Texas regulators have voted to double the price cap for wholesale electricity over the next three years, according to media reports.
In a move to encourage investment in new generation, the Public Utility Commission of Texas unanimously approved raising the cap to $5,000 a megawatt-hour on June 1, 2013, $7,000 a megawatt-hour on June 1, 2014, and $9,000 a megawatt-hour on June 1, 2015, Bloomberg reports.
Prices are currently limited at $4,500 per megawatt-hour.
The Electric Reliability Council of Texas, which operates the state’s main power grid, has warned that there will likely be more rolling blackouts in Texas in the coming years because it says supply hasn’t kept pace with demand, Reuters reports.
The new cap could give incentives for power producers in Texas including Luminant, a unit of privately held Energy Future Holdings, NRG Energy, Calpine Corp, NextEra Energy and Exelon Corp, the news organization says.
Meanwhile, in the UK, some 3 million EDF Energy customers will see their energy bills increase 10.8 percent as of Dec. 7, according to media reports.
It is the fifth major energy firm to announce an increase in recent months, following Scottish Power, nPower, British Gas and SSE.
EDF’s is the biggest average increase so far, according to the BBC, which says the company blamed the price hike on the cost of wholesale energy and government energy-efficiency mandates.
Eon is now the only large supplier that has not raised prices. According to the Financial Times, Eon has pledged not to change its prices before the end of the year, but is expected to announce an increase at the start of 2013.
Photo Credit: Electric Reliability Council of Texas