Markets
The transformative changes on-going in the power sector lead to the emergence of new patterns of generation and trade influencing the development of markets and grid. Whilst markets continue to integrate and get more liquid, the expected benefits have been more moderate with limited or even declining price convergence. Markets are experiencing overall downward pressure on wholesale prices brought by an increasing share of variable renewable energy, a decline in demand and lower fossil fuel costs. Nevertheless, customers are not reaping the benefits of lower prices because wholesale prices reduction are largely off-set by the increase in taxes and levies which grew by 109% for industrial customers between 2008 and 2012 alone.
