23 December 2022 | Macroeconomics

The UK grid to pay a record amount to provide electricity in the country

The UK's power grid is facing record costs to provide citizens with electricity. It is worth noting that this year, power stations increased output during an emergency. The network is trying to balance supply and demand before the energy crisis hits Europe.

Between January and October, National Grid Plc paid 3.2billion pound sterling ($3.85 billion) in balancing costs. This is reported by the Electricity System Operator and the Nuclear Industry Association. Ultimately, the additional costs will be reimbursed to consumers, as this year energy costs exceeded the past year by 20%. Moreover, recent figures have not yet been released to the public.

The grid must balance supply and demand at times when markets are being pressured. It usually happens during the colder months. Thus, there will be a need to quickly secure the supply of electricity, which will be rather costly for the citizens of the United Kingdom. As a result, operators' profits will increase. For example, according to Enappsys Group Ltd., one gas-fired power plant operated by VPI Holding Ltd., a unit of the Vitol Group, earned more than 11 million pounds in just one day this month.



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