Energy supplier RWE npower is set to increase the amount of electricity it makes available on the open markets, which should improve liquidity in the sector.
This could allow smaller electricity providers to be more competitive, which will result in benefits for end users.
Chief executive of RWE npower Volker Beckers said: "Greater liquidity in the wholesale market helps competition, increases transparency and leads to fairer energy prices for our customers."
Under the agreement with the UK's wholesale market N2EX, RWE will make 30 per cent of its annual generation volume available through open day-ahead auctions.
Mr Beckers observed RWE npower has been leading the way in promoting liquidity in the UK power sector and is looking to continue improving the market through industry-driven initiatives such as this.
Earlier this year, Ofgem introduced new proposals to open up the energy sector to independent suppliers, which include increasing the amount of electricity the Big Six providers make available for auction.
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