GB Market Liquidity

ESP Consulting supported Ofgem and the Authority on the development of options for liquidity intervention in the GB power market, and in particular the potential role of mandatory auctions and market-making. This work, which we carried out in collaboration with Power Auctions LLP, brought international trading and market design experience to bear in developing the detailed design of a mandatory auction and a market maker including:

This assignment followed two previous assignments. First we assisted Ofgem with its initial review of liquidity in GB power and gas markets, and secondly we supported Ofgem on a review of market-making experience in other key power markets including the NordPool area and Germany.