Ofgem’s final guidelines for market abuse condition

United Kingdom

On 31st January, Ofgem issued final guidelines for its proposed licence condition to prevent abuse of the wholesale electricity market by generators. The guidelines have been amended following a period of consultation with the industry and other interested parties.

The guidelines are being issued to help generators understand how Ofgem will enforce the new condition. The documents set out examples of abusive and non abusive behaviour and the procedures Ofgem will follow when investigating possible market abuse.

The seven generators who will initially be covered by the licence condition were chosen on the basis of their share of total output and their ability to set prices in the electricity pool. The generators are: National Power, PowerGen, TXU Europe, Edison Mission Energy, British Energy, Magnox and AES.

(Ofgem Press Release R/9)