It is important to realise that the current pricing mechanism is not an accident, and has some non-obvious benefits that need to be weighed against the obvious drawbacks. Clearly other mechanisms exist, which might solve the obvious drawbacks, but it is a choice of tradeoffs rather than a simple fix.
> This price-setting dominance is being eroded by renewables, with recent analysis from the UK Energy Research Centre showing that gas set power prices 90% of the time in 2025.
One could argue that it’s the “big boys” favour to build out “just enough” renewables in places that are further away from demand, so that gas still sets the price even if it’s just a fraction of what’s actually being used.
Min/max profits, but that would be crazy talk right! I’m sure the large energy producers have my best interests at heart really.
They need to fix their market pricing mechanism before the public benefit from cheaper renewable energy sources.