Wholesale electricity prices are rising dramatically. Prices per megawatt hour have risen from around £60 to £160 over the last 7 months. Yesterday morning spot prices hit a record high of £400 per MWH.
The graph below details the rise in forward contracts for Winter 21/22
If these prices don’t reverse soon- and we don’t think they will- then average household electricity bills are likely to increase from about £800 p.a. to £2500- £3500 over the next few months.
This is one part of the cost of lockdown. £600 billion of money printing has inevitably devalued the £. Prices of real things, like electricity, increase as a result.
Why are we focusing on this? Partly because of the obvious economic hardship it will cause. This is also the start of the endgame not just for the Conservative government but for the whole state apparatus. The power of the state comes from its ability to create an endless stream of £s which it can then use to pay for schools, hospitals, vaccines, police, etc. If the pounds it creates become worthless then it can’t fund these activities and its power is gone.
Rapidly rising electricity prices are a forewarning of the coming ( hyper) inflation the only real question is how long that will take to feed through into all prices across the economy.
Over the coming weeks we will hear endless explanations for rising electricity prices. These are likely to include it’s too hot, too cold or not windy enough along with the devious Russians are restricting gas exports to Europe. None of this will be the real cause.
The rapidly rising electricity prices we are about to suffer are a result of a debt based government and banking system that are totally out of control.
We need to start from scratch and redefine with what government and banking should look like and they both need to be significantly smaller.
Freedom Alliance are developing radical and exciting economic and business policy proposals which will focus on returning financial power to individuals, families and small businesses. If you would like to be involved in this or other areas of policy development please contact us at [email protected]