<p>Industry has already taken some steps to address the problem of low levels of power market liquidity and transparency, leading to better conditions in the day-ahead market. However, forward market liquidity remains a particular concern.</p><p>Ofgem is leading reforms in this area and are currently consulting on measures aimed at locking in recent progress and promoting further improvements to improve both liquidity and transparency across the wholesale market.</p><p>Given the significance of liquidity and transparency in promoting competition and supporting independent market participants the Government will be seeking powers in the Energy Bill to act should Ofgem and industry be unable to secure the progress that is necessary.</p>