Review of the Gas Market Operator (On-the-day Commodity Market (OCM)) arrangements
Correspondence and other
Publication date
Industry sector
Generation and Wholesale Market
Following our open letter in 2015 inviting National Grid Gas plc (NGG) to assess the existing market arrangements of the OCM, the Review Group led by NGG published its report in March 2016. The Review Group’s report found that introducing a fixed term retendering/benchmarking exercise of the market provision has the most merit of the options it considered.
We welcome this analysis, and agree that a further assessment to determine the magnitude of the benefits would be useful. We think it would be useful to understand how introducing retendering/benchmarking may work in practice.