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Timeyin Akerele

๐Ÿ‘ค Speaker
1117 total appearances

Appearances Over Time

Podcast Appearances

Making Money
Why is UK Electricity So Expensive Compared to Other Countries?

the energy supply company that delivers all that, the sort of centricas, octopuses, Scottish powers of this world, they also have costs to cover sort of call centres, the metering services they provide, smart metering.

Making Money
Why is UK Electricity So Expensive Compared to Other Countries?

They also have to cover people who get into debt and can't pay their bills.

Making Money
Why is UK Electricity So Expensive Compared to Other Countries?

So they've got costs, which is about ยฃ17 in that hundred.

Making Money
Why is UK Electricity So Expensive Compared to Other Countries?

So that's about one sixth of your energy bill covers their costs.

Making Money
Why is UK Electricity So Expensive Compared to Other Countries?

Then there are some policy costs that the government have as part of the energy bill.

Making Money
Why is UK Electricity So Expensive Compared to Other Countries?

They split into two basic categories.

Making Money
Why is UK Electricity So Expensive Compared to Other Countries?

One of them is subsidies for clean power.

Making Money
Why is UK Electricity So Expensive Compared to Other Countries?

Slightly complicated because some of the clean power contracts are now we consider as part of that energy package I mentioned at the beginning, that ยฃ40.

Making Money
Why is UK Electricity So Expensive Compared to Other Countries?

But some of the older subsidies, so the renewable obligation, which was the original big subsidy program for wind and solar power in this country, plus something called the FITs, feed-in tariffs.

Making Money
Why is UK Electricity So Expensive Compared to Other Countries?

So you might remember about 15 years ago, there was a big...

Making Money
Why is UK Electricity So Expensive Compared to Other Countries?

A subsidy program, people putting solar panels on the roof and getting subsidies for them, that sort of had a legacy cost.

Making Money
Why is UK Electricity So Expensive Compared to Other Countries?

And there's the nuclear program.

Making Money
Why is UK Electricity So Expensive Compared to Other Countries?

So Sizewell, which has started construction on Sizewell, a big new nuclear power station, that's also starting to have a cost on bills as well.

Making Money
Why is UK Electricity So Expensive Compared to Other Countries?

So that is the sort of one part of the policy costs.

Making Money
Why is UK Electricity So Expensive Compared to Other Countries?

Then the other part is subsidies.

Making Money
Why is UK Electricity So Expensive Compared to Other Countries?

So there's something called the Warm Homes Discount.

Making Money
Why is UK Electricity So Expensive Compared to Other Countries?

And for a number of, in fact, millions of households who are poor, they're on means-to-benefits or pension credit, they get a subsidy on their injury bill of, I think, about ยฃ150 a year.

Making Money
Why is UK Electricity So Expensive Compared to Other Countries?

But that's paid for by everybody else.

Making Money
Why is UK Electricity So Expensive Compared to Other Countries?

So that also adds a little bit to the bill.

Making Money
Why is UK Electricity So Expensive Compared to Other Countries?

So basically, in combination, those two sets of things are another ยฃ6 out of the ยฃ100.