The latest in market transparency was rolled out last week with the launch of a year-ahead focused electricity price index from benchmark transparency providers at Icis. For those keeping count: the UK’s electricity market is now subject to the daily scrutiny of market reporters, a daily bespoke transparency “index”, monthly market “snapshots” from Energy UK, and with a possible sector-led initiative currently under discussion behind closed doors.
Oh, and the Competition and Markets Authority. Let’s not forget that the power markets are currently subject to the glare of the highest competition regulator in the land and will remain so for the next 18 months.
So how much more transparency is needed?
When the news-reading population of the UK possesses wholesale energy market insight on a par with the average junior trading desk analyst, will this bring about a collective “a-ha” moment? Will all doubt over energy company dealings then evaporate?
Of course not. The UK’s gas and power markets are not some shadowy back alley where murky deals are done to the detriment of the consumer, despite what some journalists would have us believe.
For anyone interested enough – politicians, regulators, consumers – market information has always been available. But there’s a huge difference between understanding something and accepting it.
It turns out transparency drives which seek to build trust, need a little trust to start with.