Market Power

The SEMC, in its high level design for the market, indicated that it would develop any additional measures it believes appropriate to ensure that consumers are protected from the abuse of market power.

The abuse of market power includes the ability of a market participant to profitably raise the market price, restrict competition, raise barriers to others entering the market or slowing innovation.

The SEM currently includes market power mitigation measures.  The SEMC is also considering the potential for the exercise of market power in the I-SEM and the steps necessary to mitigate the abuse of market power.

Market power is therefore a key I-SEM work stream.  In May 2015, the SEMC published a market power discussion paper.  The paper introduced the market power work stream, provided a background to the potential policy issues involved and to seek views from stakeholders.  In November 2015 the SEMC published an I-SEM Market Power consultation paper which seeks stakeholder views on the proposed market power strategy and measures to be put in place for the new wholesale market.[LW1] 

All relevant documents can be found here: