FOA close to releasing UK power trading guidelines

The UK Futures and Options Association (FOA) says it is close to releasing final drafts of guidelines on various areas of the UK power market. The problem areas identified by the FOA's Power Trading Forum (PTF) are reference pricing, credit risk management and clearing, documentation, regulation of commodity derivatives, and the role of the transmission system operator.

"UK power markets post-deregulation remain patchy," said Phil Levermore, chairman of the FOA' s Power Trading Committee. "We need to attract more participants. One way to do this is to commoditise the market more, and progress on reference pricing, credit and documentation issues will help achieve this."

Anthony Belchambers, FOA chief executive, said he could not give provide any concrete details of the proposals. "There are no deliverables as yet," he told Energy Risk. "All the guidelines