Oscar Wilde famously wrote that people “know the price of everything and the value of nothing” suggesting there is a difference between the two concepts of price and value. In the power market, due to some of its structural features, it is even more confusing as you also need to deal with the cost of power, which may again be different.
The below, derived from an article I wrote almost 15 years ago, tries to make sense of the differences between the 3, and how these are ultimately decided by political choices.