A liquid electricity or gas market is characterised by more than one of the following: a wide range of spot and term contracts is traded on an energy exchange and in the OTC segment has been established, with spot and futures trading, while OTC trading has a wide range of standardised contracts to offer; the market is highly competitive and network access is very straightforward; there is a full range of market data available and many new participants are active in the market.
Regulation
There is a dedicated regulator, with proper authority and sufficient resources.
Choice of supplier
The choice of suppliers is available for all power and gas customers.
Network access
Straightforward network access, with clear rules and published tariffs.
Competition
The three biggest participants have a combined market share of less than 50%.
Trading
The market is very liquid (more than 400% of demand) for exchange-based, OTC, spot, futures and derivatives trading. There are more than 150 market participants and a forward curve which covers the next three years and beyond. Market prices are readily available.
Market information
There is a wide range of market data available and the sources are diverse.
Market entry
New market participants can enter the competitive market with their entire value creation chain.
