The rise in off-peak use perhaps? Could also be linked to reduced capacity from elsewhere through the interconnects due to local demand at their end but I suspect a smidge of price gouging.
They can justify their greed so easy. We're just the paying schmucks.
Price capped tariffs rise from 1st Jan, but this means little as the Govt rebate then kicks in to keep spend at a notional £2,500.
Wholesale electricity prices are overall higher than they have been but it has traded down a lot. Q1 was £300 yesterday but this was £900 at one point. The other foible, though, is that the shape of prices has flattened. With the drop off in availability and interconnectors flowing out rather than in we have to run gas plant overnight to cover demand, increasing overnight power prices. This makes demand side response way less valuable except on really windy days.
Let's be clear though, again, energy suppliers don't make money. The allowed gross margin in the price cap methodology is 1.5%. No industry survives on a gross margin that small. There's no gouging going on in the supply sector.
Gas producers are still making out like bandits although not as high as last year. Any renewable generators that hadn't entered into long term contracts will have had a windfall gain, but this will be taken away from 1st Jan where the Govt have introduced a levy to capture excess profits*.
* From this point a generator not fuelled by gas will have to pay 45% tax on any revenue over £75/MWh. The wholesale market is circa £300. So a wind farm fixing prices at £300 will get about £200 net, still good, but it's not a platform conducive to continued investment. I would have less of a problem with this if the revenue were used to pay for the subsidies on energy costs, but the 'cap' is in place until 2028 but consumer subsidies only look like continuing into next Summer. Where's the money going ?
