Retail energy trading with Gethin Musk (Head of Trading @ OVO Energy)

Apr 24, 2025

Gethin Musk, Head of Trading at OVO Energy, offers a fascinating glimpse into the complex world of retail energy trading. He discusses the delicate art of hedging supply and managing customer risk amid market volatility. Gethin highlights the transformative potential of battery storage in reshaping energy costs and navigates the tension between innovation and pricing pressures. In an inspiring moment, he shares insights on entering the trading field, emphasizing adaptability and strategic thinking as key skills in this evolving industry.

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INSIGHT

Baseload Power Hedging Insight

Retailers purchase baseload power for their customers well in advance based on forecasted demand.
They then manage the shape and timing of consumption by buying peak and selling off-peak power closer to delivery.

INSIGHT

Liquidity Challenges for Retailers

Liquidity in the wholesale market is crucial but often insufficient for retailers to perfectly shape their portfolios.
Retailers face a constant challenge finding counterparties and prices to buy or sell the exact energy needed for their customers.

INSIGHT

Consequences of Imbalance Risk

If retailers mismanage their energy purchases, they face imbalance charges from the grid operator.
The cost of imbalance can be very high, so retailers hedge carefully to protect customers from shocks.

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Retail energy may seem like a simple business on the surface. Sell electricity, serve customers - but behind the scenes, it’s anything but. Every household bill is backed by a series of decisions: how to hedge supply, when to lock in prices, and how to manage risk across millions of customers. As volatility increases and decarbonisation accelerates, the pressure on energy retailers to get those decisions right is only growing.

In this episode of Transmission, Ed speaks with Gethin Musk, Head of Trading at OVO, one of the UK’s leading energy suppliers. Gethin gives a behind-the-scenes look at how retail portfolios are managed, why hedging is such a delicate balancing act, and how flexibility assets like batteries might reshape the future of consumer energy costs. Throughout the conversation, you'll hear about:

The fundamentals of retail hedging: What does it actually take to hedge a retail book and why is it more complicated than it looks?
Managing customer risk: How retailers like OVO protect their customers from price shocks, and what happens when volatility spikes.
The role of batteries in supply portfolios: Are flexible assets like storage a viable tool for smoothing retail exposure?
Innovation vs. margin pressure: How retailers are navigating the tension between net zero ambitions and competitive pricing.
Working in trading: Gethin shares what skills matter most, how his team is structured, and advice for those looking to enter energy trading from non-traditional backgrounds.

About our Guest

Gethin Musk is Head of Trading at OVO, where he oversees the company’s wholesale energy procurement and risk management strategies. With a background spanning utilities, trading, and market operations, he plays a key role in ensuring OVO’s retail portfolio stays resilient, cost-effective, and aligned with the broader energy transition. For more information, head to the OVO website.

About Modo Energy

Modo Energy helps the owners, operators, builders, and financiers of battery energy storage solutions understand the market - and make the most out of their assets.

All of our podcasts are available to watch or listen to on the Modo Energy site. To keep up with all of our latest updates, research, analysis, videos, podcasts, data visualizations, live events, and more, follow us on LinkedIn or Twitter. Check out The Energy Academy, our bite-sized video series breaking down how power markets work.