From the Torygraph...
Households paid the equivalent of £2m an hour to gas-fired power
stations on Wednesday after low winds and freezing temperatures left electricity grid bosses scrambling to keep the lights on.
As freezing weather swept into the South East, the National Energy
System Operator (Neso) warned that it expected power supplies to become particularly tight between 4pm and 7pm.
The crunch forced grid operators to pay huge sums to gas power plant
owners to keep them running. The cost will ultimately be borne by
households and businesses through their bills.
At one stage, they agreed to pay the Rye House power station, in Hertfordshire, the equivalent of £1.8m per hour, transparency data shows.
Three gas-fired units in Connah’s Quay, North Wales, were also paid a combined £2m per hour.
Neso declined to comment on the payments.
It comes as cold weather is expected to spark increased electricity consumption as more people stay indoors, watch television and use their
gas or electric heating.
At the same time, a sharp drop in wind power and low availability of
power interconnectors with Europe is also putting more pressure on the grid.
In response, Neso has issued a warning to electricity generators and suppliers that it is looking to bolster supplies.
There is no suggestion there will be blackouts or that power cuts are “imminent”, a spokesman said.
But Neso added this morning: “In the short-term, we would like a greater safety cushion between power demand and available supply.” ===================================================
Gotta lurve those renewables.
No wonder fossil duel companies love them.
The way the electricity racket is set up ensures that every producer gets
the same rate, so they all will have benefitted from this.
“Insight
Published Thursday, 14 September, 2023
Under the ‘marginal cost pricing system’, the wholesale price of electricity is set by the most expensive method needed to meet demand (usually burning gas).
[…]
In each half-hour trading period, each electricity generator bids the price it will accept to generate electricity, according to how expensive the electricity is to produce.
The bids are accepted in ‘merit order’ until the demand for electricity is
met; the cheapest first, and the most expensive last. However, the price of all units of electricity is set according to the bid price of the most expensive unit needed to meet projected demand: this is the ‘marginal cost’.”
<https://commonslibrary.parliament.uk/why-is-cheap-renewable-electricity-so-expensive/>
From the Torygraph...
Households paid the equivalent of £2m an hour to gas-fired power
stations on Wednesday after low winds and freezing temperatures left electricity grid bosses scrambling to keep the lights on.
As freezing weather swept into the South East, the National Energy
System Operator (Neso) warned that it expected power supplies to become particularly tight between 4pm and 7pm.
The crunch forced grid operators to pay huge sums to gas power plant
owners to keep them running. The cost will ultimately be borne by
households and businesses through their bills.
At one stage, they agreed to pay the Rye House power station, in Hertfordshire, the equivalent of £1.8m per hour, transparency data shows.
Three gas-fired units in Connah’s Quay, North Wales, were also paid a combined £2m per hour.
Neso declined to comment on the payments.
It comes as cold weather is expected to spark increased electricity consumption as more people stay indoors, watch television and use their
gas or electric heating.
At the same time, a sharp drop in wind power and low availability of
power interconnectors with Europe is also putting more pressure on the
grid.
In response, Neso has issued a warning to electricity generators and suppliers that it is looking to bolster supplies.
There is no suggestion there will be blackouts or that power cuts are “imminent”, a spokesman said.
But Neso added this morning: “In the short-term, we would like a greater safety cushion between power demand and available supply.” ===================================================
Gotta lurve those renewables.
No wonder fossil duel companies love them.
On 09/01/2025 10:53, The Natural Philosopher wrote:
From the Torygraph...
Households paid the equivalent of £2m an hour to gas-fired power
stations on Wednesday after low winds and freezing temperatures left
electricity grid bosses scrambling to keep the lights on.
As freezing weather swept into the South East, the National Energy
System Operator (Neso) warned that it expected power supplies to become
particularly tight between 4pm and 7pm.
The crunch forced grid operators to pay huge sums to gas power plant
owners to keep them running. The cost will ultimately be borne by
households and businesses through their bills.
At one stage, they agreed to pay the Rye House power station, in
Hertfordshire, the equivalent of £1.8m per hour, transparency data shows.
Three gas-fired units in Connah’s Quay, North Wales, were also paid a
combined £2m per hour.
Neso declined to comment on the payments.
It comes as cold weather is expected to spark increased electricity
consumption as more people stay indoors, watch television and use their
gas or electric heating.
