The costs of the energy system are connected indirectly with the income to the energy system through market mechanisms. Were the ‘money in’ attempts to stick to income to the system, and ‘money out’ attempts to stick to the final payments and costs to the system as a whole, this chapter attempts to trace the CONTINUE READING
06
Money out – Cost structure
This section addresses what needs to be paid for in running the energy system – where the money goes out of the energy system. The way money flows between parties within the energy system is discussed here. Main costs include: Generation of electricity Power station construction Operation and maintenance Fuel Purchasing of other energy Import CONTINUE READING
Money In – Income Structure
Money goes into the energy system primarily through consumers paying their bills. This section therefore begins with examining how these bills are structured, and how pricing is set. Dissecting the energy bills The price of energy Domestic Most domestic electricity and gas tariffs are in two parts: A simple cost of energy that is a CONTINUE READING
Money Flows
QUESTIONS: Where does money and value flow in the energy system? What needs to be paid for? How is this changing? How could this be done differently? How is the energy system financed? Who profits? In the 2015 general election, Ed Miliband promised to freeze energy bills. This may have been a vote-winner, but from CONTINUE READING