Ecotricity Explains Why Are Green Energy Bills Affected By Fossil Fuel Prices And The Energy Crisis

Another way green energy costs are affected in this crisis comes down to something called the balancing market, and its role in national energy supply. Every energy company, whether deep green or fossil fuel brown, has to take part in the balancing market even if that company is properly hedged, like Ecotricity.

In this system, each day is divided into half-hour chunks, and every energy company has to balance its supply with its demand within these half hours every half hour of every day.

It is impossible to predict with complete accuracy exactly how much energy will be used every half hour, and there are penalty costs to cover any gap that there is between supply and demand. These balancing costs have also been reaching record highs during the energy crisis.

• Green energy costs

The way things are right now, green energy costs can’t escape the overall energy market costs. Even though renewables are a significant part of Britain’s electricity mix, we’re still being hit by the same market costs as fossil fuels, and the costs of policy failure.

This situation is madness and the government can and should be doing so much more to lift the burden off customers and fix the energy crisis. For example, a windfall tax on the North Sea oil and gas companies could make a huge difference.

What can Ecotricity do about it?

Ramping up investment in more renewable energy generation is the only meaningful way to escape the stranglehold of the fossil fuel market and make a genuine difference in the fight against the climate crisis.

Ecotricity uses profits to build new green energy sources

As a deep green energy supplier, Ecotricity uses its profits to build new sources of green energy, they call it 'bills into mills'.

This is the way to become energy-independent and price independent by making all the energy needed in Britain from the wind, sun, and sea, and sustainable, carbon-neutralized green gas from grass.