EDF is to raise its standard electricity tariff for UK customers by 8.4 per cent from next March in defiance of government efforts to drive down bills. The increase — the French utility’s first in three years — highlights renewed energy price inflation over recent months as commodity markets have rebounded. Constraints in electricity generating capacity and depreciation of the pound since the UK’s vote to leave the EU have also contributed.
FT 16th Dec 2016 read more »
Independent 16th Dec 2016 read more »
Britain’s energy watchdog fears that power station operators may have fooled the wholesale electricity market by using underhand methods to artificially push up prices. Some generators have been paid as much as £1500 per megawatt hour for electricity in recent weeks, compared with regular prices of a fraction that level — about £50. Ofgem wrote a letter to suppliers on Monday threatening unlimited fines and possible criminal action if they were found guilty of suspected abuse. The letter warned against “market manipulation and insider trading” by market participants. “Submitting misleading Physical Notifications clearly has the potential to breach obligations,” it said. The regulator is concerned that companies may be making false statements about the amount of electricity they plan to generate, as a way of artificially boosting wholesale prices during periods of high demand.
Times 17th Dec 2016 read more »