Stand-by power prices set to reach premium levels_3
18 July 2012
Electricity from idle stand-by generating equipment will increasingly fetch a premium price as suppliers seek to escape exposure to volatile prices on the spot market, according to industry experts.
“The New Electricity Trading Arrangements (Neta) will encourage large energy users to reconsider their standby generation that they traditionally kept for back-up supply,” said Graham Oxley, special markets analyst at Yorkshire Electricity. “In the past, the income from selling power from them wasn’t sufficient to offset the risk of increased usage of the set. This is...