Utility Management Group
Senior decision-makers come together to connect around strategies and business trends affecting utilities.
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How much is 1 MWh worth?
How much is 1 MWh worth?
This question is essential for anyone responsible for deciding on alternatives to achieve and maintain competitiveness in the electricity bill.
The challenge is intriguing because a value must be set. And there are so many criteria I've seen employed:
1. Looking in the "rear view mirror"
The most common is to average a period considered representative.
2. Using ongoing, current prices and rates
Those that appear in the invoices received from contracted suppliers
3. Aiming at the future
Estimating the marginal cost of expanding supply to meet demand
According to the criterion, the value to be considered varies, and potentially, a lot. And the decision of what to choose too!
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