CPS increases the marginal price of electricity

Illustrative impact of CPS in driving wholesale electricity prices higher (£/MWh)

Gas price breakdown assumes 50% efficiency (GCV basis), gas price of 80p per therm, UK ETS price of £57 per tonne and CPS price of £18 per tonne. Carbon intensity assumed at 0.18296 tonnes CO2e per MWh (GCV basis)
Chart: Centre For British ProgressCreated with Datawrapper