Review of the England and Wales trading arrangements: The proposal to cure the ills by euthanasia of the pool

Rather than the extreme remedy that has been proposed, some fairly simple changes might go a long way toward reducing the possibilities of gaming, exercise of market power, and the problems associated with the interplay between gas and electricity markets. This article briefly describes the Pool and OFGEM's proposals. The authors then examine OFGEM's assertion that the suggested new trading arrangements will lead to better results and ask whether these arrangements are the only way to achieve the desired outcomes