22
Not Addressed
We recommend that the Government implements a hedging strategy at Bulb Energy.
Recommendation
We recommend that the Government implements a hedging strategy at Bulb Energy. In the meantime, we ask that the Government provides us with detailed analysis of the cost implications for BEIS and the taxpayer of its decision not to purchase hedges to date.
Government Response Summary
The government indicates industry is making progress on implementation of market-wide half-hourly settlement, which Ofgem believes will be an important enabler of a more flexible, low carbon and low-cost energy system. This is not relevant to the recommendation about Bulb Energy.
Paragraph Reference
95
Government Response
Not Addressed
Government Response
Not Addressed
HM Government
Not Addressed
Industry is making progress on implementation of market-wide half-hourly settlement, which Ofgem believes will be an important enabler of a more flexible, low carbon and low-cost energy system. Suppliers are currently able to offer time of use tariffs using the elective half-hourly settlement process. A review of the operation of the process in 2020 showed that relatively few suppliers are using it, but no specific barriers or problems were identified.
Source
Committee
Business and Trade Committee
Report
Third Report - Energy pricing and the future of the Energy Market
26 Jul 2022
HC 236
Addressee Bodies
Department for Business and Trade
Timeline
Recommendation age
3.8 yrs
Report published
26 Jul 2022