Robert Best

You know, somebody who is in the past said that the pricing system should be changed.

But it's probably worth my just explaining to listeners the slightly surreal nature of our pricing system.

We're going to do marginal pricing.

And we have this ridiculous system.

where people bid into, what is it called?

What's the ESO stand for?

The...

Basically, the way the market works is everybody bids their energy into the system.

And then it is the marginal price that clears the system that sets the price for everybody.

And the marginal price is usually...

The world price of gas.

And that means that... I mean, and there are so many madnesses about the way that we price power, which I do want to talk to you about.

You know, you are a wind farm and your marginal cost of production is basically nil.

And yet you are being remunerated at the cost... Of a gas plant.

Of a really expensive gas plant.

And that is just...

I mean, you know, when you just describe it in that way, and I understand the economics of why they've done it in that way, but when you just say it out loud, you just think, this is insane.

But you could have a situation, a system, where the purchaser, on behalf of all of us, simply paid the marginal cost

of each producer.

So, you know, you can basically say with a wind farm, all right, you've got some sunk capital costs.