North Sea power hub could ‘bring cheaper energy for all’ as new system vows to slash costs

“There might be some circumstances, it shouldn’t be very frequent, where that particular part of the system would be constrained and is not able to fully export, and in that situation, the price will drop in that location.”

A spokesperson from Octopus Energy, who commissioned the study from earlier this year, previously said that a major reason for this is powerful winds in Scotland, which are harnessed by North Sea wind farms.

They said: “We recently did a study with the Energy Systems Catapult which showed that locational pricing could save electricity users £30billion, as much as £1000 per household, in the period to 2035.”

However, given that the figures were calculated based on energy prices before the price cap was raised to £2,500 in October, this figure will likely be higher. 

READ MORE: Energy crisis lifeline as Brits urged to slash up to £1,292 off bills

Article source: https://www.express.co.uk/news/science/1713675/north-sea-power-hub-locational-pricing-cheaper-energy-slash-bills-new-system