Aging power plants will keep electricity bills high until 2030

Uncertainty over the start date for Hinkley Point C is expected to push up prices. Photo: EDF/AFP

“In their current form, power plants will become less reliable, especially gas and nuclear, their operating times will be reduced, and they will require higher prices in the capacity market to cover costs,” analysts say.

< p>New, cleaner technologies that could benefit demand, such as battery storage, are also now more expensive.

“Additionally, there is uncertainty about extending the life of some nuclear power plants and the start date operation of Hinkley Point C will help keep prices high.

“While solutions such as batteries can meet some of the growing demand for electricity, they can be expensive and generators require higher payments to cover costs,” said Tom Faulkner, head of product development at Cornwall Insight.

At the same time, upgrading aging power plants to continue producing electricity comes with its own costs that are ultimately passed on to consumers.”

Electricity bills have changed. after Russia's war in Ukraine hit gas prices.

Under Ofgem's price cap regime, average household bills are expected to fall by around 7% from July, leaving the typical electricity bill paid by direct debit, will drop to £1,568. per year.

However, Cornwall Insight expects that prices could begin to rise again from October.