Exchange Council welcomes results of post-Brexit arrangements
Satisfaction of members increases, Council elections upcoming
Paris, 11 March 2021. At the quarterly meeting of the EPEX SPOT Exchange Council, the members praised the smooth operational transition following the post-Brexit arrangements for the UK electricity market. With the end of the post-Brexit transition period, the GB Day-Ahead auction has quit the European Union’s framework of the Single Day-Ahead Coupling. In close cooperation with market participants and relevant stakeholders, EPEX SPOT has moved the Day-Ahead auction from 11:00 GMT to 9:20 GMT, with results being available at 9:30 GMT. The transition process went smoothly. Since the shift happened, a growing number of members have been active on the UK market, resulting in sustained volumes and a robust price signal. Bernhard Walter, Chairman of the EPEX SPOT Exchange Council, comments: “In times of political uncertainty, it is of utmost importance to provide operational continuity and as much business certainty as possible for critical sectors such as electricity trading. Even though the organized electricity market in the UK has been decoupled and split, EPEX SPOT has managed to fulfill the market’s need for a reliable platform with a clear price signal.” Ralph Danielski, CEO of EPEX SPOT, adds: “The current situation is transitional. We are working jointly with TSOs and regulators on a future framework for an efficient long-term connection between the UK and the European Internal Energy Market.”
Furthermore, the Exchange Council welcomed the successful launch of the Polish Day-Ahead market of EPEX SPOT on 9 February 2021 (first trading day) in close cooperation with ECC. This was enabled through the Polish Multi-NEMO Arrangement implemented on the same day. During the first full 4 weeks, 60,820 MWh have been traded on the Polish Day-Ahead market of EPEX SPOT. “With unique blocks fitting the Polish energy mix and cross-margining clearing, we provide a new stimulus to the power trading sector in Poland” says Jonas Törnquist, Chief Operating Officer of EPEX SPOT. Bernhard Walter complements: “Having more and more European countries on one single screen is an important efficiency gain for the electricity trading community.”
The Exchange Council also welcomed the successful launch of the After-Market contracts in Belgium and in the Netherlands on 27 January 2021. These products enable market participants to trade local hourly and 15 minute contracts even after delivery, until 12:30 pm CET for the Belgian market, and until 8:30 am CET on the day after delivery on the Dutch market. By balancing their positions even after delivery, when all the final information on production and consumption is available, members are able to reduce their imbalance costs.
The Exchange Council was informed about the results of the annual customer satisfaction survey – this time in the light of the Covid-19 pandemic. General satisfaction reached 91%, driven in particular by high satisfaction of our commercial and operational services. “All in all, the improvement on services despite the pandemic shows how EPEX SPOT quickly and successfully adapted to this unprecedented situation” says Ralph Danielski.
Last, the Exchange Council was informed about the upcoming elections, which are held every 3 years and which will take place in May this year. Amongst other aspects, the Exchange Council is tasked with the responsibility of:
- reviewing the adoption of rules (Exchange Rules, Code of Conduct),
- taking decisions related to the introduction of new trading systems,
- approving decisions to introduce new contracts or market areas.
The Exchange Council consists of 28 permanent members and invited guest members such as TSOs, DSOs and academic experts. The person to be elected as the representative of a company must be an expert of the European power market, be reliable and be qualified for transactions on exchanges.
The first regular Exchange Council meeting of 2021 was held on 10 March 2021 and chaired by Bernhard Walter, Head of Market Design and Regulatory Affairs at EnBW AG.
The Exchange Council of EPEX SPOT is an official body of the Exchange. 26 members and 4 permanent guests represent adequately the diversity of economic and corporate profiles that exists among the Exchange Members from various sectors: producers, power trading companies, transmission system operators, regional suppliers and financial service providers, as well as commercial consumers and academics. Its missions include in particular the adoption of the Exchange Rules and the Code of Conduct of EPEX SPOT and their amendments. The Exchange Council approves new trading systems as well as new contracts or market areas and approves the appointment of the Head of the Market Surveillance Office. It meets up quarterly.
The European Power Exchange EPEX SPOT SE and its affiliates operate physical short-term electricity markets in 13 countries: in Central Western Europe, Switzerland, the United Kingdom, the Nordics and in Poland. As part of EEX Group, a group of companies serving international commodity markets, EPEX SPOT is committed to the creation of a pan-European power market. Over 300 members trade electricity on EPEX SPOT. 49% of its equity is held by HGRT, a holding of transmission system operators. For more information, please visit www.epexspot.com.