Obstacles in the UK power market

UK power market reform

In 2009, UK power market trading volumes were 4.3 times the size of its physical market. A figure dwarfed by the Nordic region’s churn ratio of 6 despite the UK and the Nordic region having the same underlying consumption levels. Experts say the key barrier to the UK reaching its full liquidity potential has been the dominance of the ‘big six’ utilities, which has discouraged the entrance of smaller players and preventing the development of healthy retail competition. Now the UK regulator has

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