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Adding data centre electricity costs to domestic energy bills?

Lucia · 2025-01-07T15:58:39Z

Here's another Ofgem Consultation and it closes January 9th. Unless I am misunderstanding it - Ofgem is proposing to add the costs of 'Energy Intensive Industries' to domestic electricity bills to be included in the Price Cap. Data Centres anyone? ***** "In April 2024, the UK government implemented the British Industry Supercharger NCC scheme. It offers Energy Intensive Industries (EIIs) 60% compensation on electricity network charges for using Great Britain’s electricity grid. Licenced electricity suppliers are obligated to fund this compensation scheme. They are expected to begin incurring costs from April 2025. The government aims to redistribute these costs among non-EII customers. This includes domestic consumers." ***** Why on earth should already overburdened electricity consumers pay for 'energy intensive industries'? We don't get a share of the business, we have the highest electricity prices in Europe, we have huge energy poverty, and Ofgem just keeps dumping more charges onto people while ignoring gas consumers... Here's the link I hope Ofgem gets a lot of objections - this is an extraordinary example of socialising the costs while privatising the profits.

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Lucia

(@lucia)

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Topic starter 10/02/2025 1:52 pm

@transparent

@lucia - are you noting all this?

I am indeed (and thank you for tagging me) but restraining myself until later as I have soooo much on plate. 😁

Some quick points.

Beware the hype - think of the 90s and the dotcom bubble (that went bang) - there's a huge amount of spin around all this.
Data centres consume vast amounts of energy, water and need high speed fibre optic access.
The idea that they will 'boost economies' is part of the hype - many come with huge subsidies, tax breaks and companies who keep their 'holding companies' in tax-havens.
The employment claims are in the realms of fantasy. The coding is mostly outsourced to Asia and Africa.
The big silicon valley tech companies are born and bred out of (and still very much part of) the US defence industry - security is a major issue here apart from anything else. Data centres are potential targets.
Data.... who owns it? Who controls it? Who sells it to whom? Be very careful about how easily this is surrendered in the name of 'efficiency' or whatever. I just sat through Palantir's latest board offering - disturbing to say the least.

That report in the Guardian this morning is part of the lobbying for 'locational pricing' that's being fought and spun like heck. Be wary, despite what is said in the various lobbying efforts, the consumer is not a consideration.

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Lucia

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Topic starter 22/03/2025 7:37 pm

Posted by: @lucia

↑

Meant to add this but have been buried under piles of work.

My submission:

"The proposal to add the cost of an additional allowance for the Network Charge Compensation (NCC) Scheme to consumer energy bills under the Price Cap is an extraordinary proposal that treats consumers with contempt.

The cost of electricity in the UK is already extreme and the endless additional weighting of levies onto consumers imposes a burden that is far too heavy. We already spread the cost of billing defaults onto other consumers, increasing the unit price of electricity, which in turn increases the burden and increases the defaults.... tautology in policy form.

I strongly oppose this proposal. It is not for already plundered consumers to have to bear the costs of business subventions. This is a further example of socialising costs while privatising profits."

~0~

Short and sweet/sour.... Can't help but think Ofgem 'consultations' are box-ticking exercises. 😏

I forgot to ask - did anyone else who responded to the consultation get an email from Ofgem weeks later saying their submission was 'accepted'?

It came to me so long afterwards I'd forgotten about it. I assume they will email again when they have something to publish. I'm not holding my breath.. 🐖✈️

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Jancold

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23/03/2025 9:37 am

@lucia Yes I got one

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Toodles

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23/03/2025 10:02 am

@jancold I received an acknowledgement too. Toodles.

Toodles, he heats his home with cold draughts and cooks his food with magnets.

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Majordennisbloodnok

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24/03/2025 3:51 pm

I got an initial email acknowledging receipt of my submission but not any kind of "acceptance".

Certainly not seen anywhere any discussion around or rebuttal of the legitimate concerns raised, though.

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