@transparent

The video below details one of the possible reasons for higher electricity prices.

Posted by: @derek-m

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one thing that did concern me was the number of times the word 'market' was used for what after-all should be a National Strategic Asset

This is going to be a problem with NESO recruiting staff from the commercial sector (National Grid).
They are probably unaware of how ingrained is that thinking.

We do need experienced and competent managers at the helm of NESO, but I'd like to see wider representation within the RESPs to counter that culture.

Simply trying to 'involve' Local Government within RESPs isn't going to be enough.
That could still leave NESO setting the agenda to make progress towards Net Zero, and expecting elected Councillors and local authority staff to learn the in-house jargon.

One possibility is for NESO to appoint an Ethics Advisor who heads up a Consumer Panel.
About 20 years ago I attended a seminar where the speaker had been the Ethics Advisor to the US energy company, Enron.
He had a non-voting seat at Board Meetings, and was permitted to hear comments from whistle-blowers in complete confidentiality.
He resigned over a year before the company collapsed.

DNOs are required to have input from Councillors and the public as a condition of their RIIO-ED2 Agreements with Ofgem.
Interestingly, NGET have no such obligation, but I do contact them to bring things to their attention, and that is generally welcomed.

I'm unsure if there's any obligation for NESO to receive feedback.
If not, then I'll be adding it as a comment when I complete the current public consultation on The RESP Policy Framework.
Now is clearly the right moment to raise these issues - no point waiting until the RESPs start work next year.

@derek-m One of the big reasons for higher electricity prices has been an absolute flurry of hedge-funds playing high speed speculation games. Specially on the Dutch Day Ahead and Intraday markets. 

I have been following this quite closely (as far as I understand it) through one of my energy experts. It's quite a dirty game. 

@lucia And who foots the bills for these greedy bar stewards? We do of course.🤨 Regrets, Toodles.

Posted by: @derek-m

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@transparent

While it was quite an interesting video, one thing that did concern me was the number of times the word 'market' was used for what after-all should be a National Strategic Asset.

That'll be because her title is apparently 'Head of Markets'

@ianmk13 ‘Provision of a National Service’ should never be confused with ‘An opportunity to exploit a market’. 😒 Toodles.

Erm @toodles the 'Head of Markets' title is what Ms Dykta has been called whilst still working for NG ESO.
It's reasonably accurate, and matches the role she's been in charge of.

NG ESO currently provide balance of supply and demand by buying and selling across the wholesale market from generators who are offering power of the sort they require.

The point I was making earlier is that the culture of that environment is at variance with what NESO is about.
... which we two seem to be agreed on.

From what I've learned thus far of NESO staff-to-be, I think they'll do an excellent job as an independent operator, working on behalf of the nation.

But we need to be allowed open participation within the RESPs in order to affect the cultural changes which the new independent operator needs to espouse.

Today I met with a senior engineering manager in another sector of British energy who also needs to have a place at the table within a RESP.
He oversees a number of medium-scale commercial hydro-electric generation plants, but isn't involved in the sale of the electricity.

Bizarrely, he was unaware of the imminent arrival of NESO...
... which doesn't reflect well on the directors above him.
On-the-job training should be an important part of informing such employees of relevant news.

Since NESO is highly likely to pursue Nodal-Pricing (regardless of what DESNZ might've said previously) a senior engineer with multiple hydro-plants at his disposal is in an excellent position to provide the frequency-support required at the 11kV level. Having his input to a RESP is therefore very important.

@transparent

Having spent a large portion of my career working in the electricity generation industry, when it was run by people who appeared to know what they were doing, I find it disheartening that within the present electricity supply industry it would appear that the left hand doesn't appear to know what the right hand is doing.

Yes @derekm And this is another reason why local techies need to within the RESPs, not just elected Councillors.

It's particularly alarming that a left-hand isn't being used when dealing with turbines.
How would one otherwise know which way the rotor was going to turn within an electromagnetic field? 🤨 

Posted by: @transparent

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Yes @derekm And this is another reason why local techies need to within the RESPs, not just elected Councillors.

It's particularly alarming that a left-hand isn't being used when dealing with turbines.
How would one otherwise know which way the rotor was going to turn within an electromagnetic field? 🤨 

How could one get involved?

Posted by: @derek-m

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How could one get involved?

Read what I've just posted here about the National Energy System Operator and click on the link which takes you to the RESP Consultation being run by Ofgem.

If they don't ask the right questions within the consultation, then we can send in comments directly by email.

The RESPs need to inspire and equip the whole population to work towards Net Zero,
and also include the free-thinkers and innovators who will be needed to get us there.

Posted by: @lucia

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@derek-m One of the big reasons for higher electricity prices has been an absolute flurry of hedge-funds playing high speed speculation games. Specially on the Dutch Day Ahead and Intraday markets. 

I have been following this quite closely (as far as I understand it) through one of my energy experts. It's quite a dirty game. 

The trading expert I follow reckons that gas is getting traded purely on sentiment (imagined scenarios) up to 18 times above actual supply-and-demand. Each one of those trades expects 'value' - profit. 

He used the Houthi situation in the Straights of Hormuz as an example where oil carried on as before with no impact on prices (the Houthis were very clear about who their targets were - the US/Israel/etc) yet speculative gas traders (who never transport gas through the Straights of Hormuz) blew gas prices sky high. 

Meanwhile, these gas speculators drive up electricity prices because of the linkage.