Energy Market Design

Short-term energy market interventions

There is considerable concern about the availability and price of energy for this winter and those that follow.  Cornwall Insight has been contributing to the policy discourse through our widely-referenced domestic Default Tariff Cap analysis.  As prices continue to rise above what were considered unbelievable levels until recently, the signal from the market could not...

Home supply and services

Cornwall Insight comments on the announcement of the October price cap

If you are a consumer seeking support with their energy bills, please read our blog here: https://www.cornwall-insight.com/support-for-consumers-concerned-about-rising-energy-bills/ The rise in the Default Tariff Cap (price cap) was unfortunately inevitable, as UK bills continue to be the victim of an unstable and unpredictable global market. While there is still some time until...

Home supply and services

Highlights from our Energy Supplier Compliance webinar

As part of our Energy supplier compliance portal service, we run a webinar every 6 months which looks at key updates.    Our latest webinar looked back at the decisions made under Ofgem’s financial resilience plan. This included strengthening milestone assessments and introducing additional reporting requirements. It also decided on the short-term interventions...

Home supply and services

What is the price cap?

We release our price cap forecasts in the hope that we can encourage policy change.  We have created this infographic to help people understand the price cap and how we make our predictions. We would also like to clarify that we cannot influence Ofgem to change the amount of the price cap.  You...

Energy Market Design

REMA: electricity market design choices

Electricity markets will serve as the foundation for the future GB energy system.  This article examines some of the market design decisions that will be considered by the Review of Electricity Market Arrangements (REMA). Market design goals At its most simple, a well-functioning market will attract enough potential “buyers” and...

Home supply and services

Cornwall Insight release final predictions for October’s Price Cap

If you are a consumer seeking support with their energy bills, please read our blog here: https://www.cornwall-insight.com/support-for-consumers-concerned-about-rising-energy-bills/ Cornwall Insight are releasing our final predictions for October’s Default Tariff Cap (Price Cap) prior to Ofgem’s announcement on Friday 26th August. Predictions show a typical household1 will be paying £3,554 equivalent per year...

Low carbon generation

Head to Head: CfD vs RESS

2022 has been busy for renewable developers in Great Britain and Ireland, with both the fourth allocation round of the Contracts for Difference (CfD) scheme and the second round of the Renewable Electricity Support Scheme (RESS) concluding this summer. We compared the latest results of the CfD and RESS schemes...

Low carbon generation

Energy System Reform: Ofgem shares plans for Britain’s energy system

Against the backdrop of record high and volatile energy prices, Ofgem set out on 8 July its view on key aspects of the GB energy system where it considers significant reform is required to deliver a resilient, low cost, low carbon energy sector. Recent developments in the energy market, such...

Commercial and market outlook

Energy Market Alerts provide latest updates in a complex market

Cornwall Insight Australia summarises all the essential facts in our Energy Market Alerts, designed to keep you up to date with all the latest developments in the market. The energy market is changing so fast that our Alerts will ensure you have the facts to hand when you need them....

Energy Market Design

Can we fix the wholesale energy market this winter to lower prices and should we want to? 

The Review of Electricity Market Arrangements (REMA) is intended to discuss and decide on appropriate market arrangements for 2035 in a Net Zero, low marginal cost, renewables-dominated market. It is unlikely it has the scope or capability to intervene in the market arrangements ahead of this winter. Therefore, some new interventions...

Low carbon generation

PSO Levy 2022/23: RESS to the Rescue

This week we look at how renewable generation is putting money back in consumers’ pockets - a trend which, based on the power price forecast from our All-Island Forward Curve report, is expected to continue until 2027. Last week the Commission for Regulation of Utilities (CRU) published their final decision...

Home supply and services

Price cap forecasts for January rise to over £4,200 as wholesale prices surge again and Ofgem revises cap methodology

If you are a consumer seeking support with their energy bills, please read our blog here: https://www.cornwall-insight.com/support-for-consumers-concerned-about-rising-energy-bills/ Our new forecasts for the January Default Tariff Cap have risen by over £650(1), meaning a typical household is now predicted to pay the equivalent of £4,266 a year for the three months to...

Business supply and services

The energy crisis affects businesses as well as households

Yesterday morning we issued our updated forecasts for the Default Tariff Cap through to the end of 2023. They make for grim reading: from 1 October 2022 the Cap will average £3,500/year equivalent or so for at least a year, unless there is a collapse in the wholesale energy markets....

Regulation and policy

The changing compliance landscape

In recent months, Ofgem has been increasing its engagement with suppliers to ensure compliance with their supply licences and to deliver more resilient business models. This has been evidenced through a number of actions, such as stress testing suppliers and introducing additional reporting requirements, under the scope of the regulator’s...

Home supply and services

Price cap to remain significantly above £3,000 a year until at least 2024

Our latest forecasts for the Default Tariff Cap have shown a typical household’s energy bill will be well over £3,000 a year for the next 15 months, with the average bill over Summer 2023 (Apr-Sep) sitting at £3,649 – just over £300 per month. We have also updated the predictions...

