GB power prices continue discount to NW Europe
Historically, GB power prices have been at a premium to mainland European power prices, in part due to the CPS, an additional carbon tax. This premium has left the UK as a net power importer, importing cheaper power across interconnectors to France, Belgium, the Netherlands and, more recently, Norway.
In recent months however, GB power prices have been outstripped by those of France and Germany, as displayed in the chart. Great Britain has one of the largest LNG import infrastructures in Europe, with 3 terminals. Constraints on exporting this gas to the Continent via IUK & BBL has driven NBP as low as £50/MWh below TTF. The availability of cheaper gas has led to the relative decrease of GB power prices compared to France and Germany, and GB has become a strong net exporter of power across its interconnectors. Exports have even taken place across the North Sea Link due to a very dry winter in Norway reducing their hydro power output.