Libra Consortium Bid to Provide New UK Electricity Trading Arrangements

The IPE has joined up with three other leading companies to offer a new market in electricity, bringing power into line with the trading of other commodity and energy products. The IPE has joined forces with PricewaterhouseCoopers, ABB Energy Informaton Systems and Energy Settlements and Information Services (ESIS) to draw up a complete and unique solution to the requirements listed by the National Grid Company (NGC) and Office of Electricity Regulation (OFFER). The group, known as the Libra consortium, has submitted its proposals in response to NGC's invitation to come forward with solutions that will support the Reform of Electricity Trading Arrangements (RETA) programme initiated by OFFER and the UK Department of Trade and Industry (DTI). The members of the consortium were selected for their expertise and experience of implementing and operating energy markets in the US, Europe and Australia, as well as the UK. The RETA reforms are being promoted by OFFER as the means of streamlining the arrangements for wholesale electricity trading that have operated since privatisation, The new generation of wholesale markets - which will supercede the Electricity Pool - will introduce bilateral trading in a form that is well established in other commodity markets. An integral part of the new market - the Power Exchange - will be linked to the highly technical grid control systems by means of a balancing mechanism. Between them the four members of the Libra consortium offer a full range of systems and services to meet the RETA requirements. Richard Ward, Executive Vice President of the IPE, said "the Libra consortium has been designed to offer the best possible mix of knowledge about market development and delivery, systems and operations capability. We believe that together we can meet the requirements listed in the RETA programme and help to deliver much needed reform to the UK electricity sector". The RETA programme is regarded by OFFER as a priority development in its drive to increase competition in electricity generation. Colin Sawyer, utilities consulting partner at PricewaterhouseCoopers, commented "the Libra consortium will allow the new trading arrangements to be implemented quickly and without unnecessary redevelopment".