Ofgem published on Wednesday 3 August an annual review of the GB wholesale market. The market’s performance was assessed against four fundamental features of a well-functioning wholesale market: security of supply, access and liquidity, competition, and investment and sustainability.
Among the report’s findings was that the GB power market appeared relatively illiquid when compared with some international markets; there were signs of improvement since the regulator’s Secure and Promote intervention, but it was too soon to draw robust conclusions. Liquidity was said to be clustered in the near-term markets and baseload contracts.
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