Contract Reference Price

We were engaged to advise DECC on how to form and manage the reference price for the baseload contract for difference. This included a review of various information publicly available on the traded price of electricity, and the issues with each such information source, and the resulting index, in terms of:

This led to a workshop with the relevant industry working group, with our presentation being published by DECC at the following link:

Reference Price Presentation

We then went on to consider arrangements to “govern” the reference price such that investors can have confidence it will continue to reflect the traded price for electricity as new price indices emerge, and old indices fall away.