I have long thought that the scribblings of the green wonks at the Climate Change Committee need greater scrutiny that they routinely get. That might be beginning to happen given the recent coverage of the Committee's Sixth Carbon Budget report. This says:
"Where homes are sufficiently well-insulated, it is possible to pre-heat ahead of peak times, enabling access to cheaper tariffs which reflect the reduced costs associated with running networks and producing power during off-peak times."
Happily this relates to 2033 onwards as ought to be obvious as currently most UK homes are not sufficiently well-insulated and low(er) cost electricity is usually only available after midnight and then not to everyone.
In this brave new shivering world, electricity will only be lower cost (and never cheap) when there's an over-supply for whatever reason with the normal supply / demand rules being inverted. The reality will be that price will be used to regulate demand. That is, when the grid cannot cope (because there is no longer any gas-supply when renewables run out) the price will be hiked and people will turn down (or off) the heating. Indeed, we might not be given the choice. I know this sounds a bit paranoid, but what do you think "smart" meters are really for?
But will there really be no gas supply to help when the renewable grid cannot deliver? Well, by 2035 (2030 if you're the Labour party) the plan is to remove all fossil fuels from the electricity grid. And how well his that plan going? As I write this early on a windless September morning we're using gas to make 52% of our electricity (and even coal is being used: 1%).
My advice for 3035 (as I might not be around then) is don't be poor. Meanwhile, if you can, you might buy woolly jumper futures while the price is reasonable.
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