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Six months after P305 implementation, warm winter offers few clues for future

The market is entering a tight winter period with little indication of the likely effect of a modification designed to sharpen price signals at times of scarcity and for parties ‘out of balance’.

P305 aimed to sharpen the signals of market scarcity, increasing liquidity ahead of gate closure and encouraging investment in flexible capacity. But it was also thought likely to drive parties to go long and the volatility was seen as a risk for small players.

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