file-o file-pdf-o file-word file-excel file-powerpoint file-image file-archive file-audio file-movie file-code file-openoffice file-css menu googleplus facebook instagram twitter feed youtube vimeo2 lanyrd flickr picassa deviantart github wordpress blogger tumblr yahoo soundcloud skype linkedin lastfm delicious stumbleupon stackoverflow pinterest foursquare cross arrow-left arrow-down arrow-up arrow-right arrow-left2 arrow-down2 arrow-up2 arrow-right2 arrow-left3 arrow-down3 arrow-up3 arrow-right3 search

You are here

FIA submits response to Ofgem Secure and Promote Review Consultation Paper

FIA submits response to Ofgem Secure and Promote Review Consultation Paper

20 September 2017 1:45pm EDT

On 19 September, FIA submitted a response to the Ofgem Secure and Promote Review Consultation Paper published on 25 July 2017.  The consultation explores the impact of the Secure and Promote licence condition on liquidity in the market and if further changes are required to the license condition.

FIA’s response to Ofgem, the regulator for gas and electricity markets in Great Britain, highlights a lack of evidence that the liquidity windows have promoted greater access to non-standardised products. Although it is recognised that the Supplier Market Access Rules to some extent resolve the issue for smaller market participants. FIA members identify Financial Power Swaps as an instrument that should be included in Ofgem’s assessment of liquidity. Furthermore, we suggest that Ofgem consider:

  • Making changes to the MMO ahead of the expected seasonal rise in volatility;
  • A reduction in the Fast Market Rule threshold; and
  • Varying the levels of MMO depending on market conditions to ensure continued flexibility of the obligations.

Finally, it is recognised that the market has changed dramatically since the introduction of the Secure and Promote special license condition. For this reason, members encourage Ofgem to conduct a review of the policy to assess its validity.  

The full response can be found here.  

Advertisement
Advertisement

Close

Close

Menu

Menu

Back to FIA