Outcome of National Grid ESO’s Balancing Markets review
Letter from Business and Energy Secretary Kwasi Kwarteng to Ofgem’s Chief Executive Officer, Jonathan Brearley.
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The Business and Energy Secretary Kwasi Kwarteng wrote to Ofgem’s Chief Executive Officer, Jonathan Brearley, noting National Grid ESO’s Balancing Market Review, and Ofgem’s subsequent letter concluding its own review.
The letter notes the findings of high electricity balancing costs over winter 2021 to 2022, driven by high global energy prices, but also the identification of some undesirable market participant behaviour which at times exacerbated high prices. The Secretary of State offers Ofgem and National Grid ESO support in bringing about any necessary market change and encourages any remediation to be implemented as quickly as possible – to ensure that markets deliver in the interests of consumers.