UK energy prices are soaring and propagandists want to sell you a false reason why | George Monbiot

"By far the cheapest component of our energy supply is the electricity produced by renewables, principally wind and solar. It's the same story worldwide. But the price of electricity does not reflect the mix of sources. It is set at almost all times by its most expensive component. And what might that be? Oh yes, fossil gas."

"Because of a system called marginal cost pricing. This means that, while the majority of what comes through the wire is supplied by renewables and nuclear power, electricity is sold on the wholesale market at the price (the marginal cost) of the power source of last resort, which fills the last remaining gaps in supply: fossil gas."

"Though the contribution of fossil fuels to our electricity supply in the UK has fallen from 73% in 2000 to 27% today, gas still sets the price to a greater extent than in almost any comparable country. In the UK, this happens 98% of the time, while the EU average is 39%."

UK electricity prices have soared despite renewable energy reaching 47% of supply, up from 3% in 2000. Claims that renewables cause high bills are false. Renewables, particularly wind and solar, represent the cheapest component of energy supply globally. Electricity prices are determined by marginal cost pricing, where wholesale prices are set by the most expensive power source needed to meet demand: fossil gas. Although fossil fuels' contribution to UK electricity fell from 73% to 27% since 2000, gas still sets prices 98% of the time, compared to the EU average of 39%. This pricing mechanism, not renewable expansion, explains elevated energy costs.

Read at www.theguardian.com