Brexit Comes to U.K. Power Market With a Risk of Higher Costs
- Competing exchanges to unbundle their daily power auctions
- Two standalone day-ahead prices seen from Jan. 1 next year
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The first signs of how the U.K. electricity market will look from next year have emerged, with different daily prices potentially hiking costs for homes and industrial users.
For almost a decade, the U.K. has operated with two foreign-owned exchanges jointly setting a national price used to decide everything from flows to the continent to industrial rates. This co-operation will end next year when the nation isn’t bound by the European Union’s internal energy market rules. Each exchange will then produce its own daily reference price.