Energy Pricing
The press and politicians are currently full of outrage at the announcement by British Gas of a 12.5% increase in its electricity prices from September, describing the rise as "extortionate", "unjustified" and a "slap in the face" to families, and once again there are [...]
On the 12th July, Ofgem issued an open letter launching the process for establishing the next round of price controls, known as "RIIO-2", for the GB gas and electricity systems. These price controls determine the amount of allowable expenditure for network companies (which includes [...]
The market has been waiting with bated breath for Ofgem’s decision on its proposed changes to the embedded benefit regime, since its statement in March that it was “minded to” implement a change to the CUSC that would limit the demand residual ("TDR") component of [...]
Retail price caps continue to make the news, as "dealing" with rising energy prices is seen as a popular move in the run up to the General Election. As has now been argued many times, including in this blog, price caps are unlikely to [...]
Last week the Conservative Party has announced a manifesto commitment to an energy price cap, despite warnings from across the industry, including in this blog, that the idea is unlikely to work, and may have significant unintended adverse consequences. In his recent address to [...]
Once again we hear in the news the ominous threats of energy price caps in response to retailers raising their prices, and while the desire of politicians to respond to consumer anger is understandable, this is a temptation they need to resist. The dangerous [...]
The question of electricity market competitiveness is never far away, particularly when any of the Big 6 suppliers raise their prices. The level of concern about potential anti-competitive behaviour by the big suppliers who dominate the GB market prompted an investigation by the Competition [...]
In my last post I wrote about the increasing cost of environmental policies on the back of prices rises from npower and a capacity auction that will secure capacity for next winter at over three times the price of the scheme it replaced. Since [...]
The cost of electricity is in the news once again with the move by supplier npower last week to increase prices by 15%, arguing that higher wholesale prices together with increased non-commodity costs could no longer be absorbed by the supplier. Last week also saw [...]
Energy policy is frequently described in terms of the “trilemma”: decarbonisation, security of supply and affordability. Delivering this three-pointed objective requires a three-pointed approach: technological, policy and financial innovation. None of these in isolation can deliver the energy policy objectives. Technological innovation delivers new [...]