Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, whether her Department has made a recent assessment of the adequacy of the liquidity of the electricity wholesale market.

The Department is aware that in recent years liquidity has been falling in the GB wholesale electricity market which has made it more challenging for suppliers and generators to manage their financial risks. Concerns over low liquidity were elevated in 2022/23 due to high and volatile wholesale energy prices, which have now stabilised somewhat.

As the electricity market regulator, Ofgem is responsible for ensuring that the wholesale electricity market is sufficiently liquid to provide efficient outcomes for consumers. The Department will also consider how to ensure liquidity is maintained in future market arrangements through its Review of Electricity Market Arrangements.