| ▲ | lolburgerh261 13 hours ago | |||||||||||||||||||||||||
Someone doesn't understand marginal pricing | ||||||||||||||||||||||||||
| ▲ | tialaramex 12 hours ago | parent [-] | |||||||||||||||||||||||||
Well, there's a difference between "This is just marginal pricing" and "This very specific market with marginal pricing is the only one possible" I would like to think that National Government is considering choices which would still be marginal pricing but change other elements to better suit our present reality. Two examples: 1. Regionalize. Today the price for 1MWh of electricity in Portsmouth is exactly the same as for 1MWh of electricity in Dundee but if the UK is making so much electricity in the far North on a windy January night that's not the real price to deliver the electricity, getting it to Dundee would be far cheaper. Prices can reflect that, and if they do that new energy-hungry factory makes more sense in Dundee than in Portsmouth even if it would be slightly more convenient to build it in Portsmouth. 2. Retail pricing can have a significant social policy element distinct from "What the market says this costs". Technically an old lady living alone who uses 50kWh per month and a wealthy family with two EVs and a swimming pool chewing almost 10MWh per month are both "connected to the grid" but maybe the 40p per day "standing charge" to cover that connectivity could be 10p per day for that old lady and 80p for the wealthy family. Again, the market says that's wrong because the connection doesn't cost more money if you use it - but it's a social policy decision. Edited to Add: By the way I assume regional pricing is a reason sometimes the UK is both buying Electricity from France and selling Electricity to France, over different links. Presumably the prices are different and so we are effectively arbitraging their electricity. | ||||||||||||||||||||||||||
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