The Forward Market in Electricity

The construction of the electricity market prior to the privatisation of the UK industry gave rise to an open market in physical electricity, known as the pool . It also gave rise to a completely new type of commodity risk for generators, suppliers and users of electricity: electricity price risk. Electricity prices in the pool are highly volatile: typically they average around £20/MWh, but sometimes fall to below £10/MWh and on occasion rise to above £300/MWh. These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.