Secure and Promote - October 2019 Update
Correspondence and other
Publication date
Industry sector
Generation and Wholesale Market
In November 2018, we highlighted that market participants should prepare for the suspension of the Secure and Promote Market Making Obligation if the number of remaining obligated parties reduced further. On 19 September 2019, we received a request from RWE Generation plc to remove Schedule B of Special Condition AA from Electricity Generation Licences held by the company following the sale of its shares in Innogy SE to E.ON on 18 September 2019. We are now considering this request.
In the event we release RWE from the MMO, we are minded to suspend the MMO licence condition. This reflects our concern that the policy could become less effective in meeting its objectives and that the remaining obligated parties could be subject to disproportionate and potentially unfair costs. Our position also considers other industry announcements that indicate the number of obligated parties could reduce even further to one. We welcome stakeholder views on this proposal.
Responses to this letter should be submitted to wholesalemarketoperation@ofgem.gov.uk on or before 06 November 2019.