House of Lords joins call for electricity market reform

Last week the UK’s House of Lords Select Committee on Economic Affairs joined the calls for electricity market reform, in a critical report: The Price of Power: Reforming the Electricity Market saying that the Government’s energy policy objectives conflict with each other, and have led to a situation where supply margins are tight at the…

Read More

Transmission charging: an out-dated cost-recovery framework distorts the market

Transmission charging is far from simple even in the traditional model of electricity networks, as illustrated by the diagram below. In principle, the costs of bringing electricity from large units of generation to consumers is socialised across users via three main tariffs: Transmission Use of System Charges (“TNUoS”), Balancing Services Use of System Charges (“BSUoS”) and…

Read More

German Energiewende: a billion euro mistake?

Germany’s Energiewende and the resulting rapid expansion of renewable energy in Germany has been held out as the model for other nations to follow, but there are growing doubts as to its effectiveness. As I have noted before, the decision to exit nuclear power in the aftermath of the Fukushima disaster has meant that at…

Read More

National Grid skirts calls for an independent system operator…for now

Last summer the House of Commons Energy and Climate Committee raised questions about the conflicts of interest inherent in National Grid’s role as the electricity system operator and recommended that the government should create an independent SO to mitigate these concerns (described in my previous blog post here). Not surprisingly, National Grid was opposed to…

Read More

IFA outage: so far in 2017 this does look like a good thing

Last month I wrote about the IFA outage and suggested that the historic trend of exporting in periods of high UK demand might mean the outage is positive for UK capacity margins. So far 2017 has seen some significant system tightness, with a number of plants being offline (EDF even has several nuclear reactors out…

Read More