Countdown to Fridays OFGEM Q4 Price Cap Announcement

[Joeboy]

As an aside, has there been any announcements on zero wind curtailment recently? I would assume that curtailment is at zero what with the supply to Europe from UK?

[spread-tee]

On top of that OGB, the cost of producing gas hasn't risen much, supplies are tight, that is all, but the price shoots up. So looking forward to some time when supplies are tight of many basics due to climate breakdown and we see a very bleak picture unless we get shot of this market driven ideology.
Or more likely we are headed for a mass die-off

Desp

[Stinsy]

As an aside, has there been any announcements on zero wind curtailment recently? I would assume that curtailment is at zero what with the supply to Europe from UK?

Curtailment of wind-generated electric has usually been more to do with our ability to transmit power from where it is generated (offshore) to where it is consumed (South East) than generation exceeding demand. Given that most of the interconnects are on the south coast (they were originally intended for us to import electric remember) I see curtailment being the same as before.

[Joeboy]

As an aside, has there been any announcements on zero wind curtailment recently? I would assume that curtailment is at zero what with the supply to Europe from UK?

Curtailment of wind-generated electric has usually been more to do with our ability to transmit power from where it is generated (offshore) to where it is consumed (South East) than generation exceeding demand. Given that most of the interconnects are on the south coast (they were originally intended for us to import electric remember) I see curtailment being the same as before.

Which is sad and futile.

[nowty]

Ironically curtailment could even increase if no one can afford to use it and there is a drop in demand.

[CrofterMannie]

You would think that those of us who live in locations where there is significant generation might be incentivised to use power during periods of curtailment. But no that's far too sensible.

It's not an exact comparison but I know a few people in northern Norway (anywhere much North of Bergen really) and they pay about 3p/kWh largely because the interconnectors to take power south don't exist or can't cope.

[nowty]

You would think that those of us who live in locations where there is significant generation might be incentivised to use power during periods of curtailment. But no that's far too sensible.

It's not an exact comparison but I know a few people in northern Norway (anywhere much North of Bergen really) and they pay about 3p/kWh largely because the interconnectors to take power south don't exist or can't cope.

That is in fact happening if you live near one of Octopus Energy's owned wind turbines.

https://octopus.energy/octopus-fan-club/

[spread-tee]

The best analogy for people not familiar with it is:

When you sell your house do you sell it for what it cost to build?
Or the going market rate that's determined by others around you.

Same thing for energy market.

I take your point but it's not a great analogy, your house may be on the market for more than it cost to build, but it wont be on the market at the same price as the most expensive house, so people can shop around. Also most folk have quite a lot of control as to when they purchase a new house, not so with utilities, most of us need them all the time, with the possible exception of Nowty Most of us only sell an overpriced house a few times in a lifetime, utilities on the other hand...........ongoing kerrchinngg

Desp

[Oldgreybeard]

The best analogy for people not familiar with it is:

When you sell your house do you sell it for what it cost to build?
Or the going market rate that's determined by others around you.

Same thing for energy market.

I take your point but it's not a great analogy, your house may be on the market for more than it cost to build, but it wont be on the market at the same price as the most expensive house, so people can shop around. Also most folk have quite a lot of control as to when they purchase a new house, not so with utilities, most of us need them all the time, with the possible exception of Nowty Most of us only sell an overpriced house a few times in a lifetime, utilities on the other hand...........ongoing kerrchinngg

Desp

That's a good point. The house price analogy is a bit like the price of all the 2 bedroom farm workers cottages on a farm being forced to be sold at the same price as the 5 bedroom farmhouse, because the price is fixed at the highest price.

In the case of electricity, if 40 generators bid to sell at 5p/kWh, and then a gas generator comes along and bids at 20p/kWh, everyone gets 20p/kWh. This means that the majority of generators get paid way OTT. It's actually worse, as there is an element of gambling involved. The price rises right up until the very last second when the last to bid sets the price everyone gets paid. It's a bit like being at an auction with 50 lots, where the sale price of all the lots is set not by their bids, but by the bid for the last lot of the day, where this is always rigged to be the highest.

[spread-tee]

It is almost like the market was designed with big shareholders in mind..........perish the thought.

Desp