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As part of the Governments ongoing review of the electricity market, there are plans being considered allowing homes & businesses to pay less for their usage when demand is low, or when the weather allows for increased generation.
How will these changes help homes & businesses?
The Department for Business Energy published plans on the 18th July 2022, outlining several changes it believes will “cut costs of electricity for consumers”, following a significant period of preparations.
The primary objective of this review is the Government looking to open consultations with suppliers to look at the possibility of offering cheaper electricity prices at periods going forward. These consultations will include plans for suppliers to introduce incentives for consumers to "draw energy from the grid at cheaper rates when demand is low" or when renewable generation is high.
This review will also look and consider possible options such as pricing by location, which in turn could result in properties in areas that produce a significant level of renewable energy, being able to purchase electricity at lower rates, for example Scotland & several coastal locations.
If successful, there will be periods throughout the Day, Week, Month & Year where due to low demand or high generation, the cost of electricity will reduce to allow homes and businesses to make savings on usage.
The review is also looking at plans to improve storage systems for electricity generation (including wind and solar), in turn allowing for gas-fired power stations to no longer be the main back up, ensuring the price of wholesale gas would have less impact on the overall price. For further information on this process please see our article dated 20th June 2022.
It is thought that some of these changes within the review could be put into place by the Summer of 2023.
Is there anything Commercial Businesses can do to reduce ongoing Energy Costs?
Although these new advances are welcomed, unfortunately businesses will not see any immediate benefit, however CostAdvice are here to help.
If you are struggling with Rising Energy Prices, are dealing with problem queries or would like to take advantage of our No-Obligation Energy Audit, please contact Daniel Walker on 01246 252788, or by e-mail at firstname.lastname@example.org, whereby he will be happy to help.