Lysaker, 19 October 2011
N2EX strongly supports Scottish and Southern Energy’s (SSE) announcement from 12 October 2011 about committing its demand volume to the day-ahead wholesale market. This is a bold step to support an acknowledged model for trading within wholesale electricity markets, and could be the first step to a transformation in the UK market.
The N2EX day-ahead auction, operated by Nord Pool Spot and NASDAQ OMX Commodities, is based on the Nordic day-ahead auction model. N2EX is thereby exporting experience and adding value learned from the Nordic to the UK wholesale market.
“The commitment by SSE is a strong signal that the model used in the Nordic market and implemented throughout most of Europe is adaptable for the UK market as well,” says Hans Randen, Director European Integration at Nord Pool Spot.
“The aim is to create an efficient and transparent market with a credible index price for the UK wholesale electricity market,” he continues.
SSE’s commitment to the day-ahead market is important. N2EX believes their stance will encourage other members to follow. High volumes will bring depth and liquidity to the bid offer stacks, giving smaller participants greater confidence in the market.
“We welcome the recently announced initiative from SSE and the on-going growth in both volume and participation at N2EX, as it is most encouraging to the broader development for the UK market,” says Sara Aadnesen, Director Communications, NASDAQ OMX Commodities.
“The day-ahead auction and its corresponding index lie at the heart of our plans for creating a liquid and transparent UK market for both near term and long term contracts. We believe that the increased depth in this reference price bodes well for future growth in our derivatives contracts for UK power,” she says.
Creating a transparent and liquid index price in the UK market is important to achieve market coupling with mainland Europe. Having solid fundamentals is also a requirement for developing a liquid futures market.
Total volume traded on the N2EX auction since Friday 14 October 2011 is 374.6 GWh, giving an average daily volume of 75 GWh the last five days. As of today there are 32 members trading on the exchange.
For further information, please contact N2EX:
Press contacts:
Stina Johansen, Communications Manager, Nord Pool Spot AS, phone + 47 9165 0603
Sara Aadnesen, Director Communication, NASDAQ OMX Commodities, phone +47 9060 0759
About N2EX
N2EX is the name of the UK power market offering from Nord Pool Spot and NASDAQ OMX Commodities. NASDAQ OMX Clearing is the authorized clearinghouse.
The web site, www.n2ex.com, provides market information and documentation for the UK power market.
About Nord Pool Spot
Nord Pool Spot runs the largest market for electrical energy in the world, offering both day-ahead and intraday markets to its participants. Nearly 340 companies from 18 countries trade on the market. The Nord Pool Spot group has offices in Oslo, Helsinki, Stockholm, Copenhagen, Tallinn and London. Nord Pool Spot is owned by the Nordic transmission system operators. In 2010, the group had a turnover of 307 TWh representing a value of EUR 18 billion.
For more information, visit www.nordpoolspot.com.
About NASDAQ OMX Commodities
NASDAQ OMX Commodities is the brand name for the NASDAQ OMX Group’s worldwide suite of commodity related products and services. The NASDAQ OMX Commodities offerings include power, natural gas and carbon emission markets and clearing services. NASDAQ OMX Commodities is a trademark of the NASDAQ OMX Group, Inc.
NASDAQ OMX Commodities Europe is the trade name of NASDAQ OMX Oslo ASA which is authorized as a commodity derivatives exchange by the Norwegian Ministry of Finance and supervised by the Norwegian Financial Supervisory Authority. All trades with NASDAQ OMX Commodities Europe are subject to clearing with NASDAQ OMX Clearing.
NASDAQ OMX Clearing is the trade name of NASDAQ OMX Stockholm AB which is authorized and supervised as a multi-asset clearinghouse by the Swedish Financial Supervisory Authority in Sweden as well as authorized to conduct clearing operation in Norway by the Norwegian Ministry of Finance.
NASDAQ OMX Commodities has more than 350 members from over 15 countries covering a wide range of energy producers, consumers and financial institutions.
For more information, please visit www.nasdaqomxcommodities.com.
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