Insightful piece on more or less today.

[MikeSharp01]

Caught  really interesting and easy to understand piece on the BBC's more or less programme today. It explains why our electricity prices are so high, how they are made up and how marginal pricing works. Catch the piece at 12 minutes in. https://www.bbc.co.uk/sounds/play/m002fj8f

[SteamyTea]

But Little Tim Hartford's mate got 3 hours of gardening for 300 quid, not 1 hours gardening for 300 quid.

I better write to him before September.

[MikeSharp01]

9 hours ago, SteamyTea said:

But Little Tim Hartford's mate got 3 hours of gardening for 300 quid, not 1 hours gardening for 300 quid.

I better write to him before September.

I hadn't spotted that one I must re-listen. 

[SteamyTea]

1 minute ago, MikeSharp01 said:

I hadn't spotted that one I must re-listen. 

It was not a good analogy, or was it a metaphor, maybe a similarity.

 

I actually thought it was quite a good explanation of the electricity market's marginal pricing.

Odd though, as usually in business, marginal pricing reduces the price up to a limit, where a step change happens i.e. the factory reaches capacity and a new factory has to be built.

I suspect this has come about because there is over capacity in the market i.e. we have more than enough plants, but the high cost of keeping them operational needs payment.