Posted on: 15/01/2021
A cold snap for the UK drives up power prices and BM price hits 20 year record high
Following our Monthly Industry Briefing and Power Market Update webinar, Head of Sales Trading, Fanos Shiamishis and Trading Analyst, Leo Burdorf provide a summary of last month’s energy market movements. They recap on the impact colder winter temperatures had on UK power prices along with the UK Brexit announcement on Christmas Eve. They also reveal the highest system imbalance price seen in 20 years that we saw on the 8th January.
Seasonal Power Prices
In early December, power prices were ...
Posted on: 11/01/2021
RIIO 2: What do Ofgem’s network price controls mean for business energy consumers?
After Ofgem’s publication of the next round of network price controls (RIIO 2) Head of Pricing, Tom Putney outlines the importance of the determination as well as what it means for business consumers looking forwards.
What is RIIO 2?
Revenue = Incentives + Innovation + Outputs (RIIO) is a price control framework which governs the revenues that the UK’s Transmission and Distribution Network Operators are allowed to make. RIIO 2 replaces the previous first price control (RIIO 1), running from...
Posted on: 18/12/2020
Accelerating Net-Zero: Sustainability in the COVID-19 Era
Account Director at the Carbon Trust, Mark Reynolds outlines how businesses are continuing to increase their sustainability credentials regardless of the COVID-19 pandemic.
Despite this year’s many challenges, climate change remains high on the agenda of leading businesses.
Consumer interest in climate change continues to grow, with increasing numbers of people asking how they can make a difference in both their personal and working lives.
COVID-19 has done nothing to change this trend. If...
Posted on: 16/12/2020
Renewables Obligation: Final Mutualisation Figure & Consultation on Scheme Future Released
As Ofgem have announced this year's final figure to be mutualised under the Renewables Obligation and BEIS have published a new consultation on the future of the scheme, Renewables Trading Analyst, Chetan Patel rounds up the key points in this latest blog post.
Renewable Obligation – 90% Mutualisation Threshold in CP19 reached
For the third consecutive year, Ofgem has notified the industry that there will be mutualisation of costs under the Renewables Obligation (RO) for the 2019/20...
Posted on: 11/12/2020
Balancing Mechanism hits £1000/MWh and Markets Rebound on Vaccine News
Head of Sales Trading, Fanos Shiamishis and Trading Analyst, Leo Burdorf review directions of travel in power markets across the month of November, explaining the price spikes we saw as winter conditions affected system requirements.
Balancing Mechanism (BM)
Flexible generation saw 33.4GWh of accepted offer volumes and 5.4GWh of accepted bid volumes in the BM in November. This compares to accepted offer volumes of 19.4GWh and bid volumes of 4.8GWh in October. Wind generation saw bid...
Posted on: 04/12/2020
Generator Revenue Streams: November Highlights
Senior Business Development Manager, James Marsh details some of the key takeaways from the latest webinar in our Generator Revenue Streams Series.
Capacity Market (CM)
This winter represents a peak in the T-4 clearing price for generation projects in the CM, receiving around £22.50/kW, before a significant drop in value for next winter of £8.40/kW. Prices are not expected to bounce-back again until 2023, albeit still at lower levels than seen previously. For winter 2024, government have...
Posted on: 26/11/2020
Targeted Charging Review: TNUoS Bandings From April 2022
Following on from our latest Non-Commodity Costs Webinar Head of Pricing Tom Putney explains the new bandings for TNUoS charging set to come into effect from April 2022, as well as an indicative look at the charges different consumers might expect to pay.
Regular readers of the SmartestEnergy blog, or at least those of you interested in changes to non-energy costs, might remember one of my previous blogs on the subject of Ofgem’s Targeted Charging Review and it’s impacts on the way that...
Posted on: 20/11/2020
Future Flexibility: ODFM and the New Normal for Generators
As we move into the winter months Head of Markets, Boz Bozhkov takes a look back at the successes of the Optional Downward Flexibility Management (ODFM) service; how SmartestEnergy’s contributions helped to balance the energy system; and why services like ODFM will endure into the future.
National Grid’s ODFM service was introduced this year in order to help the System Operator manage an increasingly common scenario during summer months whereby there is too much generation on the grid for the...
Posted on: 06/11/2020
Energy Markets Fall as England Enters Lockdown 2.0
Head of Sales Trading, Fanos Shiamishis and Trading Analyst, Leo Burdorf outline the reasons for recent losses across energy markets and volatility in system prices for the month of October.
Power and Gas:
With the Winter-20 power contract now expired, the focus turns to the November, December and Q1-21 contracts. With increased chances of a cold snap forecast for this December, gains made early in October saw Q1-21 add around £1.40/MWh in the first week - trading around the £52/MWh mark...
Posted on: 30/10/2020
Triad Season 2020
As Triad season is about to begin, Strategic Account Manager, Mark Cox takes a look at what it means for business consumers and how they can make cost savings by reacting to times of peak demand.
Triads are the three highest half hourly periods of demand (usually between 4pm-7pm) throughout November to February, separated by 10 clear days. These three half hourly periods cover the cost of running the transmission network, also known as Transmission Network Use of System (TNUoS) charges at peak ...