Disappointing to see the savings rate so low for Year 3 at Craig Fatha, at just 6.5 p/kWhr (a circa 75% reduction on Year 2 rate of 27 p/kWhr).
It’s worth bearing in mind that’s lower than the Year 1 fix agreed in October 21 at 9.5 p/kWhr, which itself under-performed in comparison with market prices throughout Year 1 by a very large margin.
I have suggested previously these wild fluctuations in savings rates could be avoided, were Ripple to sell their electricity at varying market rates throughout the year (taking half hourly spot prices), or at least significantly smoothed if a quarterly fix were to be taken.
Strikes me that such a model would be more in keeping with a cooperative philosophy, as involves taking something more closely resembling actual market prices. Thus avoiding the risk of not keeping up with energy prices should they rise (which members I feel would welcome, and give them assurance their bills will be offset), and also any suggestion of members profiteering should energy prices fall appreciably over the year.
I believe it to be a simpler, unequivocally fairer pricing model, that avoids subjective management decisions on when and at what level to lock-in prices for the year, and would avoid any scope for criticism of such decisions in hindsight. It would also reduce the burden on Ripple management in making such important decisions on members’ behalf.
Incidentally, the current price level appears to be at previous peak resistance levels over many years, which those with charting knowledge will tell you likely represents a floor or thereabouts in prices. I wouldn’t be at all surprised if prices haven’t just been locked-in at the bottom for the coming year.
And given the geo-political conditions, and the dangerously low secure baseload supplies available to the UK for at least the next decade, further massive price spikes might not be unexpected.
Come on Ripple, let’s have an open and transparent discussion on the merits of different pricing models, and some genuine consultation with members on their views on this important matter.