Germans Take Over French Power Trading
Consolidation of energy trading markets continues with Germany’s EEX announcing that they will take over the operation of France’s Powernext. Platts has the full details.
Europe Consults on Market Abuse
The ERGEG (European Regulators´ Group for Electricity and Gas) and CESR (Committee of European Securities Regulators) have launched a joint consultation on trading regulations in energy and gas markets. The core element of their concern is expressed in their press release as follows:
The existing EU securities legislation (i.e. the Market Abuse Directive – MAD) may not properly address potential market integrity issues in the electricity and gas markets. MAD applies almost exclusively to financial instruments admitted to trading on a regulated market. Physical products (e.g. spot market products) are not covered, and derivatives markets products are covered only if they are admitted to trading on a regulated market.
A consultation document has been issued asking market participants to comment on the effectiveness of the current regulations and, in particular, so say whether they think that a greater obligation for transparency would improve the situation. Details of responses received and public hearings to be held will hopefully be posted on the pages made available for them at the ERGEG web site.
Two Steps Forward, One Step Back
Maybe we should not have reported on the progress towards setting up a new power exchange in the UK, because Energy Business Review now says that the process has suffered yet another setback. Anthony Belchambers, the CEO of the Futures & Options Association, is reported as saying:
We were getting close to coming to a decision two or three months ago but there was a fairly fundamental change in circumstances outside our control. This meant that those on the shortlist were invited to submit supplementary proposals. This is going to add a further period of time and we are probably looking at something towards September-October before we are in a position to make a decision.
Fundamental change in circumstances? Anyone?
Still, October is not that far off.
A New Power Exchange for the UK?
Long, long ago and far, far away, the UK decided to get rid of the famous Pool and set up a trading-based market instead. Questions were asked as to whether an official exchange would be established as part of the new market design, but Professor Littlechild, then head of OFFER, decided to let the market decide. There were, after all, many firms eager and willing to set up exchanges. Where are they all now?
(more…)