The Evolution and Functioning of the Traded Gas Market in Britain

The Oxford Institute for Energy Studies has just published a study by Patrick Heather on the evolution and functioning of the traded gas market in Britain. Trading has revolutionised the commercial operation of the British gas market since the mid-1990s and promises to have a similar impact in Continental Europe in the 2010s. Yet it is very difficult for those outside the industry to understand exactly how gas trading evolved and how it operates. This study traces the rise fall and rise again of trading since the 1990s explaining the institutions regulation and contractual mechanisms which underpin trading. It is the first study to fully explain the operation of the traded gas market in Britain.

Eastern Europe's energy challenge: meeting its EU climate commitments.

This new paper calls for a new EU energy and climate deal in which east European member states would be required to do more - but also be paid more - to increase renewable energy and improve energy efficiency. David Buchan argues Brussels is right to look east for further emission reductions and that extra money can be found for the 10 new member states there by redirecting funds within the existing EU budget and by Europeanizing national renewable energy subsidies. The 76-page study traces central and eastern Europe's considerable progress in transforming its energy system since emerging from communism 20 years ago but warns its governments that they 'cannot be easily helped more if they will not help themselves' by giving climate change the same priority as energy security.

The June 2010 Russian-Belarusian Gas Transit Dispute: a surprise that was to be expected

Katja Yafimava argues that the June 2010 Russia-Belarus gas transit dispute should not have come as a surprise to Europeans. The January 2007 supply and transit contract was more of a ‘work in progress’ rather than a finished contract and its lack of clarity and transparency about price methodology and the relationship between prices and transit fees contributed to the dispute. Another contributory factor was Belarus’ desire to improve its economic conditions (adversely affected by the 2008 economic crisis and the 2010 changes in Russian oil export regime) and postpone a transition to European ‘netback’ gas prices until 2014-2015 before its bargaining power vis-à-vis Gazprom declined further with the completion of the Nord Stream pipeline in 2012. Decreasing Russian government tolerance of Belarus may have made achieving this aim even more difficult and the dispute more likely.