Households face paying higher prices for electricity in London compared to Scotland at certain times of day under wide-ranging reforms to make the UK’s energy market more green. National Grid wants to rearrange the market so that the wholesale price of electricity would vary depending on how far it has had to travel. The aim is to make better use of wind turbines proliferating around the British coast as well as solar panels and batteries, rather than having to pay renewable power to turn off when it is generating more than the grid can handle, as sometimes happens now. National Grid’s Electricity System Operator (ESO), says a blanket national wholesale price is “no longer fit for purpose” and the costs of running the system will be “excessive” unless changes are made. It is recommending dividing the network into different “nodes” which would have different wholesale electricity prices fluctuating through the day, reflecting the cost of supplying that location.
Telegraph 25th May 2022 read more »