Power Prices Retreat from Multi-Year Highs
Power and gas contracts decrease, retreating from multi-year highs. Ofgem’s embedded benefits decisions face an injunction.
Ofgem’s recent decision to lower the financial benefits received by small-scale generators now faces an injunction, following a Judicial Review. Currently, small generators can earn significant amounts of money by exporting power to the network during winter periods of high demand. Such an injunction would reduce these payments by 95%, but consumers would save up to £7bn by 2034. In the wholesale market, all power and gas contracts decreased, with wind generation causing near-term power and gas contracts to drop. Seasonal power contracts failed to hold on to their multi-year highs, while Brent crude oil reached a three-year high.