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by iso1631
1363 days ago
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Providing help to commercial consumers is essential, look at the energy usage last year and base it on that. However just paying the suppliers directly gives no incentive to invest in increasing energy efficiency - if I'm paying 70p a unit and can spend £1000 to save 3000 units it makes sense. If the government is capping it at 20p a unit then why would I bother paying to increase the efficiency? That means more needless energy use |
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In less than two years, the price of the usage of public grid electricity will have increased in the U.K. from ~£1,600 to £6,500. These useless household statistics only help to hide the fact that businesses, who do things with this electricity that don't include running a T.V. pointlessly for 8 hours a day, or heating an unoccupied room, are going to suffer more than anyone. It's easy to take the British consumer's word for it, and understand that a bill which served as a relatively small expense in a past life will now be 4x bigger than it was before, but the reality is that doing things is significantly less affordable. Manufacturing, hospitality, healthcare, public and private services etc. will all be smashed to bits, and their utilities bills aren't going up 300% but more like 500-1500%.
Is it remotely possible to push energy efficiency to the point that we are using half of the energy we were before? It's entirely possible, in my mind. With trillions of dollars of investment.
It's simply not worth it. It's better to take the money and run, if daddy warbucks is offering to give us 3.9% APR on a couple hundred billion dollar loans, than it is to pay in cash and pray for better times with improvements that come along with science and technology.
Loans on the scale that nations take add additional risk to the creditors - the risk of not paying them back is a final one.
If a million people don't pay their credit cards off in a year, it doesn't matter - the market is full of those that will. But if U.K. gilts don't pay out, then a lot more people are screwed, and there's a lot more incentive to keep that cash cow mooing.