Ofgem, Great Britain’s National Regulatory Authority (NRA) yesterday issued this open letter to the market on the topic of “scarcity pricing” and conduct. It reminds market participants that generation must be priced economically both under REMIT and also the Balancing and Settlement Code.
This letter represents the latest anti abuse activity in the energy sector, following several investigations and other interactions over the last few months. Despite the Market Abuse Regulation(MAR) applying from 3rd July this year, much of the regulatory activity has been under REMIT. Both rulesets combined have increased the focus on effective monitoring, via processes, training and technology, across the energy and commodity trading sector.