but under the cfd mechanism the treasury takes the excess over the strike price
It just means that the price is determined by the price where the demand curve crosses the supply curve.
I don't pay Johnnie Walker Blue Label prices for Jim Beam.
So it's more like this: I make a product for 5 and sell it for 6. My production facility is maxed, but there is still much demand. So I (or someone else) sets up another factory, making them for 8 and selling for 9 (there is demand enough). Now, will I keep selling at 6? No, my prices will also increase (to maximise my profit), and the final price will be where the demand curve crosses the supply curve.
I am wind, the new one is gass. We both make the same product, we sell at the same price, but I make a larger profit.
According to this comment https://news.ycombinator.com/item?id=46982118 there's additional "treasury" (is that the tax authority in the UK?) weirdness that prevents renewables from capturing these profits.
The CFDs are locked in at persistently high prices for decades. All these actions will increase costs to customers.
guidedlight•1h ago
They need to fix their market pricing mechanism before the public benefit from cheaper renewable energy sources.
jl6•42m ago
mjw1007•29m ago