Analysis of the new energy bill price cap from the Energy and Climate Intelligence Unit (ECIU) has found that while the financial support for renewables via bills has on average been the same during the energy crisis as in the years before, wholesale costs driven up by gas prices will have added £3,000 by the end by this autumn.

This is more than seven times the cost of schemes that support renewables, with newer fixed-price wind farms (under Contracts for Difference agreements) subsidising bills when wholesale prices are high, and the costs of older schemes (RO and FiTs) set to fall from this year onwards.

Of the £3,000 increase, the majority, £1,800, comes from higher gas bills. The effect on electricity bills is smaller because, whilst gas prices have pushed up wholesale power prices, renewables are helping to reduce the UK’s reliance on gas power plants.

Commenting on the analysis, Jess Ralston, Energy Analyst at the ECIU, said: “Let’s be very clear on this, it is gas that has been driving up energy bills over the past four years and it continues to do just that. Families are struggling because the UK is heavily reliant on gas for both electricity generation and home heating, and the price of gas is volatile.”

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