Lee Drummee Analyst at Cornwall Insight featured on Power Technology discussing the effects of fall in energy demand, caused by the UK Covid-19 lockdown on the Balancing Mechanism.
He explained that the fall in energy demand because of the Covid-19 lockdown was always expected to increase the £/MWh rate of demand-based industry charges with total costs levied against a lower charging base. However, the addition of the overall rise in Balancing Mechanism volumes and other balancing services actions has pushed BSUoS even higher.
With exceptional market conditions and the Electricity System Operator noting up to £500m in additional BSUoS costs over the summer period, on 19 May SSE Generation raised CMP345 to defer the additional Covid-19 BSUoS costs.
Lee Drummee, Analyst
