As countries grow and their economies improve the cost of goods will continue to increase. This not only applies to housing and products that we buy,
As countries grow and their economies improve the cost of goods will continue to increase. This not only applies to housing and products that we buy, but service provider costs as well. It is a part of life that we all must deal with, no matter where we live.
With that being said we can look at the UK and see that prices for 2022 have risen by record amounts. The reason for this is that the energy regulators have increased the amount of the tariffs that can be charged to wholesalers. When their costs go up, the costs passed down to the public that uses the energy will also climb upwards.
That is the easy answer to the question in the title, but it is not that simple. You can blame the government if you want, but they pass laws and regulations that are meant to help the majority, not just one sector. Granted, the entire country uses power, so this increase has affected us all, but you need to step back and look at it from a bigger picture.
There are countries around the world that are in the midst of an energy crisis, such as Zimbabwe. Renewable resources are the answer for these countries, and it is a lesson that all countries need to follow along with. Changing power plants to using these resources is not an easy task, or a cheap one. It will take money to convert everything over. And then it will still be necessary for many of the producers to use a combination of renewable energy and power produced by resources taken from the ground, such as coal.
Another problem that has occurred throughout the last couple of years that has affected the prices of energy are the companies that went out of business. The other suppliers in the UK had to step up and take on more customers to keep the country supplied with power. This costs them money, which of course is passed down to you.
However, if you think that your current supplier is taking advantage of the situation, check out the options available to you at the iSelect electricity comparison site. You do not owe your loyalty to any specific supplier. You need to worry about you and your family, so go with the company that offers you the best service at the best price.
Back to why prices are increasing in the UK, though. The combination of power suppliers going out of business and the shift towards using renewable resources has increased their cost of operating, and their production. Since the grids are having to supply bigger areas, and more people, the costs to the producer and wholesalers have increased. As you would think, an increase to them means an increase to every customer that uses power.
One more aspect of the energy crisis that has fallen upon the UK can be tracked back to the global energy issues that can be found in every country. Droughts and heat waves have increased the power draw from air conditioning units, and the extreme cold in other areas has increased the heat being used. The energy consumption of other countries should not affect the people in the UK, but the entire world is connected through an intricate system of economics and inflation amounts.
These connections do not necessary affect consumers in direct ways, but indirectly all people across the world will feel the energy crunch. The economy of one country is connected with their neighbour’s economy, and they are both connected to the global economy.
The bottom line is that if the energy prices do not increase, more energy producers and suppliers will go out of business. Which in turn, will increase the workload for the others, increasing costs to them which are handed down to you, their consumer. It may be an inconvenience for you to have to pay more for your energy usage, but when you look at the big picture the increases can be seen as an inevitable part of life today.