|Figure 1: Gas prices since 2000|
|Figure 2 shows little correlation between gas prices and unit price of electricity|
|Figure 3 shows good correlation between Annual Energy Payments (in orange) and Gas Prices(in red)|
The hidden force in these graphs is wind energy. It has increased every year since 2012 now making up about 23% of the electricity mix. While we are constantly told that wind energy reduces the wholesale price of electricity, there is no evidence in the actual data. With this increase in wind energy, there has been a parallel increase in system costs - grid and transmission infrastructure, back up costs, new interconnectors, and high wind penetration feasibility programmes (known as DS3).
All these costs make up the unit price of electricity. After that, the PSO Levy gets added on, another component that only ever increases (an increase has also been announced this month).
The Energy Regulator seems to be toothless in the face of an electricity sector with out of control costs, government interference and regulation. His name is now redundant, and increasingly appears more like something out of Orwell's novel 1984 where Government Departments like the Ministry for Truth do the opposite of their name.