07-12-01 European and US energy regulators met in Rome to discuss energy market issues, including security of energy supply, William Nugent, president of the National Association of Regulatory Utility Commissioners, said. Officials recognized the need to give proper price signals to consumers and to have consistent rules to attract investment in new supply. In the US, he said, some states "have yet to move into a restructured world and their future supply situation is less clear."
Callum McCarthy, Ofgem CEO, told regulators that British supply security had been strengthened as a result of Britain's increasingly deregulated and competitive market. As a result of more competition, "we are at the moment enjoying an unprecedented level of energy diversity and supply," including a high investment in new power generation.

Great Britain has more than 30 % excess generation capacity, he said, adding that there had been no major supply interruptions since privatisation. But Jacques-Andre Troesch, commissionerof the Commission de Regulation de l'Electricite, said the California energy market and the Enron failure "have shown that deregulation of the energy market has not automatically lead to lower prices, better supply and greater security."
Proper regulation based on transparency and fairness is needed to ensure fair markets, he said, as well as the independence of the transmission and distribution grids from generators, suppliers and traders. That will strengthen market security and allow a common share of reserve capacities, he said.
Troesch also said strengthening the security of the physical market must be coupled with a sound, reliable power exchange market.