At the same time, a sharp drop in wind power and low availability of
power interconnectors with Europe is also putting more pressure on the
grid.
In response, Neso has issued a warning to electricity generators and
suppliers that it is looking to bolster supplies.
There is no suggestion there will be blackouts or that power cuts are
“imminent”, a spokesman said.
But Neso added this morning: “In the short-term, we would like a greater >> safety cushion between power demand and available supply.” >>===================================================
Gotta lurve those renewables.
No wonder fossil duel companies love them.
It sounds a lot, but spread across the 10s of millions of households in
the UK, it's not much each.
On 09/01/2025 16:44, Spike wrote:
The way the electricity racket is set up ensures that every producer gets
the same rate, so they all will have benefitted from this.
“Insight
Published Thursday, 14 September, 2023
Under the ‘marginal cost pricing system’, the wholesale price of
electricity is set by the most expensive method needed to meet demand
(usually burning gas).
[…]
"This is known as the ‘spot market’. Their share of trades has fallen over
time and is thought to be around 30% in 2022 (PDF)."
In each half-hour trading period, each electricity generator bids the price >> it will accept to generate electricity, according to how expensive the
electricity is to produce.
The bids are accepted in ‘merit order’ until the demand for electricity is
met; the cheapest first, and the most expensive last. However, the price of >> all units of electricity is set according to the bid price of the most
expensive unit needed to meet projected demand: this is the ‘marginal
cost’.”
<https://commonslibrary.parliament.uk/why-is-cheap-renewable-electricity-so-expensive/>
On 09/01/2025 10:53, The Natural Philosopher wrote:
From the Torygraph...
Households paid the equivalent of £2m an hour to gas-fired power
stations on Wednesday after low winds and freezing temperatures left
electricity grid bosses scrambling to keep the lights on.
As freezing weather swept into the South East, the National Energy
System Operator (Neso) warned that it expected power supplies to
become particularly tight between 4pm and 7pm.
The crunch forced grid operators to pay huge sums to gas power plant
owners to keep them running. The cost will ultimately be borne by
households and businesses through their bills.
At one stage, they agreed to pay the Rye House power station, in
Hertfordshire, the equivalent of £1.8m per hour, transparency data shows. >>
Three gas-fired units in Connah’s Quay, North Wales, were also paid a
combined £2m per hour.
Neso declined to comment on the payments.
It comes as cold weather is expected to spark increased electricity
consumption as more people stay indoors, watch television and use
their gas or electric heating.
At the same time, a sharp drop in wind power and low availability of
power interconnectors with Europe is also putting more pressure on the
grid.
In response, Neso has issued a warning to electricity generators and
suppliers that it is looking to bolster supplies.
There is no suggestion there will be blackouts or that power cuts are
“imminent”, a spokesman said.
But Neso added this morning: “In the short-term, we would like a
greater safety cushion between power demand and available supply.”
===================================================
Gotta lurve those renewables.
No wonder fossil duel companies love them.
It sounds a lot, but spread across the 10s of millions of households in
the UK, it's not much each.
On 09/01/2025 16:44, Spike wrote:
The way the electricity racket is set up ensures that every producer gets
the same rate, so they all will have benefitted from this.
“Insight
Published Thursday, 14 September, 2023
Under the ‘marginal cost pricing system’, the wholesale price of
electricity is set by the most expensive method needed to meet demand
(usually burning gas).
[…]
"This is known as the ‘spot market’. Their share of trades has fallen over time and is thought to be around 30% in 2022 (PDF)."
Nick Finnigan <nix@genie.co.uk> wrote:
On 09/01/2025 16:44, Spike wrote:
The way the electricity racket is set up ensures that every producer gets >>> the same rate, so they all will have benefitted from this.
“Insight
Published Thursday, 14 September, 2023
Under the ‘marginal cost pricing system’, the wholesale price of
electricity is set by the most expensive method needed to meet demand
(usually burning gas).
[…]
"This is known as the ‘spot market’. Their share of trades has fallen over
time and is thought to be around 30% in 2022 (PDF)."
Was the spot market not being used on the night in question?
It’s in winter where we have peak demands and the greatest use of the spot market. It might be 30% overall, but that disguises how much it’s used in critical periods, with consequential £benefit to the producers.
