Recently the ESO has released their summer outlook for this year. In this report they have said how they expect to be able to maintain a sufficient supply over the summer months, however low demand is going to remain a challenge.
The operators have said that although supplies should be more secure than a year. However, electricity prices are set to remain high over the summer months due to the system operators having to manage low demand.
The director of the ESO has expressed his concern over low demand this summer. He has spoken out to say that managing minimum demand is likely to be more challenging than it has historically been. Although the network operators do not expect demand to be as suppressed as it has been in the past.
The network operators have however ensured that they are introducing measures to keep consumer costs as low as possible. Unfortunately, electricity prices are still expected to be higher this summer due to higher prices that have priested from last winter. Although these have dropped, they are still higher than in previous years and pre covid market.
The ESO has mentioned that although geopolitical issues don’t affect the security of UK energy supplies, it does increase the costs of balancing the UK market. This leads to higher operability costs which are often passed onto consumers in the form of third-party charges.
Higher third-party charges are going to put more strain on business energy bills this year as suppliers are expecting them to rise. Find out more here on TCPs that businesses will face.
Currently, the ESO is looking into high balancing charges and is going to suggest a review of the energy market to bring balancing charges down and improve costs for consumers.
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