FSA and Ofgem joint announcement on regulation
FSA/PN/105/2000
07/08/2000
07/08/2000
Participants in the New Electricity Trading Arrangements (NETA) will not require authorisation under the Financial Services Act 1986 for dealings under the Balancing and Settlement Code. This exemption has been agreed by HM Treasury.
In a joint announcement today, the Financial Services Authority (FSA) and energy regulator Ofgem confirmed the arrangements that will apply to NETA under the Financial Services Act 1986. HM Treasury, the FSA and Ofgem are continuing to discuss the future arrangements for NETA under the Financial Services and Markets Act 2000 which is due to come into effect during 2001.
NETA is expected to go live in November 2000.
Notes for editors
- A detailed announcement by the FSA and Ofgem is available on the websites.
- Ofgem is the office of the regulator for the gas and electricity industry, which was formed in June 1999 to protect the interest of consumers, ensuring they get genuine value and choice, by promoting effective competition in both gas and electricity markets and regulating monopolies.
- The FSA regulates the financial services industry and has four objectives under the Financial Services and Markets Act 2000: maintaining market confidence; promoting public understanding of the financial system; the protection of consumers; and fighting financial crime.
- The Balancing and Settlement Code sets out rules for the balancing mechanism and settlement process under NETA.
- Section 46 of the Financial Services Act 1986 gives the Secretary of State the power to exempt by order persons from the need to become authorised to carry on investment business in the United Kingdom.
- The Exemption Order will be laid soon after Parliament's summer recess ends on 23 October 2000 and will come into force 21 days later, on or before NETA goes live.
- The Financial Services and Markets Act 2000 is due to be implemented in approximately a year's time.