hedging

  • Home supply and services

    Rocketing energy prices and failing suppliers—what is happening?

    Sky high gas prices and energy suppliers going out of business have been key headlines in the news over recent weeks, but what is actually happening?  Through the COVID-19 pandemic we saw much lower gas prices, which have been surging upwards since the spring and risen rapidly through the summer, a time...

  • Home supply and services

    The default tariff cap and the law of unintended consequences

    With all eyes on the immediate challenges facing the energy supply market and the impact of the default tariff cap as a contributing factor, it is important to note that the cap for the coming winter period should not be considered in isolation and that attention will swiftly turn to...

  • Home supply and services

    From “what if?” to “what now?”

    As the UK begins its third week of lockdown, the nation’s energy sector continues to wait to see whether there will be any economic or financial support targeted specifically at end users, suppliers, network operators and fellow participants alike. Immediate issues for end users include their ability to pay their...

  • Regulation and policy

    JR goes in BG’s favour – should you be dancing?

    On Wednesday, Ofgem’s default tariff cap hit the headlines as the Office of National Statistics announced that the lowering of the cap had contributed to UK inflation reaching a three-year low. However, it was a decision issued later in the day that will have greater significance to the industry. The...

  • Power and gas networks

    Parachute: gas proxy and SEM forward markets

    The ability for market participants to hedge their power price exposure remains limited in the SEM, with a lack of forward products available for trading. This means that market participants are often left fully exposed to the spot market – meaning power contracts for almost immediate delivery – but the...

  • Low carbon generation

    Don’t let me down: I-SEM interconnector hedging

    Interconnection is important for Ireland and Northern Ireland’s security of supply; Eirgrid’s most recently published Generation Capacity Statement showed capacity deficits by 2021 without the subsea connections between GB and the island of Ireland. Last week, the Commission for the Regulation of Utilities (CRU) launched a consultation on Element Power’s...