Great Britain power wholesale market liquidity - position paper
Nov 13, 2018
Shell Energy Europe welcomes Ofgem’s recent decision not to suspend the Market Making Obligation at short notice. The Market Making Obligation helps to promote Great Britain (GB) power market liquidity by requiring some companies to offer standard wholesale products in daily market making windows.
Our position paper explains why a liquid and competitive power market is fundamentally important to deliver value for money for GB consumers. It also explains our view that the GB power market is less liquid than comparable markets, such as Germany and France, and that suspending the Market Making Obligation will result in a further deterioration of GB liquidity.
However, we recognise that market conditions continue to evolve and that the Market Making Obligation, in its current form, is at risk of becoming redundant. To address this risk, we intend to work in partnership with the government, regulator and industry to develop viable alternatives to deliver a sustainable and liquid GB power market in 2019.