Ofgem unveils electronic gas trading market

The Office of Electricity and Gas Markets (Ofgem) has unveiled the latest screen based on-the-day trading market for the wholesale supply of gas.

The updated trading system will allow shippers to trade between themselves and BG Transco, the operator of the national transmission system.

So far, 21 participants, accounting for 90 per cent of the gas market, have signed up to trade using the electronic system managed by EnMo.

Callum McCarthy, director general of Gas Supply, claimed the system replaced a trading arrangement that offered no incentive for Transco to buy and sell gas at the most economical price.

Ofgem is working on a similar system for the electricity market. The New Electricity Trading Arrangement (NETA), which will replace the existing electricity pool, is scheduled to be operational next October.