How does the weather impact the price of electricity?
The weather can have a big impact on the market price of electricity because people may alter their behaviour, and consequently their demand for electricity, based on the weather. This is particularly true during the summer when hot weather drives up demand for electricity to power air conditioners. This is why summer electricity prices tend to be highest during the afternoon, which is typically the hottest time of the day. This is also why hot days tend to have higher overall prices than cooler days.
