Regulation and policy

Can Capacity Market costs be recovered via a ‘mirroring’ process in the Balancing and Settlement Code?

The deliberations could come to naught if it is found that the proposed approach does not meet BSC Objectives, which are framed around effective operation of the wholesale market and transmission system (and make no explicit reference to the CM), and more fundamentally if it is ruled that it is...

Low carbon generation

Owner of a lonely heart: Intraday continuous liquidity

When the I-SEM detailed design was released, many participants were concerned about potential liquidity issues in the Intraday Continuous (IDC) market. It would seem that their concerns have merit. As the first few weeks of I-SEM have certainly displayed low volumes in comparison to the Day-Ahead Market (DAM) and three...

Low carbon generation

Paradise Lost: The changing face of Embedded Benefits

Embedded benefits have risen in value as network charges, in the round, have increased for suppliers primarily due to the required investment in electricity networks to replace ageing assets

Commercial and market outlook

This week’s Energy Spectrum overview | 14 May 2018

In this week’s Energy Perspective, we consider the current options for appealing industry code changes, following the Competition and Markets Authority (CMA) issuing its final determination on the allocation of costs in relation to the EDF Energy/SSE appeal on an electricity transmission charging rule change (CMP261), relating to alleged breach...

Home supply and services

Index of Domestic Energy Supply Costs | March 2018

Overall the data upon which the indices are based shows that a growing proportion of supplier costs come from third party charges.

Low carbon generation

Low-carbon levy costs to peak later than government expects

It is unlikely that further subsidy support for low-carbon generation will be a viable political option in the long term,

Home supply and services

Index of Domestic Energy Supply Costs | February 2018

While this trend of decreasing wholesale prices should continue into next month, the indices will begin to incorporate the third-party costs for the new charging year, where policy costs are likely to exert an upward force. On the other hand, the new regime of network charges looks likely to have...

Energy storage and flexibility

A pragmatic review of battery business cases

Given the increasing competition in the FFR space and sharpening market price signals (both wholesale and imbalance), other strategies are evolving for standalone battery assets. Perhaps for those looking to get debt into their projects, they may consider an arbitrage option as a downside case.

Home supply and services

Index of Domestic Energy Supply Costs | December 2017

In December 2017 the electricity index grew by 27 points to 1,517, a strong increase after the modest 3 point rise seen in November. It brings the electricity index to the second highest level since our records began, only falling behind December 2016 when the index peaked at 1,690 points....