This call for input seeks to explore and assess current power market liquidity trends, issues, and concerns, following the suspension of the Market Making Obligation in 2019. We set out some of our analysis of the trends, as well as our views on some potential drivers of liquidity levels today.
We are seeking views and supporting evidence from industry on the trends and drivers of liquidity in the GB wholesale electricity market; whether there is sufficient liquidity to meet the needs of market participants; and whether there is a need and scope for a regulatory intervention to support liquidity in the short-medium term. We would like to understand stakeholder views on liquidity trends, how it may be impacting businesses, and what may drive liquidity in the future.
Please send responses and supporting evidence in writing to WholesaleMarketPolicy@ofgem.gov.uk.
