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“The final word is, energy trading is above board”
The UK’s wholesale power market is one part of the energy industry that was probably not holding its collective breath over the findings of the Competition and Markets Authority (CMA). Energy traders were certainly at their desks in time for the 7am publication of the much-anticipated report, but CMA-related concerns from the wholesale side of the energy space have long since dissipated.
And the report itself confirms why: there’s no abuse of power in the UK generation market, and no problem with how the vertically integrated players take part. In addition, concerns over a lack of transparency in power trading have also been dispelled by the CMA, which noted that trading data is available from market platforms by those who want it.
It could have been far worse. While the retail market looks to be subjected to a reincarnation of Labour’s price freeze pledge, the electricity market has escaped the party’s call for a return to pool trading.
But in many ways the CMA probe has always been about restoring public trust, and here is where energy traders might really have something to celebrate.
The traded markets are notoriously shy of any media glare and may now see an end to the recent curiosity of the national press. The final word, after years of reputational damage with each rigging scandal, is that energy trading is above board. The big six and their regulator still have a lot to answer for, but the trading desks will happily keep out of it.
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