Britain’s energy prices have fallen below zero as Storm Amy arrives with high wind speeds this weekend.
The country is bracing itself for winds of up to 95mph this weekend, with the Met Office expecting a weekend of ‘very strong winds and heavy rain’.
While the exact track and intensity of the storm is uncertain, energy prices are on track to settle below zero for a full day, the first time since 2023.
Day-ahead power prices for Saturday have settled at -42p/kWh, according to data from Epex Spot SE.
Meanwhile, Britain’s biggest household energy supplier Octopus Energy said some customers on its agile tariffs, where prices drop if supply is high or demand low, could pay nothing for electricity at points this weekend.
Currently, over 50 per cent of current UK electricity demand is being met by wind generation, according to the GB Renewables Map.
Surfers won’t be the only ones taking advantage of stormy weather this weekend, some households will pay nothing for electricity. A person surfs in the sea off of Bournemouth Pier
Storms can help boost the UK’s renewable energy supplies by increasing wind power generation and reducing reliance on gas.
Analysis by Bloomberg found that wind generation could reach as high as 24 gigawatts this afternoon, beating the previous record of 22.52 gigawatts last December.
As renewable energy outstrips demand on the national grid, energy prices turn negative.
Most households will not benefit from negative energy prices because their energy has already been bought, either via a fixed deal or a standard variable tariff, set by the energy price cap.
However, savvy households that use green tariffs to track the half-hourly price of wholesale markets could have a weekend of much cheaper energy.
When there is more green energy on the grid and prices go negative, some customers on tariffs like Octopus Agile can be paid to take energy off the grid.
Prices on Octopus Agile have not dipped into negative territory today, but the third-party Agile Predictor tool suggests it could later today.
It is predicting prices of 0p/kWh overnight and in the morning, falling to -1p/kWh in the afternoon low.
Agile tariffs are usually recommended to households that have electric vehicles, storage heaters, or anyone who can significantly shift their electricity use outside of peak times. They are particularly useful to those with solar panel and battery systems, who can stock up on cheap electricity and store it – or sell back to the grid.
Earlier this week, Ofgem’s price cap increased from £1,720 to £1,755. The price of electricity is 26.35p/kWH, while gas has fallen to 5.29p/kWh, but standing charges are on the rise again to 53.68p for electricity and 34.03p for gas.
The regulator and energy experts have urged households to take out a fixed tariff to cut costs this winter, with current deals offering savings of over £200.
Outfox Energy is offering the cheapest deal on the market, with a tariff priced at £1,523 a year for the average household.
Of the larger suppliers, Eon Next has a 12-month tariff priced at £1,635, while EDF is offering a 13-month tariff at £1,643.
You can find our full list of the best fixed energy deals here.
SAVE MONEY, MAKE MONEY
Sipp cashback
Sipp cashback
£200 when you deposit or transfer £15,000
4.51% cash Isa
4.51% cash Isa
Trading 212: 0.66% fixed 12-month bonus
£20 off motoring
£20 off motoring
This is Money Motoring Club voucher
Up to £100 free share
Up to £100 free share
Get a free share worth £10 to £100
No fees on 30 funds
No fees on 30 funds
Potentially zero-fee investing in an Isa or Sipp
Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence. Terms and conditions apply on all offers.
