National Grid to explore reasons behind high prices of balancing market

The review will be carried out by National Grid ESO and external consultants

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National Grid ESO has unveiled plans to undertake a review of the balancing market.

The balancing mechanism is used by National Grid to balance electricity supply and demand.

The electricity system operator said in recent weeks there have been some “very-high cost” days in balancing the grid.

The review, which will be carried out by National Grid ESO and external consultants, aims to explore and understand what drives these prices up.

It said the investigation is of paramount significance as these high costs are passed on to customers.

Two months ago, National Grid Chief Executive John Pettigrew predicted that Britain was set to see tighter electricity supplies in the coming winter months compared to previous years.

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