Consultation outcome

Re-coupling Great Britain electricity auctions for cross-border trade

From:
Department for Energy Security and Net Zero and Department for Business, Energy & Industrial Strategy
Published
30 September 2021
Last updated
24 August 2023 — See all updates
This was published under the 2019 to 2022 Johnson Conservative government

Applies to England, Scotland and Wales

This consultation has concluded

Read the full outcome

Re-coupling GB auctions for cross-border trade with the EU at the day-ahead timeframe: government response

PDF, 355 KB, 27 pages

Detail of outcome

The purpose of the consultation was to seek views on:

  • the current arrangements for trading electricity on power exchanges in the Great Britain (GB) wholesale electricity market
  • proposals to support efficient cross-border trading

Having considered the feedback, the government response confirms:

  • the introduction of a single GB clearing price in the day-ahead timeframe would be highly beneficial in supporting the UK to discharge its obligations under the UK-EU Trade and Cooperation Agreement. A single GB clearing price would support the efficient trade of electricity over interconnectors, as well as deliver broader benefits to the GB wholesale electricity market and its participants in trading electricity cross-border as efficiently as possible as part of and in any case in advance of multi-region loose volume coupling
  • the intention to legislate to achieve a single GB clearing price, subject to engagement with the Specialised Committee on Energy (the joint UK-EU governance structure established to ensure the proper functioning of the Trade and Cooperation Agreement – Energy Title), industry and stakeholders

The government response also addresses the following matters:

  • treatment of costs
  • legislation: arrangements for a Single Clearing Price
  • possible future interventions across other timeframes
  • possible future interventions across other borders, specifically the North Sea Link (NSL)
  • possible future interventions across other borders (Single Price All Borders)
  • future governance arrangements

Detail of feedback received

We received a total of 27 responses from a variety of respondents, including:

  • power exchanges
  • energy companies
  • trade associations
  • energy and commodity traders
  • energy solution providers
  • transmission system operators
  • energy system operators

The proposals were supported by a majority of respondents, while others provided useful feedback which the government will consider as part of ongoing policy development.

Original consultation

Summary

We're seeking views on the current arrangements for trading electricity on power exchanges in the GB wholesale electricity market and our proposals to support efficient cross-border trading.

This consultation ran from
to

Consultation description

Consultation deadline extended

We have extended the consultation deadline to Wednesday 3 November to allow more time for responses given capacity pressures within organisations.

The purpose of this consultation is to seek views on:

  • the current arrangements for trading electricity on power exchanges in the GB wholesale electricity market
  • our proposals to support efficient cross-border trading

The electricity market industry sector in particular may have an interest in responding to this consultation.

Read the BEIS consultation privacy notice.

Please don’t send responses by post to the department at the moment as we may not be able to access them.

Documents

GB wholesale electricity market arrangements: re-coupling GB auctions for cross-border trade with the EU at the day-ahead timeframe

PDF, 689 KB, 26 pages

Updates to this page

Published 30 September 2021
Last updated 24 August 2023 + show all updates

  1. We have published the government response.

  2. We have extended the consultation deadline to Wednesday 3 November to allow more time for responses given capacity pressures within organisations.

  3. First published.

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