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by sdnas211 1382 days ago
Electricity demands can't be met without gas power plants. As there is sufficient demand (able to absorb the price at the moment, however high it may be), electricity prices converge on gas prices + generation costs (and some profits, probably).

The only way to unpeg it from the price of gas (without changing the market itself) would be for demand of electricity to drop below levels that necessitate gas power plants, or for supply of gas to increase to surplus levels.

1 comments

What's bothered me is the opposite, why is electricity approx. 4x the cost of gas per kWh? It can't be that inefficient to generate electricity from gas, surely?