No explanation for energy price rise

As someone who has been in the energy sector for almost two decades I am often annoyed by the lack of detail given by news outlets for the power bill price rises.

It's not complex, it's actually pretty easy to understand.

Base load generation is diminishing in terms of total supply. Because we are using more energy while they are closing down old coal power stations. These power stations supply power 24/7 and run at a fairly static cost.

Though now rather than offer a flat price they make very little during the day due to abundant solar and charge high rates in the evening. In the evening, dinner time, is the period of highest demand on the grid when there is no solar. During this time we need gas generators to turn on and the base load generators to meet the high demand.

They set a high price because they can and that is what their shareholders want. In some cases gas won't come on until there is a risk of under supply and prices spike.

Your energy retailer can't expose you to that usually so they will try to balance the pricing they give you. They make good margin on daytime energy use and sometimes lose money on your evening energy use.

They key takeaways are that while the bulk of the evening generation is in the hands of only a few companies they are going to charge whatever they like driving up costs. Cheap energy during the day isn't the cause of power bills rising as many in the media say it is. Wholesale prices often go negative during the day to illustrate my point.

This is why disbursed batteries are the best way for cheaper power. Once you have batteries moving cheap energy from the day to the evening peak you have lots of competition and we all know want lots of competition causes.

Batteries are now coming down in price like solar panels did thanks to all the EV manufacturing.

Oh the other thing that really sucks they never talk about. Renters, who generally can't get solar, pay for their power during the day. Meaning retailers make most of their margin of those hardest hit by cost of living. While those that own their home usually have solar and just use energy in the evening when it is effectively subsidised by day time users.... What a system.

The government should give all renters a 4kw solar system if they want to help with cost of living.