates to this however the online article doesn't highlight the £92.50 is double the current wholesale price according to what was being said this morning on TV. I do love his comment at the end Orwell would be proud, I'll share from the project coming under budget by paying double the current market rate.... And of course we'll get to pick up the clean up bill.

http://www.expatica.com/fr/news/french-news/britain-edf-strike-deal-on-nuclear-project-source_276362.html

Yup posted this a few days ago

The agreed guaranteed price for the electricity provided was 92.5 pounds (109 euros, $148) per megawatt hour.

According to the source, this is nearly twice the prevailing rate in Britain.

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