A consultation paper has been issued by the SEM Committee (SEMC) on the proposed increase to the Imperfections Charge (and Incentive Outurn). For many, such papers can seem like business as usual, but the proposed hike of the imperfections charge to almost double last year’s value is bound to attract some industry attention. We look at the proposed increase and the factors driving it and ask the question of its relationship to the new market which went live in October 2018.
Related thinking
Commercial and market outlook
Perspective | Is the design of the electricity market costing consumers money?
This article is from our Energy Spectrum publication which was published on 4 March 2022. It has become increasingly clear the existing market design is unfit for either a future net zero world or a period of fossil fuel price crisis, but what market design might be best for our...
Commercial and market outlook
Be the change you want to see – my takeaway from this year’s BIEE conference
On 13 September, I spoke at the British Institute of Energy Economics (BIEE) Energy for a net zero society conference. The conference considered the legacy of the Covid pandemic and how the means of recovery will influence the pace and direction of the net zero transition. The timing of the...
Regulation and policy
How will consumers take to Market-wide Half Hourly Settlement?
Ofgem published its decision to implement the move to Market-wide Half Hourly Settlement (MHHS) on 20 April. This confirms plans to move to new settlement arrangements over a four and a half year time period, with the Elexon-led Design Working Group’s Target Operating Model to be used as the blueprint. Meters...
Energy storage and flexibility
The future of power prices: Black swans and dragon kings
Understanding the long-term trajectory of the wholesale market is critical to new generation assets and their investment viability. Here at Cornwall Insight, we support market participants in assessing the potential outlook for wholesale power markets through our long-term market Benchmark Power Curve service. We’ve just updated our latest curves out...
Regulation and policy
Building foundations: Improving outcomes for vulnerable customers now and in the future
The standards of conduct in the electricity and gas supply licences set out that suppliers must ensure that “each Domestic Customer, including each Domestic Customer in a Vulnerable Situation, is treated Fairly”. This licence condition is principles-based and so exactly how each supplier interprets it is up to them. Although,...
Regulation and policy
Editor’s Pick | BEIS announces new measures to protect PPM customers
New measures are being introduced to protect prepayment meter (PPM) customers during the Covid-19 outbreak, BEIS announced on 19 March. PPM customers, who may not be able to add credit can speak to their supplier about options to keep them supplied. This could include nominating a third party for credit top...
Home supply and services
BBC Radio Norfolk interview: The drop in oil price and the potential effects on customers bills
Craig Lowrey, one of our Senior Consultants, was live on BBC Radio Norfolk’s airwaves discussing the recent drop in oil prices, following a dispute by Russia and Saudi Arabia over reducing oil production. Craig told listeners that last Friday in response to the Coronavirus hitting global demand for oil, there...
Home supply and services
Ring of fire: Cost of energy falling
In this week’s blog, we discuss reductions in wholesale prices from Bord Gáis' recent report, the Energy Index, released on the 14 January. The Index explores market developments and price movements in oil, gas, coal and electricity. Despite reductions in wholesale prices, which make up a substantial proportion of retail bills, energy...
