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UTILITY WEEK | 4TH - 10TH DECEMBER 2015 | 29 Markets & Trading This week Rising bills prompt competition fears EU householders faced rising energy bills in 2014 despite falling prices on wholesale markets Energy bills across the European Union remained stubbornly high for households last year despite falling market prices, raising concerns about competition among EU energy regulators. A report from the Agency for the Cooperation of Energy Regu- lators (ACER) and the Council of European Energy Regula- tors (CEER) said average energy bills increased in 2014 despite falls in wholesale market prices. "This fall had a positive impact on the prices paid by industrial consumers, but oen not on the energy bills of residential customers," the report said. On average, EU electricity bills rose by 2.6 per cent compared to the previous year, and gas bills rose by 2.1 per cent. The report calls on member state regulators to fully implement the gas and electricity target models, inte- grate renewables into the energy system at least cost, and use cross-border network capacity efficiently. ACER director Alberto Pototschnig said: "Whilst half of the household bill is noncontestable, the other half is open to competition. There needs to be competi- tion at both wholesale and retail level to ensure that EU energy consumers reap the full benefits of market liberalisation." Lord Mogg, chair of Ofgem, ACER's board of regula- tors and CEER president, said: "More than 80 per cent of EU energy consumers remain with their original suppliers seven years aer retail market liberalisation. Promoting well-functioning retail markets is therefore a core focus for regulators." JA ENERGY Power trader plans market comeback The UK's largest power trading exchange believes its relaunched intraday trading platform will help it regain market share lost to its smaller rival. N2EX pulled its intraday trade offering from the market in March 2014 for an overhaul, and rolled out the first phase of a revamped web-based interface on 10 November. "Over the coming weeks our members can expect to see some exciting new features in Intraday Web which we believe will fur- ther contribute to the excellent user experience of the platform," the exchange said. Features include a split market information screen, improved product sorting and improved platform settings. The relaunch could help the exchange reclaim market share from smaller rival APX which in recent months eroded N2EX's market share. WATER Trading will bolster water supply system Water trading will help build a more resilient water supply, miti- gate climate change risks and reduce the impact on customers, according to Welsh Water. The company said in a dra trading and procurement code that water trading "widens the pool" of potential resources it can draw on. At PR14 Ofwat introduced water-trading incentives to encourage trade between incum- bent companies. These firms can only receive the PR14 water-trad- ing incentives if they produce, and comply with, an approved trading and procurement code. Ofwat wants to ensure cus- tomers and the environment are protected in water trades and is consulting on whether or not to approve Welsh Water's code. The consultation will close on 12 January 2016. ELECTRICITY South Humber Bank to return to service Centrica has confirmed plans to spend £63 million to reinstate South Humber Bank power sta- tion, bringing the gas-fired plant back into full service by 2017 and extending its life until 2027. The announcement follows minister Amber Rudd's 'reset' of energy policy, in which she outlined the government's com- mitment to gas-fired generation. Centrica will work with GE to overhaul the gas turbines at the part-mothballed station in North East Lincolnshire. The plant will return to full service in time for the start of its capacity market contract in October 2018. Centrica won the contract in June this year. Is competition working for retail customers? Tricks of the trade Jillian Ambrose "Jump to transparency – it won't always be optional" It's an odd thing to accuse a trader of profiteering. Much like accusing a lawyer of always looking for a loophole, or a salesman of putting a posi- tive spin on a product, the criti- cism cuts straight to the point of the profession. Traders exist to turn a profit, mitigate losses and otherwise optimise a firm's financial position within a given market. The job is to make money. And it's a job that is only becoming more difficult as conventional anyone breaking the rules? Early analysis of the events seem to suggest that Calon was operating well within the current rules. Viewed objectively, Calon took a calculated punt on secur- ing much-needed profit to prop up its operations in an otherwise unprofitable environment. Can you blame a trader for doing the job, and doing it well? Maybe not. But then you can't blame a politician for wanting to be seen to be holding the market to account either. generation profits shrink almost as quickly as capacity margins. But traders have another problem to contend with this winter – the political fallout if they prove to be too good at their jobs. The Energy and Climate Change Committee is understood to have asked Ofgem to investi- gate the now infamous events of 4 November when Calon Energy used a capacity crunch to earn £2,500/MWh from a plant that just hours earlier had begun winding down generation. With the political risk of a power outage looming, it's not what politicians want to see. But the real question should be: is