UK energy market braced for ‘many more years of boom-and-bust volatile prices’

New report suggests that from 2026 prices could become “increasingly volatile”

Big Zero Report 2022

Researchers have today warned that volatile prices are here to stay and will continue into 2030 if the current energy strategy will not be reformed.

The worrying finding comes from the new Benchmark Power Curve report by consultancy Cornwall Insight, which predicts that from 2026 prices could become “increasingly volatile”.

That will potentially mean that prices could jump by £95/MWh between the summer and winter, the authors of the report said.

They also forecast that the difference in prices between seasons could increase to nearly £120/MWh by 2030.

The analysis suggests that will be the result of over-dependence on “insecure” energy imports, increased weather risks fuelled by climate change and a reduction in nuclear and coal power stations.

Tom Edwards, a Senior Modelling Consultant at Cornwall Insight, commented: “As our research shows, without significant changes to the way we procure, supply and consume energy, we are likely to see many years of boom-and-bust energy pricing in the UK.”

“Looking further ahead, policy makers must understand that the market designs of the next 20-30 years cannot rely on stable economic, geopolitical, or ecological systems.

“A greater focus on resilience and risk above efficiency and low costs across our economy is needed.”

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