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40% drop in coal-fired power affects business energy prices

no powerAfter Amber Rudd’s announcement to close all coal-fired power plants by 2025 in line with her energy policy ‘reset’, the UK has already made headway with a 40% fall in generation levels since last year.

“It cannot be satisfactory for an advanced economy like the UK to be relying on polluting, carbon intensive 50-year-old coal-fired power stations. Let me be clear: this is not the future. We need to build a new energy infrastructure, fit for the 21st century.” Rudd said.

Further plant closures are set for early next year – including Scottish Power’s 2.3GW Longannet plant, the 1.9GW Eggborough plant, and SSE’s 1GW Ferrybridge and 0.5GW Fiddler’s Ferry assets – raising concerns over the UK’s capacity margin as demand increases. While coal-fired power is being phased out, there aren’t enough clean energy developments to make up the deficit in power leaving the UK’s security of supply in a precarious position and raising fears over future energy affordability.

Coal-powered generation contributed 5.5 TWh of power generation in November while wind power produced 2.6 TWh.

Tighter capacity constraints mean rising energy bills for both businesses and households. As demand increases, we’ll be forced to call upon reserve capacity and back up power plants to ensure a secure power supply. Wholesale power prices typically spike in the event of an energy shortfall as generators inflate their rates, taking advantage of their monopoly of the market.

We advise consumers is to lock in their business energy contracts so they can protect their business against future price hikes. Business Juice can help. As a business energy broker, we compare over 30 suppliers to get you the best deal on your gas and electricity.

For an instant business energy quote, give Business Juice a call on 0800 051 5770, email us at quote@businessjuice.co.uk or use our contact form.

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