Tuning in to the high energy costs

Sir, – Early morning radio is often very informative with the CEO of Octopus Energy, Greg Jackson, clearly explaining the energy cost rises and their causes.

Before the Russian invasion of Ukraine, the demand for gas was driven by countries coming out of lockdown and recovering from the Covid pandemic. Since the invasion Russia controls how it sells its gas by throttling back supplies to Germany and Italy who rely on it for significant levels – 40% and 60% respectively.

Most interestingly he explained how electricity prices are arrived at – for 30 minutes in each day, the highest cost source to generate the power is used across the network.

So if gas was used, and it generally is as renewable energy sources are currently lower than gas, this is the one process that is driving the cost increases in electricity.

It is also clear that green tax levies are not the cause and, due to the way the market structure works, turning on coal or oil is not the answer, as they will not drive electricity costs down.

Additionally, Greg Jackson also proposed that next year a huge insulation programme is undertaken.

We all know not needing to use energy is the cheapest solution, and that is coming from a seller.

Hopefully, Jim Spence’s opinion will change as he understands that going green is good for us all.

As energy price affects the costs of everything else and is driving inflation, Mr Jackson stated fixing

energy is top of the next PM’S job sheet.

The current temporary ministers are playing pass the parcel with the energy generators and suppliers for another four weeks until the new PM gets seated. Alistair Ballantyne. Birkhill,

Angus.

Consumers feel the heat over energy costs.