How much impact does the MSC have now?

As prices in the market remain volatile, a recent drop in the price of wholesale gas has caused the Market Stabilisation Charge (MSC) to be triggered. The MSC was introduced in April 2022 as a short-term intervention in an unstable market, designed to protect suppliers that have hedged in advance from the risk of undercutting, should wholesale prices significantly fall.

On 14 November, the MSC was triggered for the first time since it took effect as a condition in the supply licence under Standard Licence Condition (SLC) 24A, on 14 April 2022. In this ‘Chart of the Week’, we look at where wholesale gas and electricity prices has been since June 2022, in comparison to threshold for triggering the MSC.

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