In the third annual auction for electricity capacity to keep Britain’s lights on, flexible industrial, commercial and public-sector energy users have handed a saving worth £40 million to bill-payers. This proves that businesses responding voluntarily to electricity price spikes, demand peaks and power station failures, can make electricity cheaper and more secure for everyone, according to Edinburgh-based demand response aggregator, Flexitricity. In order to secure back-up energy supplies for 2020, this week’s four-year-ahead capacity auction has bought 13% more capacity at a price 25% higher than the equivalent auction last year, costing a total of £1.2 billion. While part of the rise can be put down to changes in government tactics for these auctions, much of this higher bill will go towards keeping old fossil-fuelled power stations running and building new peaking generators. However, Flexitricity says that the cost would have been even higher if the company hadn’t brought industrial and public-sector energy users, like manufacturers, hospitals, data centres, cold stores and supermarkets, into the Capacity Market through its ‘demand response’ programme.
Scottish Energy News 12th Dec 2016 read more »