Huge Margins For Electricity Generators In The SEM
A report published by the All Island Project, a joint exercise between the NI Utility Regulator and the Commission for Energy Generation, has revealed the huge margins made by electricity generators in the Single Electricity Market. The report shows that in 2011 wind generators in Ireland made a huge gross margin of 79%. Gross margins for other generators ranged from 62% for hydro to 24/25% for more conventional coal or gas generators, although these power stations accounted for the vast bulk of the revenue at over 73%. Oil powered generators produced the highest net margins at 33% while average net margins for generators were 16%.
MNI Chief Executive Bryan Gray said “It is preposterous that the present electricity market allows generators to make huge margins such as these, particularly at a time when manufacturers were struggling to survive the recession. We have already highlighted these huge margins to the Enterprise Trade and Investment Committee, and we understand that this will form part of their investigation into the electricity market. MNI will follow through with the Utility Regulator to make sure that this issue is addressed.
The full report can be downloaded here:-