Energy prices to remain ‘significantly above average’ up to 2030

Delays in new nuclear power and closures of existing plants could keep prices at high levels, according to a new report

Big Zero Report 2022

Energy customers might have to learn to live with skyrocketing prices for more years to come, according to a new study.

Looking at Britain’s energy market out to 2030, Cornwall Insight, suggests energy prices will remain in excess of £100/MWh a year.

The consultancy notes this is ‘significantly above’ the five-year pre-2021 historic average of £50/MWh in winter and the lower prices in pre-2021 summer.

The report also predicts that although prices will drop from the current levels, they will still remain high.

Analysts expect that prices will rise to £150/MWh in winter 2025 as a consequence of closures of nuclear power stations, delays in the commissioning of Hinkley Point C and increasing high-cost peaking capacity.

Tom Edwards, a Senior Modeller at Cornwall Insight, commented: “To stabilise and reduce power prices will take two important steps. Firstly, reducing our reliance on volatile fossil fuel prices by diversifying supplies and increasing renewables power generation.”

A few days ago, Cornwall Insight predicted that the price cap will remain above £2,000 for 2023 and 2024.

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