U.K. Electricity: Pooling The Risk May 98
- ID: 1927300
- May 1998
- Region: United Kingdom, Great Britain
- Standard & Poors
Last October, the U.K. government ordered an inquiry into the workings of the electricity Pool in England and Wales. The industry regulator, the Office of Electricity Regulation (OFFER), was charged with producing proposals for a comprehensive reform of current trading arrangements by the summer that would lead to more competitive and transparent prices in the Pool, reduced volatility in prices, and greater liquidity in both the primary and secondary markets. The primary market involves the trading of electricity itself, while the secondary market involves the trading of contracts for hedging the financial risks associated with the buying and selling of power. The outcome of the inquiry may have implications for the credit quality of market participants. The precise credit impact...
Companies mentioned in this report are:
- Eastern Power Networks PLC
- National Power PLC
- E.ON U.K. PLC
- National Grid Electricity Transmission PLC
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