RWE npower claims it will be selling a third of its electricity generation in an agreement with N2EX, a wholesale trading market. The energy supplier will hold open auctions and believes the day-ahead trading will add liquidity across the electricity market.
The power company says trade in wholesale markets helps competition and gives a fairer energy price to consumers. It also suggests focusing on a market with a natural demand and supply for products helps increase liquidity and confidence in price.
Volker Beckers, CEO of npower said: “The UK has one of the most competitive retail and wholesale markets in Europe and it is through market-driven initiatives that industry can continue to improve liquidity in the forward markets.”
Mikael Lundin, Chief Executive Oficer of Nord Pool Spot added: “Its decision is another great vote of confidence in the development of the UK power market and in its ability to produce a robust and reliable index price for power trading.”