BEIS (the UK government Department for Business, Energy and Industrial Strategy) yesterday (Wednesday 3rd November) closed its consultation on re-coupling the GB day-ahead electricity auctions. The purpose of the consultation has been to seek views on the re-coupling of GB auctions for cross-border trade with the EU in the day-ahead timeframe.
For Nord Pool, the core issue here is shared order books (that is, shared trading liquidity) across both day-ahead and continuous intraday timeframes and between GB power exchanges. The market setup as proposed in the BEIS consultation seemingly ignores the critical inter-play between these two markets.
We have been a long-term supporter of, and campaigner for, shared order books in all timeframes and have spelled out to BEIS why we think action on this front is needed now (you can read our whitepaper on the future of GB power trading here). This is particularly pressing in the context of the increasing importance of the continuous intraday market, as the GB generation mix continues to be enriched by renewable generation.
Without a ‘level playing field’ between the power exchanges in the GB market across both day-ahead and continuous intraday timeframes (facilitated through shared order books across both markets) market participants and, ultimately, GB consumers cannot reap the benefits that come from genuine competition.
Now is a prime opportunity for UK policy makers to bring about arrangements for efficient markets across both day-ahead and continuous intraday, concurrently. This would provide the desired certainty on the regulatory framework and market design for power exchanges and market participants respectively and thereby secure and incentivise further investment in GB exchange-traded electricity markets for the benefit of GB consumers.
As Nord Pool, we recognise the key role we will play in supporting BEIS and GB stakeholdersto overcome this critical challenge for the GB exchange-traded electricity markets.
More information on the recent BEIS consultation can be found here.
About Nord Pool
Nord Pool, Europe’s leading power market, delivers efficient, simple and secure trading across Europe. The company offers day-ahead and intraday trading, clearing and settlement to customers regardless of size or location. Today 360 companies from 20 countries trade on Nord Pool’s markets.
Nord Pool operates markets in the Nordic and Baltic regions, Germany, Poland, France, the Netherlands, Belgium, Austria and the UK. Nord Pool is a Nominated Electricity Market Operator (NEMO) in 15 European countries, while also servicing power markets in Croatia and Bulgaria. In 2020 Nord Pool had a total turnover of 995 TWh traded power. The company has offices in Oslo, Stockholm, Helsinki, Tallinn, London and Berlin.
Nord Pool has 25 years of power market experience built on offering flexibility, transparency, innovation, greater choice and participation to our customers.
Oslo, 4 November 2021
For further information, please contact:
Stuart Disbrey, +44 7887 409044 - email@example.com