Mr. Evan Walker:

If the wholesale prices have increased on a moving average basis of about 417% and the retail prices have moved between 98% and 138%, that shows the effects of hedging. Some firms are not fully exposed, 100%, to the spot price. If they were, the consumer price increases would have been one for one - 417%, or in the UK, in many of these cases where firms operate just on the day-ahead market, they are out of business. It is just to highlight the effect of hedging. Hedging is a huge part of this market. For example, if there is a 417% increase in wholesale prices but that has not acted as a 417% increase in consumer prices, then it shows how important hedging is in this market, which is something we have to comprehend and verify fully when we implement this. It is difficult with visibility. We do not have full visibility of every hedging contract that is out there, nor will we.

Regarding this Bill, the objective, and it will be seen in the Bill, is not to define every hedging contract or financial instrument there might be. It is to give full breadth that we understand that these hedging operations are there and that we take account of them. We are giving full powers, as we can, to the CRU to verify, check and challenge that fully. That is the objective.