Power supply auctions – Trophy Blog #126

Earlier in 2014 we heard news of a risk of blackouts during peak times. In the winter we all turn up the heating and stay indoors using every appliance to hand. Advert breaks during our favourite TV shows show a huge spike as we all put the kettle on. The government has been working on stopping the blackouts. They have put into place a system for the next four years. In the run up to this Christmas, power generation firms have been secretly told about the auction. The outcome of the auctions means they are to receive close to £1 billion to ensure their power stations stay open. The UK needs them to be fully working to produce the energy needed. The Government created a auction for energy businesses to trade their supply’s. This was the first time a system like this has been used and will be used again in the future. The country has now secured 49 GW of power capacity at a secured cost of £19.40 per KW. The total cost of this to the UK bill payers is £960 million. Sadly it will add around £11 to everyone’s bill over the year. This works out at 92p extra per month. The doom and gloom people have straight away criticised the scheme, saying that it will keep coal fired power stations such as our local plants, Drax, Eggborough and Ferrybridge, open even longer. I’m sure local workers will welcome the news that they get to keep and expand their employment. We know that Drax has had huge investment to change over to BioMass and hopefully this auction news will help secure Eggbrough staying open for a long time into the future. There are fears of a shortfall in power because power plants in the country have closed because of new pollution rules or because they have become uneconomic to run. The two coal mines left in the country can’t produce coal cheaply enough.  

about the author

We are pleased to announce the merger of LRB Trophies with Cameo Engraving in York and The Trophy & Print Shop in Norton.

No comments

leave a comment