Energy Markets and Trading

Emerging and Established Energy Trading Markets

Energy market liberalisation has led to the development of trading markets for energy (and emissions) products, providing opportunities, risks and significant complexity for energy company operations. Trading markets are underpinned by short-term contracts, energy trading risk management systems and a range of players, while energy trading arrangements have come under increasing regulatory scrutiny in recent years.

MJMEnergy has been involved in providing consultancy, training and research on emerging and established energy trading markets, covering gas, electricity, emissions, LNG, oil and coal. Key work includes development of the Energy Markets Training Programme for EFET, UK energy trading market entry studies, and courses on trading, hedging and market risk.

Consultancy Projects:

The following titles are examples of some of the energy consultancy projects that we have carried out in this area of expertise. (Clicking the title will provide more information.)

  • TECCS Service
  • The Energy Codes Changes Service (TECCS)

    The competitive gas and electricity markets in the UK are made possible by a series of industry codes enabling supply companies to gain access to gas and electricity transportation networks.

    This is a monthly subscription consultancy service based on providing clients with frequent, comprehensible, information on current proposals, including short summaries, and impact assessments and recommendations tailored to your company position.
    Currently we are offering this service for the Uniform Network Code (UNC) in gas and for the Balancing and Settlement Code (BSC) and the Connection and Use of System Code (CUSC) in electricity.

    For more information or a quotation for this service, contact us.

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  • UK and Germany Market Entry and Trading Study and Workshop
  • UK and Germany Market Entry and Trading Study and Workshop

    MJMEnergy provided a new entrant with a UK and Germany gas market entry and trading study and workshop, looking at opportunities, risks and operations in energy trading market, costs and benefits of becoming a gas shipper, and making recommendations for next steps in strategy development, including requirements for UNC Accession.

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  • Advice on Application of EU Network Codes to Merchant Pipeline
  • Advice on Application of EU Network Codes to Merchant Pipeline

    MJMEnergy advised IUK on the application of EU Network Codes to IUK’s UK-Belgium Interconnector business. MJMEnergy consultants commented on drafts of IUK’s proposals for implementing EU Network Codes, in particular Congestion Management Principles.

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  • EU Competition Enquiry Advice
  • EU Competition Enquiry Advice

    MJMEnergy, working in conjunction with Gas Strategies, provided advice to the EU’s Directorate-General for Competition on the development and interpretation of results of questionnaires sent to European energy market players, including transporters, suppliers and traders.

    The questionnaires were intended to assess the state of competition and identify barriers to competitive gas supply markets in EU states.

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  • UK Electricity Market Entry and BSC Accession Support
  • UK Electricity Market Entry and BSC Accession Support

    MJMEnergy provided consultancy services assisting MVV in the establishment of a UK electricity generation and trading facility, including meeting licensing and registration requirements and setting up fit for purpose systems.

    This included a series of workshops and meetings with MVV staff, and ongoing support for an extended period, to support the development of Energy from Waste generation projects in the UK.

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  • UK Energy Company Structure Advice
  • UK Energy Company Structure Advice

    Spark Energy approached MJMEnergy Ltd requesting consultancy support in determining the structure, operations, feasibility and risks of establishing an Enterprise Investment Scheme company for UK gas trading, as well as ongoing support, if it was required with establishment of this business. MJMEnergy provided Spark Energy with a study outlining the options establishing an EISco and recommendations for the way forward.

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Training and Capacity Building:

The following are examples of some of the energy training and capacity building we have carried out that is relevant to this area of expertise. (Clicking the title will provide more information.)

  • Energy Markets Training Programme (EMTP)
  • Energy Markets Training Programme (EMTP)

    In 2008 we were asked to build an online training platform for EFET which comprised of 6 training modules and a quiz at the end of each.

    The main objective was to provide a training platform which would help their members standardise the Back Office tasks.

    Over time additional modules were added and in 2015 we overhauled the entire system to bring content up to date and enable the platform to give the user the opportunity to work through the modules using mobile or desktop, whichever is prefered.

    To date over 1300 people have used this system from over 40 companies.

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  • UK Gas Hedging and Optimisation
  • UK Gas Hedging and Optimisation

    Course Description

    During this day you will gain an understanding of the complexities of trading gas in the UK. We will explain the concepts and then let you enjoy the consequences of your decisions as you attempt to balance your supply and demand position in our Gas Trading Game. Warning, this is not for the faint hearted!

    Course Content

    • UK Gas Market Principles, Processes and Regulation
    • UK Gas Supply & Demand Overview & Trends
    • UK Gas Market Structure, Instruments & Price Behaviour
    • What are options?
    • Gas Market Risks
    • Gas Trading Game
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  • Uniform Network Code Course
  • Uniform Network Code Course

    The day starts with an introduction to the Uniform Network Code (UNC), building on that with a detailed look at entry capacity and exit capacity, the UNC modification process, energy balancing and system security, rounding off with the customer interface.

    This one-day course explores:

    • Introduction to the Network Code
    • Entry Capacity of Gas
    • Exit Capacity of Gas
    • The Network Code Modification Process
    • Energy Balancing and System Security
    • The Customer Interface

    The next public course date is:

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  • Influencing Commercial Outcomes
  • Influencing Commercial Outcomes

    Centrica's leadership development programme required a bespoke Influencing Commercial Outcomes course.

    Over three-days we provided hands-on negotiation and market simulations as well as expert seminars on key issues of relevance.

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  • Energy Markets Course
  • Energy Markets Course

    This three day course provides a thorough understanding of the dynamics of the gas and power industry. The main focus being: physical gas and electricity systems, commercial energy markets and energy trading.

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  • Emissions Trading Course
  • Emissions Trading Course

    This fast paced day will explore the past, present and future of trading emissions and how that may help combat climate change. The course will explain the various acronyms as well as how to trade in this market.

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  • Global Oil Market
  • Global Oil Market

    You will learn about the charactaristics of oil, how the terms upstream, midstream and downstream relate to this industry, what makes the price of oil and how it is traded.

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Energy Publishing:

The following titles are examples of energy reports that we have written, published or sell and are included to complement this section. Feel free to click on the titles for more information.

  • The Gas Trading Manual
  • The Gas Trading Manual

    Edited by MJMEnergy associate David Long, with Geoff Moore and Gay Wenban Smith, the Gas Trading Manual (GTM) established itself as a leading information source on the international gas market. Compiled from the contributions of some of the most senior and widely respected figures in the trade, this edition provided detailed and accurate analysis on all aspects of this complex business from the geography of gas through to the markets, trading instruments, contracts, gas pricing, accounting and taxation.

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  • The Oil Trading Manual
  • The Oil Trading Manual

    Edited by MJMEnergy associate David Long, the Oil Trading Manual (OTM) provided a unique and comprehensive reference source to the structure and conduct of the international oil markets including:

    • Physical characteristics and refining
    • Oil pricing arrangements
    • Physical oil markets
    • Forward and futures contracts
    • Options and swaps
    • Operations and logistics
    • Accounting and taxation
    • Controlling financial risk
    • Legal and regulatory control

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  • The Long Term Capacity Auctions
  • The Long Term Capacity Auctions

    Shippers wishing to deliver gas into Transco's supply system are required to hold entry capacity rights. Entry capacity is available at the six major beach terminals, as well as a number of smaller entry points. Capacity is variable depending on demand and network flows. The cost and availability of entry capacity is major factor in UK gas producers and shippers profitability.

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Key staff and associates:

  • Mike Madden
  • Nick White
  • David Long
  • Jeremy Bending
  • Chris Le Fevre
  • Ben Farrington
  • David Haynes