Power Prices Rocketing

[rangerrebew]

Power Prices Rocketing
June 25, 2021
tags: carbon tax

By Paul Homewood

 image

https://www.catalyst-commercial.co.uk/works/june-2021-energy-market-brief/

It’s rather been under the radar and seems to have attracted little attention in the media, but this year we have seen a massive rise in wholesale power prices, which currently stand 70% higher than a year ago. In part this simply reflects a recovery from pandemic lows, but as the OFGEM chart below shows, historically prices have rarely got above £60/MWh, so we are now in unknown territory. (The OFGEM chart is only up to Feb 2021).

electricity-prices-day-a

https://www.ofgem.gov.uk/energy-data-and-research/data-portal/wholesale-market-indicators

 

Power prices closely follow gas price trends, because gas-fired generation is the marginal source of supply:

https://notalotofpeopleknowthat.wordpress.com/2021/06/25/power-prices-rocketing/

[IsailedawayfromFR]

Exactly what one would expect if the primary criteria is not cost of produced product.

And unreliability also has a price