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MSE News: Scottish and Southern Energy throws open electricity market

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This is the discussion thread for the following MSE News Story:
"SSE is to auction all of its power on the open market in a bid to bring new new suppliers into the energy market ..."
"SSE is to auction all of its power on the open market in a bid to bring new new suppliers into the energy market ..."
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Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
is this correct?
wasnt this whole integrated system broken up at privatisation, so that generators were seperate from supply businesses, were seperate from the transmission business.
presumably these new rules are because ofgem have allowed generators & suppliers to be the same business again.
By auctioning 100% of generation, the trading price for all buyers (the suppliers) will be at an open-market price for all to see.
As I understand it, prices won't necessarily come down but the market will certainly be more competitive if all generators follow suit and there will be a level playing field for suppliers.
I'm no expert on the energy market but that's my take on the plan. Let's hope the other generators do follow suit.
As has already been commented, some of the present retailers have bought into both Power Generation and Distribution.
Whilst each one bought will have a seperate legal identity, the business phrase for this is 'Vertical Integration', and I know from my experience with the paper industry that it spells bad news on prices as profit margins can be moved up and down the chain at will
It will slightly increase prices, because SSE will no longer be able to control their imbalance positions as accurately.
But hey, you guys asked for it!
Beats a '52 Vincent and a red headed girl
It won't make any difference. They can still do financial hedges on top.
Beats a '52 Vincent and a red headed girl
Member #1 of £1,000 challenge - £13.74/ £1000 (that's 1.374%)
3-6 month EF £0/£3600 (that's 0 days worth)
No, only licenced suppliers.
Beats a '52 Vincent and a red headed girl