Hold on. So if Ovo provide “100% renewable electricity as standard for everyone”…
…then why has it suddenly gotten so expensive?
🤷♂️
Solved
If OVO provide 100% renewable electricity, why are wholesale prices so high?
Best answer by M.isterW
Updated on 08/01/25 by Abby_OVO
The problem is the way the electricity wholesale price is set, which is outside OVO's control.
The price is set each half hour to the price of the last unit required to meet demand. At the moment that last unit is almost always generated by gas, so is expensive. That means every unit of electricity costs the same as a unit of electricity generated by gas and we don't see the saving we should be seeing from the low cost of renewables.
The govt could tax the generation companies who are making huge profits from this but they have chosen not to. They could also reform the wholesale electricity market, which they are looking at.
+1You can ask the same of eon and EDF (nuclear). Generators feed into the grid, it all gets mixed, supplier buy from the grid at inflated prices.
apparently it’s legal!
+3- Carbon Catcher***
- 1258 replies
Write to your MP. The new PM has said she’d address this hasn’t she? Now’s the time to put on some pressure.
+3- Carbon Catcher***
- 1258 replies
Of course it’s complete nonsense that we’re only on 100% renewable 24/7 as everything would lose power when the wind stops blowing…
+4- Carbon Catcher***
- 411 replies
- Answer
Updated on 08/01/25 by Abby_OVO
The problem is the way the electricity wholesale price is set, which is outside OVO's control.
The price is set each half hour to the price of the last unit required to meet demand. At the moment that last unit is almost always generated by gas, so is expensive. That means every unit of electricity costs the same as a unit of electricity generated by gas and we don't see the saving we should be seeing from the low cost of renewables.
The govt could tax the generation companies who are making huge profits from this but they have chosen not to. They could also reform the wholesale electricity market, which they are looking at.
1992 4 bed detached house. Solar PV + battery, Zappi EV charger, Mitsubishi Ecodan ASHP and i-life2 fan assisted radiators.... No gas 😊
+1- Plan Zero Hero
- 7888 replies
Indeed. The only way to bring a more level playing field would be to split the market so that suppliers like OVO could break off and just buy energy on a market where fossil fuels are banned, leaving anyone who still wants to use them anyway to continue buying on another market where they’re allowed.
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