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We also have this rather unusual energy market where the price for energy is set by the supplier with the highest price necessary to meet demand at any particul
by mnw21cam 1y ago
We also have this rather unusual energy market where the price for energy is set by the supplier with the highest price necessary to meet demand at any particular time, and all the suppliers get paid that price. Most countries use a system where the suppliers get paid how much it costs for them to generate individually, and the users pay an average of that all.
- Moldoteck 1y agoNo, most countries use the same merit order mechanism like UK. The difference is that in those countries gas peakers are competing with cheaper hydro (nordics), coal(Germany) or nuclear (france). UK nuclear is pretty small, so gas competes only with itself for setting the price.
- plantain 1y agoIf you sit down and think hard about it, I'm not sure you'll figure out a better system. It does make sense.