ScottishPower has outlined plans to enhance the liquidity of the wholesale energy market in the UK, as well as committing to a campaign to contact small and independent energy suppliers to detail all the
ways in which it can help them to operate successfully in the market.
The company has confirmed it will trade a minimum of 30% of all the power it generates in Great Britain through the day-ahead auction on the N2EX exchange. It expects to reach that level by 1st March 2012. The energy regulator Ofgem had previously proposed that larger energy companies make available between 10% and 20% of their power generation into the market to help support independent market participants and encourage new entrants in to the market.
Beyond this, to help overcome further obstacles such as the up-front costs of accessing the market, ScottishPower already has a range of commitments in place to assist small and independent energy suppliers. The company has simplified its master trading agreements and provides trade notification services free of charge. It also offers smaller suppliers initial lines of credit, has streamlined financial regulatory compliance and trades in smaller blocks of energy.
ScottishPower now plans to write to all small suppliers who it has yet to establish a trading relationship with, in order to alert them to the assistance that is available.
Neil Clitheroe, ScottishPower’s CEO of Energy Retail and Generation, said: “We believe that our commitments will help to increase liquidity in the day-ahead market, and we hope that the N2EX exchange will offer small market participants the option to enter into wholesale power trades in a manner that suits their individual requirements.
“Where we have been able to already establish relationships with smaller suppliers, nearly half of all our trades have involved small sized blocks of energy. We are committed to trying to establish relationships with as many small and independent suppliers as possible, and we want to help as many participants as possible to be able to have access to the market.”
Media information: Simon McMillan - 0141 614 4582 / 07753 622 257