First empirical study on speculative positions of non-physical traders in UK electricity released
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Joseph Cary and Thomas Morstyn released the first empirical study on speculative imbalance positions of non-physical traders in the UK electricity system, covering 2021-2024. Based on settlement period-level entity imbalance data, counterfactual simulations were used to measure the impact of such positions on imbalance volume, balancing costs, imbalance prices, and related settlement costs. The study notes that the UK government plans to introduce new regulations to restrict such speculative position-taking by non-physical traders due to concerns about supply-demand balancing feasibility and related costs.
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- arXiv q-finThe Impact of Non-Physical Traders' Speculative Imbalance Positions on the Balancing of the UK Electricity System
The first empirical study on Speculative Imbalance Positions (SIP) of Non-Physical Traders (NPTs) in the UK electricity system covers the period from 2021 to 2024, conducting counterfactual simulations based on settlement period entity-level imbalance data.
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