Locational electricity pricing

Lucia · 2024-08-12T22:16:13Z

[…] In practice, this would mean adopting individual electricity prices for seven to 12 “zones” drawn across the country. Currently, there is one wholesale price for all of Great Britain and it changes at half-hourly intervals throughout the day. […] Switching to a location-based system would, at a conservative estimate, strip out between £15bn and £51bn of waste, cutting bills by an average of up to £600 per household between 2025 and 2040, according to a study commissioned by Ofgem, the energy regulator. […]There are broadly two types of locational pricing: zonal (regional) and “nodal”, a far more granular, street-by-street system. However, critics say both resemble what might be regarded as a postcode lottery, with those closest to wind farms rewarded and those who live in and around London penalised. Had to giggle at the Telegraph trying to sell an idea to their readers based on (whisper..) "less pylons". 🫢 I'm not sure what I make of this but here's the whole article

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Government Schemes, Regulations, Planning & Organisations

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Transparent

(@transparent)

Illustrious Member Moderator

Joined: 4 years ago

Posts: 2685

07/10/2024 12:49 pm

Erm, @lucia are you referring to this graphic in the Grudian article?

The small print says that was based on Future Energy Scenarios analysis by National Grid ESO (Electricity Systems Operator) back in 2022.

1: National Grid ESO no longer exists.

Since last Tuesday, 1st Oct, all energy networks (not just electricity) are being run by the new independent body National Energy Systems Operator (NESO), who have a sparkly new website and logo.

2: The journalist is confusing Generation Zones and the amount paid by consumers.

The Generation Zones are based on defined points in the transmission grid (275kV and 400kV) which have constraints on how much electricity can be passed through them to the adjacent area(s).

You live in Sector F6 of the SW Transmission region, which is limited by Boundary B13.

The grid maps and technical explanation of these constraint boundaries are described here on NESO's website.

The amount paid by customers differs according to the Region of the Distribution Grid (132kV and below) to which your house is connected.
You live in the SW England Distribution Region, which is covered by a licence granted to NGED by Ofgem.

There is little direct correlation between the position of your house on the Distribution Grid, and the Constraint Boundaries which exist at the higher-voltage Transmission Grid.

3: The map you should be referring to today, is this one:

It's taken from Section 5.22 of an Ofgem consultation on the proposals for the Regional Energy Strategic Plans (RESPs) for Britain.

The consultation closes tomorrow, 8th October...
... which means you'll need to use some speed-reading techniques and burn the midnight oil.

The RESPs are part of the regulatory framework which will implement the move to Net Zero by 2050.
This is a one-off final consultation on who is going to be responsible for energy policy in your area, and how they will be resourced to achieve it.
You won't be able to pass comment at a later date...
... even if you write for the Guardian.

There are fifteen questions, and you can pick which ones you want to respond to.

There's no form to fill in.
You can write your responses free-form, including any graphics, as you wish.

I'm currently on the 6th page of my response 😎
and I'm aiming for at least grade-B.

Save energy... recycle electrons!

👍

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Lucia

(@lucia)

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Joined: 1 year ago

Posts: 332

Topic starter 07/10/2024 7:41 pm

@transparent Phew!

ok have skim read despite hectic day one of installation. I am pleased they want to merge 'peninsular' & 'sw gateway'.

That is the SW I know and it is how our region functions in terms of movement - flows of people and goods. It's also more viable from a business perspective.

Very concerned with their definition of local stakeholders - from what I've seen too often down here that's a euphemism for the same old incestuous 'farming and business interests'. Corrupt as 🦆

This is such a problem in my neck of the woods that a (strictly) local non-aligned political party was formed with some success in district elex.

Not sure that I'm of sufficient competency to comment very much. You know your stuff, I'm just learning to toddle really - but input is so important. I'll try to answer a few of them. 🙈

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