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By Sir John Redwood on July 5, 2025

The government does not understand the energy market.

They say if the market stopped making gas generated power the price determinant for electricity all those renewables would take the price down.

Instead it would usually put the price up.

Most renewables are supplied with a guaranteed price under the old Renewable Obligations Scheme or the newer contracts for difference.For most years of these schemes the renewables price is higher than buying gas based electricity. There are also the other green taxes and subsidies putting up power bills.

Renewables are unreliables .

Solar delivers on average just 10% of stated capacity. Onshore wind 30%.

Gas power is made dearer by having to keep it on stand by.

The UK has dear electricity because it put in so many heavily subsidised wind and solar generators. It now faces a huge bill for more grid and storage to try to get them to work better.