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News 18 November 2019

Storengy UK auction update

Storengy UK successfully sold over half  (870 GWh sold) of the storage capacity for the next storage year (2020/21).

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Storengy UK successfully sold over half  (870 GWh sold) of the storage capacity for the next storage year (2020/21) that was made available at last Wednesday’ auction. There was again a very high level of interest in acquiring storage capacity at our Stublach site in Cheshire, with bids for more than eight times the overall capacity available, and upstream, utility and trading businesses all well represented.

Storengy was also delighted to be able to sell capacity for the following storage year (2021/22) in Wednesday’ second auction, with around 10% of the capacity made available for auction sold, almost 18 months ahead of the start of the storage period. This is the first time that Storengy has offered capacity at auction beyond the next storage year, and it again attracted a lot of interest from bidders with bids for more than seven times the capacity on offer.

Several potential bidders did not bid in the auctions primarily due to the uncertainties in the market around the Gas Charging Review that will affect the pricing of NTS Capacity (Exit and Entry). In the absence of any clear direction from Ofgem, most other bidders have told Storengy UK that they have been forced to submit lower bid prices as a result of these uncertainties.

The reserve prices for the Storage Product bundles are agreed internally before the beginning of the auctions, these are not disclosed publicly.