00:00So look, I very much recognise that this is unwelcome news for customers.
00:04What we're seeing is prices being driven up by the international wholesale price of gas,
00:08which is where we're still predominantly getting our energy from, and so that's why the cap
00:12has had to go up to adjust for that.
00:15The way that prices will ultimately get down is by reducing our reliance on gas significantly
00:23for the amount of time during the day and during the weeks and months when we're actually
00:26relying on gas.
00:27We're still over-relying on gas, and that is what is driving up those prices.
00:31So yes, we are seeing more new renewables.
00:33The more we get onto the system, the more we build up the network to accommodate those
00:37renewables, we will start to see a lower reliance on gas, and then we'll start to see prices
00:41coming down.
00:42But this does take quite a bit of investment and a bit of upgrade in the network.
00:46So we have to get the balance right.
00:48We have to protect consumers in the longer term, and that means keeping a stable market
00:52and making sure that suppliers are able to provide the customer service and invest in
00:56everything that we need to run the system.
00:58But we do bear down on profits through the price cap for suppliers.
01:02We see profits in other parts of the energy system, which we don't regulate, I recognise
01:05that.
01:06People sort of digging out gas and oil and making big money out there, but that is something
01:10that we look to the government to deal with that, and successive governments have imposed
01:15windfall taxes on those profits.
01:17But our role is to regulate the suppliers, and we do that, and we do drive down profits.
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