On 09/01/2025 18:01, Spike wrote:
Nick Finnigan <nix@genie.co.uk> wrote:
On 09/01/2025 16:44, Spike wrote:
The way the electricity racket is set up ensures that every producer
gets
the same rate, so they all will have benefitted from this.
“Insight
Published Thursday, 14 September, 2023
Under the ‘marginal cost pricing system’, the wholesale price of
electricity is set by the most expensive method needed to meet demand
(usually burning gas).
[…]
"This is known as the ‘spot market’. Their share of trades has fallen >>> over
time and is thought to be around 30% in 2022 (PDF)."
Was the spot market not being used on the night in question?
I assume it was being used. Has someone suggested it was not?
It’s in winter where we have peak demands and the greatest use of the
spot
market. It might be 30% overall, but that disguises how much it’s used in >> critical periods, with consequential £benefit to the producers.
To some producers, not "every producer".
Exelon seem to suggest 4Gw from the spot market in recent peaks https://bmrs.elexon.co.uk/market-index-prices
On 10/01/2025 09:45, Nick Finnigan wrote:
On 09/01/2025 18:01, Spike wrote:AIUI most electricity is purchased in terms of long term contracts, but if those fail to deliver, or demand exceeds contracted amounts the spot rate
Nick Finnigan <nix@genie.co.uk> wrote:
On 09/01/2025 16:44, Spike wrote:
The way the electricity racket is set up ensures that every producer gets >>>>> the same rate, so they all will have benefitted from this.
“Insight
Published Thursday, 14 September, 2023
Under the ‘marginal cost pricing system’, the wholesale price of >>>>> electricity is set by the most expensive method needed to meet demand >>>>> (usually burning gas).
[…]
"This is known as the ‘spot market’. Their share of trades has fallen over
time and is thought to be around 30% in 2022 (PDF)."
Was the spot market not being used on the night in question?
I assume it was being used. Has someone suggested it was not?
It’s in winter where we have peak demands and the greatest use of the spot
market. It might be 30% overall, but that disguises how much it’s used in >>> critical periods, with consequential £benefit to the producers.
To some producers, not "every producer".
Exelon seem to suggest 4Gw from the spot market in recent peaks
https://bmrs.elexon.co.uk/market-index-prices
is simply raised until someone responds and says 'I will generate (or shed) that much electricity for that price'.
And by some stupidness of CfDs wind farms get paid the same for that period.
AIUI most electricity is purchased in terms of long term contracts, but
if those fail to deliver, or demand exceeds contracted amounts the spot
rate is simply raised until someone responds and says 'I will generate
(or shed) that much electricity for that price'.
And by some stupidness of CfDs wind farms get paid the same for that period.
On 09/01/2025 18:01, Spike wrote:
Nick Finnigan <nix@genie.co.uk> wrote:
On 09/01/2025 16:44, Spike wrote:
The way the electricity racket is set up ensures that every producer gets >>>> the same rate, so they all will have benefitted from this.
“Insight
Published Thursday, 14 September, 2023
Under the ‘marginal cost pricing system’, the wholesale price of
electricity is set by the most expensive method needed to meet demand
(usually burning gas).
[…]
"This is known as the ‘spot market’. Their share of trades has fallen over
time and is thought to be around 30% in 2022 (PDF)."
Was the spot market not being used on the night in question?
I assume it was being used. Has someone suggested it was not?
It’s in winter where we have peak demands and the greatest use of the spot >> market. It might be 30% overall, but that disguises how much it’s used in >> critical periods, with consequential £benefit to the producers.
To some producers, not "every producer".
Exelon seem to suggest 4Gw from the spot market in recent peaks https://bmrs.elexon.co.uk/market-index-prices
Nick Finnigan <nix@genie.co.uk> wrote:
https://bmrs.elexon.co.uk/market-index-prices
That website has only an ‘Accept All’ button for cookies, so I didn’t open
it any further.
On 10/01/2025 11:25, Spike wrote:
Nick Finnigan <nix@genie.co.uk> wrote:
https://bmrs.elexon.co.uk/market-index-prices
That website has only an ‘Accept All’ button for cookies, so I didn’t open
it any further.
If you click on 'VIEW COOKIES LIST' there is an option to "DECLINE ALL" (even if it is impractical to read the list of cookies).
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