Energy Pricing
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 [...]
The Carbon Price Floor (“CPF”) is a UK government mechanism designed to support decarbonisation by making it more expensive to generate electricity with carbon-intensive fuels. The doubling in the CPF in 2015 from £9 / tonne to £18 / tonne means the CPF now [...]
I’ve been thinking a great deal recently about how policymakers can address the challenges of stalled investment in the energy markets. My post yesterday on system tightness underlines the importance of the challenge, so I was pleased to come across this excellent paper from [...]
Does the current tight system give a flavour of the winter ahead? This week has seen high peak power prices, with day-ahead prices in the N2EX auction spiking at £999/MWh yesterday, as the system was shocked by a combination of planned maintenance, unplanned outages, [...]
Last week, to little fanfare, National Grid published its review of the UK’s electricity and gas markets for the 2015/16 winter period. Despite literally dozens of reports in the press at the start of the winter warning of the very high risks of blackouts, [...]