Karen Rowe’s Post

Below is our second Insight on the UK's Review of Electricity Market Arrangements (REMA) in which we look in more detail at the proposals for locational pricing and the alternatives. As Anna set outs, locational pricing would involve splitting GB into different areas ('zones'). Each zone would have a different wholesale price, reflecting the balance of supply and demand, and the network capacity, in each location. So areas like Scotland, where there is high supply and low demand, would have a lower electricity price than the South East of England, where the opposite is true. What does this mean for generators, investors and customers? What does the benefits/risk analysis look like?

I have already been involved in a transaction where the perceived commercial "threat" of the introduction of locational pricing de-railed a lengthy and complex negotiation of a long-term power offtake contract for a renewable generation asset in the UK. The parties simply couldn't find a way around the re-pricing risk, particularly where project financing was involved. It's hard to see larger projects being developed in future lower pricing zones without the safety net of a CfD. #energytransition #REMA

In our second Insight on the UK's Review of Electricity Market Arrangements (#REMA) we look in more detail at the proposals for locational pricing and the alternatives. Locational pricing would involve splitting GB into different areas ('zones'), each with a different wholesale price. We look at what this could mean for generators, investors and customers, and whether the benefits outweigh the risks. https://lnkd.in/ehXBMvbm #electricitymarket #lmp #renewables Richard Goodfellow Matthew Williams Sophie Hiley Martin Stewart-Smith Karen Rowe Anna A.

Navigating Forward Electricity Price Shock - Essential Strategies for Cost and Load Management In our latest write up, we outline three essential strategic actions that can help mitigate electricity costs. Engaging more proactively with real-time market conditions and implementing load management strategies can result in cost reductions exceeding thirty percent by focusing on critical periods that represent less than two percent of operational time. Action 1- Optimize Contractual Agreements Action 2- Focus on High-Cost Periods Action 3- Leverage Real-time Pricing and Grid Controls Read the full article on our site to learn more: https://lnkd.in/gxMbJf-E

Many of the questions we get revolve around reducing energy spend. This write up does a good job of pointing out three fundamental actions that you can look at and take action on that will help. Even if you're not in a nodal power market area, many of the same principles can result in savings. As always- we're here to discuss how we can best help you navigate your specific energy plan. #ERCOT #energymanagement #energystrategy #loadmanagement #energyprocurement #yallneeddata

Last week’s wholesale performance report published by the AER confirmed that unreliable coal-fired power stations contributed to significant price events throughout May this year. Electricity prices exceeded $5,000/MWh 19 times in May and June – with consistently high prices resulting in the cumulative price threshold being breached in NSW after the first week of May. These high prices were driven by scheduled and unplanned outages of Eraring, Vales Point and Bayswater power stations, and two planned network outages in New South Wales. Nexa has previously outlined how extending the life of coal-fired power stations is not a guaranteed route to reliability or affordability – as demonstrated by these repeated shutdowns. The AER’s report provides a clear indication for the NSW Government to get the Electricity Infrastructure Roadmap back on track - delivering the transmission, generation and storage required to provide reliable and affordable electricity to consumers without relying on unreliable coal-fired generation. Read the AER’s report here: https://lnkd.in/gXA42zxT Smart Energy Council Climate Energy Finance Tim Buckley Stephanie Bashir Jordan Andreas Ferrari Wayne Smith

Are you paying more than expected for utilities despite locking in the "best" fixed rate? High fixed fees might be to blame. A lot of contract comparison websites like to promote low per unit pricing as the "best deal," but if you're an energy-conscious household then the cost per kWh or GJ will impact you less than the admin fees. Even a few dollars extra can make a big difference! That's why it's important to think about how much energy you actually use and factor in consumption when calculating total electricity and natural gas costs. Jotson can help: https://lnkd.in/g8ZC4JGG #UtilitySavings #EnergyCosts #ENMAX #DirectEnergy #EPCOR #SaveMoney

The DESNZ’s second consultation on possible changes to the UK Energy Markets (REMA) closed this week.  (https://lnkd.in/ed-w8_-c) DESNZ is consulting on reforms on the Contract for Difference (CfD) and the capacity market, as well as flexibility and zonal pricing. Proposals for changes to CfD scheme and Capacity Market were a large part of the consultation, but sadly, REMA only maintains a watching brief over the evolution of the Corporate Power Purchase Agreement (CPPA) market. In the short term it means change and uncertainty, with many industry players seeing an impact. I would be interested to hear your thoughts? Will possible changes increase investor and developer confidence and accelerate renewable deployment? Are the CfD proposals good, bad or indifferent? Do the possibilities for zonal pricing cause uncertainty or might it help encourage new projects?

💜 £3.1bn is owed to suppliers 💜 Prepayment now costs the same as credit 💜 Certain households can not be switched to pre payment 💜 Customers must be given options before being moved to pay pre payment meters 💜 Energy is the cheapest it has been for 2 yrs https://lnkd.in/efb4_GSA #energycosts #MarketTrends #costoflivingcrisisuk #CheaperEnergy

The quarterly energy Price Cap has changed from 1 Jul 24 The new #PriceCap is £1,568 The level is based on typical use of an average household on their supplier’s standard default tariff It's a cap on energy unit price, not a cap on total bills More ⬇️ https://ow.ly/X68i50SrvMT