Price Rise Due To Oil Prices

  • phillmorgan28's Avatar
    Level 1
    Hi,

    According to the about section of the website (https://www.eonnext.com/about), Eon Next provide 100% renewable energy to their customers. So, I would like to ask Eon Next why prices are being increased for ANY of their customers.

    Please do correct me if I'm wrong, but the wholesale price of wind has not increased has it? Wind isn't suddenly more expensive because tanks are rolling around? I mean, I understand renewable sources of energy require maintenance, and their are fossil fuel costs involved in producing parts and transporting them etc. However, I do find it VERY suspicious that prices are rising by the same amount as "non-renewable" companies.

    Please can a representative of Eon explain, or are our "renewable tariffs" simply a baseless claim?

    Thank you
  • 1 Reply

  • meldrewreborn's Avatar
    Level 18
    The renewable elemnt of electricity generation is mixed with all the other elements and so is not isolated for delivery to customers. The wholesale market is driven by the highest prices the generators can acheive, and is largely driven by the most expensive supply needed to make up the total.So lets say gas is the most expensive at the moment. The other producers price their offer just below the gas price, because they can while at same time as being assured their offing will be needed and taken up. There is no point in producing electricity if you can't actually sell it.The generators are sometimes also suppliers of retail energy - like EON, EDF, Scottish Power, British Gas. They treat their supply arm differently to their generating arm, so currently are making little money on domestic supplies because wholesale costs are higher that they can charge under the price cap, and at the same time making excess profits from the generating arm.The price caps look backwards for pricing and so in time the suppliers will make up the losses being made now.
    Current Eon Next and EDF customer, ex Zog and Symbio. Don't think dual fuel saves money and don't like smart meters.