Imbalance Management

Managing the cost of increasing power prices

Imbalance costs are an electricity market fact of life and, at a time of steadily increasing power prices, many UK businesses remain either unaware of their existence or how to manage their impact.

Whether an organisation simply consumes electricity via a supplier, or generates power from its own assets, unaddressed the Imbalance issue can represent a significant financial risk – typically between 3% & 5% of the electricity value. As such, Imbalance figures can be in excess of £100k for an electricity spend (or revenue stream) of as little as £2M per annum, and obviously the bigger the spend/revenue the larger the potential cost.

Imbalance costs are an “inconvenient truth” in the UK electricity market – however it is also a fact that industrial and commercial businesses can choose to proactively manage them.

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