Quote:
Originally Posted by Bibio
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HOW is it costing more to produce electricity than it was 4 years ago????????
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On the assumption you're asking because you don't understand, factors to consider include:
- Fuel cost (Seen the price of gas and coal recently?)
- Demand increase
- Maintenance (keeping existing power stations and networks running is becoming more challenging as they age)
- Investment financing (raising the money for new power stations and new networks being built doesn't come for free)
- Asset replacement cost (old power stations are worn out and need replacing, old overhead lines and substation equipment needs replacing eventually)
- Green development incentives (increasing introduction of wind/solar instead of conventional fossil fuel)
- Staffing costs (workers expect/demand pay rises)
- Inflation
Now whether the rise in prices should be smaller is a different (and still legitimate) question but it's not simply a case of the government or private business owners profiteering.
Arguably there's nothing to stop anyone going off-grid if they want. Except they tend to complain it's too expensive! So, in the face of that irony, is on-grid such a bad deal in fact? Perhaps the affordability problem is rooted elsewhere?