Single UK-wide power market will launch in 2004

A single UK-wide wholesale electricity market will be in place by October 2004, the UK government and its energy regulator said in January.

The new market, known as the British-wide electricity transmission and trading arrangements (Betta), will open the regulated market in Scotland to competition in line with England and Wales. The electricity sector in the fourth region of the UK – Northern Ireland – will continue under government regulation.

The proposed single market will extend the new electricity trading arrangements (Neta) operating in England and Wales to the Scottish market. While Scottish power prices are currently tied to Neta, customer choice in both the wholesale and retail markets is limited. The introduction of Betta will encourage free trade in electricity throughout mainland Britain and open the Scottish market to greater competition, says Ofgem.

The new rules will extend operational control of the electricity grid system in Scotland to the National Grid, the body that runs the grid in England and Wales. The Scottish grid is currently run by two utilities, Scottish Power and Scottish and Southern Energy, which between them own almost all Scotland’s generating capacity.

Launch date
The launch date is six months behind the original April 2004 date proposed by the Office of Gas and Electricity Markets (Ofgem), the UK energy regulator. Ofgem says the delay was caused by the UK parliament lacking the time to pass the necessary regulations and says the October 2004 date, too, is subject to parliamentary time being available.

The Department of Trade and Industry, the UK government agency responsible for the new market, has set a final deadline of April 2005 to have Betta in place.