Energy storage and flexibility

National Grid ESO’s ‘early view’ winter report 2022/23

We have published an alert on National Grid Electricity System Operator's Winter 2022/23 early view report.  The ESO considers that it is important for industry to be provided with a rough understanding of the situation to come, through the early view report. It is operating under the assumption that the peak...

Energy storage and flexibility

Dialing up the unknowns on network charging

In a world of open governance code modifications, change is a constant. You only have to look at the number of code modifications ongoing at any one time – National Grid lists 36 modifications in development relating to transmission network charging alone – for evidence of that. But in recent...

Home supply and services

Support for consumers concerned about rising energy bills

Energy bills are on the rise and many consumers will have questions on how they can access support and advice.     Cornwall Insight cannot advise individual consumers on their energy bills, however, below is some information on places you can contact for information and guidance. This includes advice on what to...

Low carbon generation

Diversifying the Irish Energy Mix, could hydrogen be the answer?

The recent news that Nord stream has resumed flows into Europe will ease some of the fears of supply shortages heading into the winter for us all and have associated knock-on effects pricewise. Although back flowing, the EU commission on Wednesday urged countries to cut gas use by 15% over...

Low carbon generation

GB Power Market Outlook to 2030 Q2 2022

This report provides an annual overview of trends for the GB Power Market out to 2030 using outputs from Cornwall Insight’s latest Benchmark Power Curve (BPC) for the British Electricity Market covering England, Scotland and Wales. This publication is based on comprehensive market and asset-level power price modelling that delivers...

Commercial and market outlook

An overview of the Review of Electricity Market Arrangements (REMA) consultation

Following the commitment set out in its Energy Security Strategy, the government has published a consultation on the Review of Electricity Market Arrangements (REMA). This aims to ensure that the electricity market design is fit for the purpose of maintaining energy security and affordability for consumers as the electricity sector...

Low carbon generation

What’s in store? Our analysis of the co-location development pipeline

Amid underlying volatility in wholesale power prices, opportunities for access to wider flexibility revenue streams, and the impact of price cannibalisation, the case for co-location for renewable energy assets is growing. As part of Cornwall Insight’s Renewables Pipeline Tracker service, a case study is included in each report’s release based...

Commercial and market outlook

Capacity, reform, and unlawful strategies: 5 things that happened yesterday

Capacity, reform, and unlawful strategies: yesterday was a busy day for energy geekery. The developments encapsulate the shorter and longer term challenges and uncertainties present in the energy market presently: Read the full article here

Commercial and market outlook

Two thirds of energy industry professionals think the market needs to be drastically reformed

A survey conducted of over one hundred leading energy market professionals from across the investment and advisory community, by Cornwall Insight, from the attendees of its Financing Net Zero forum, has shown nearly two thirds (63%) of people working in the energy industry1 believe the UK market needs to be...

Commercial and market outlook

Reaction to BEIS consultation on the Review of Electricity Market Arrangements

Confirming the Review of Electricity Market Arrangements (REMA) opens the prospect of a complete overhaul of the electricity market in Great Britain for the first time in over 20 years. The scope is very wide and the perceived need for reform clear from BEIS in the consultation document, with much...

Low carbon generation

3G meets in-person| Lots discussed in our low carbon user group

Last week I took a trip to sunny central London to attend Cornwall Insight’s Green Generators Group (3G), which is the user group for our low carbon generation service. In what felt like a novelty after a two-year hiatus of face-to-face forums, I was joined by my colleagues Dan Starman...

Regulation and policy

New nuclear: BEIS consults on RAB revenue arrangements

BEIS published on 14 June its consultation on the revenue stream element of the proposed Regulated Asset Base (RAB) model to incentivise the deployment of new nuclear projects. BEIS is responsible for implementing this as legislated by the Nuclear Energy (Financing) Act 2022 which received Royal Assent on 31 March...

Home supply and services

Making the switch – how much will really change?

Last week on 1 July, Ofgem confirmed that the designated Go-Live date for the Centralised Switching Service (CSS) would be 00:01AM on 18 July 2022, as was previously anticipated. The most significant impact of this will be the requirement on suppliers to ensure switches are completed within five working days,...

Low carbon generation

A collection of resources on net zero – Net Zero Week 2022

For Net Zero Week 2022, we released a range of resources to help you on your journey to net zero. For convenience, we have put them all together in a handy Resource Report. To read the full collection of resources, please log in to your account or sign up for...

Low carbon generation

CfD Auction Secures Greatest Amount Of Renewable Capacity To Date

Yesterday, the government released the results of the fourth round of the Contracts for Difference (CfD) scheme, securing almost 11GW of renewable capacity across 93 projects, nearly double the 5.8GW awarded in Allocation Round 3 in 2019. The greatest capacity – at 7.0GW - has been secured from new offshore wind projects,...