13 Jun 13

EDF Energy responds to Ofgem’s market liquidity announcement

EDF Energy believes that further action can be taken to improve market efficiency and has outlined plans to the regulator to increase liquidity in the energy market.

EDF Energy supports market making arrangements which are best managed through voluntary agreements between exchanges and market participants. They are helpful to ensure that a set of products are effectively priced in the market, with risks reflected in the available prices.

More market liquidity depends on the number of market participants, and although currently effective, EDF Energy agrees with Ofgem that the market would benefit from more transactions. That is why we think that all market participants should be invited to contribute to market efficiency. We look forward to working with Ofgem on these details.