SPARK SPREAD

Spark spread is the discrepancy, that may be positive or negative, between the electricity price in the market and the cost of producing it. A negative spark spread indicates a loss in the utility company. A positive spark spread means a profit for the utility company. The spark spread is used by utility companies to know the bottom lines or their earnings. For example, a small spark spread might spur the utility company to delay and wait for a more a spread that is more profitable.