A new Wholesale Market Report to be published by Energy UK will shine a light on the trading of power in the market. The report sets out the energy horizon at different dates, from the coming season to just a day ahead, so people can get a better picture of how average prices are changing over time.
Energy UK decided to produce the Wholesale Market Report to provide greater access to energy trading data and to make the energy market clearer and easier to understand.
Prior to the creation of the Wholesale Market Report, energy trading data was not generally available or easy to understand. This was because power is predominantly traded by brokers and others who must subscribe to data available only on broker screens.
Angela Knight, Chief Executive, Energy UK – the trade association which represents the Big Six utility companies, among others – said: “This new report demonstrates that there is currently a steady price for power with more power traded in the short rather than the long term.
“It also shows that the energy market is liquid with the total traded power for the three months – November, December and January – being three times higher than demand. “
The new report will always:
- Show what is happening in the market in the short and long term;
- Set out the wholesale price being paid for base load power; and
- Illustrate the differences in how energy is being traded in the short rather and the long term.
Angela Knight added: “The Wholesale Market Report is designed to shine a light on electricity trading and the price at which it is being traded.
“It shows the way prices vary from one maturity date to another and it is not surprising that, as the need to buy gets more urgent, the day ahead market shows much more volatility than the picture a season out.
“A good market is a liquid market where there is high turnover and significant volumes being traded. Overall liquidity in the wholesale electricity market is good.
“The Wholesale Market Report also shows there are ready and willing buyers and sellers and what is being bought and sold is easy to price and can trade without a significant price impact.”
The Wholesale Market Report – to be published monthly – covers the wholesale price of power for different dates of delivery and volumes, traded on the wholesale market. It does not give the daily price.
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