Energy Pricing
As the country largely remains locked down, electricity demand continues to be low, and renewable generation high, particularly in the current sunny weather. This is creating challenges for National Grid ESO in balancing the electricity system, and so it is introducing new tools to [...]
I wrote recently about the increasing incidences of negative electricity prices, driven by the limited ability to store electricity meaning that to all intents and purposes, electricity is consumed as it is generated. However, electricity is not the only market where prices can turn [...]
Last week I participated in a webinar hosted by Energy Live News on how the covid-19 on users, brokers and suppliers, which covered some interesting points not mentioned in my previous post on the subject. Market liquidity on the prompt is largely unchanged Gas [...]
One of the consequences of the energy transition and the increase in renewable generation on the electricity system has been the growth in negative electricity prices, where production is curtailed and/or consumers are paid to take surplus generation. These events are still relatively rare [...]
The June 2019 capacity auction for delivery next winter cleared at the record low price of 77p /kW, with 129 units securing contracts covering 3.6 GW of capacity. The previous T-1 auction in February 2018 cleared at £6 /kW for 5.8 GW of capacity, [...]
The rapid deployment of renewable generation, and its impact on the electricity system in terms of transmission capacity management, balancing intermittency and frequency control has triggered the need for an entirely new suite of flexibility products. At the same time, the opportunities to earn [...]
Ofgem is exploring major changes to electricity network charging and access arrangements that will affect all users of the system from large businesses to households, from large transmission-connected to generation to behind-the-meter storage operators. In this second post on network charging and access reform, I [...]
Electricity network charging is facing its most significant reforms since the creation of the current NETA/BETTA system. Ofgem believes that current charging methodology creates distortions in the market and incentivises undesirable behaviours. This is because the entire electricity network structure is undergoing significant change, [...]
Last week Ofgem published its “minded to” decision on electricity network charging reform as part of its Targeted Charging Review (“TCR”) into the way in which residual transmission charges are recovered from consumers, and on certain “embedded benefits”: Charges for using the electricity network [...]
There has been much hype of late surrounding the advent of “time-of-use” (“ToU”) energy tariffs for domestic consumers with some claiming consumers will be able to make large savings while others suggest consumers might be ripped off by “surge pricing” at times of high [...]