Wholesale power market liquidity: Annual report 2016

Publication date
3rd August 2016
Information types
Policy areas

This is our second annual report on liquidity in the wholesale electricity market since our licence obligations to promote liquidity came into effect in March 2014. These licence obligations are intended to help improve independent suppliers’ access to the wholesale market and ensure that the market provides the products and price signals that companies need to compete effectively.

We have been monitoring the effects of the reforms both to assess their impact and for compliance. This report shows our results from monitoring since March 2014. The results show a notable improvement in liquidity in the wholesale market over the two years, albeit with a decline in the middle two quarters of 2015. There are many factors that could have contributed to the results we are seeing so far, and although it is difficult to draw definitive conclusions at this stage, we are cautiously optimistic about the impacts of the policy. We continue to monitor the effect of our reforms.