Why does electricity cost so much in UK?

I am waiting for upgraded prices to come in before I continue with the low-cost housing.

Meanwhile, I thought I would look into the cost of providing domestic electricity. This will cost 24.67 pence per Kilowatt hour from 1st April which is made up as follows (according to AI Overview):-

Cost of electricity from generators, purchased in the wholesale market –         9.8p/Kwh

Cost of national grid and local networks for distribution –                                6.7p/Kwh

Operator costs of running the system –                                                               4.2p/Kwh

Government clean energy levy –                                                                         1.7p/Kwh

VAT –                                                                                                                  1.2p/Kwh

Supplier profit –                                                                                                   1.1p/Kwh

In addition, suppliers can charge each customer up to 57.21p/ day for running their businesses.

Obviously, the biggest individual cost is the wholesale price set by the market which was set up when the CEGB was denationalised. In France, where the system is effectively controlled through EDF by the French government, a lot of their electricity is produced by their 56 ageing nuclear reactors, the cost is reportedly less than 5p/Kwh. About 10% of Britain’s supply comes from this source, giving the French a good profit.

Next week I will tell you about the current price of producing electricity by the different generating systems. If you wish to get in touch with me about any of the matters I raise in my blogs, you can contact me through my website or at mike@mikehillier.co.uk.

Mike.