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In its ordinary meeting in Milan on 23 March 2007, the exchange council of the European Energy Exchange (EEX) confirmed EEX’s pacemaker role for a competitive European energy trading market. In order to further strengthen the market participant’s confidence in the Leipzig-based market EEX intends to continuously expand and improve its range of information offers regarding power trading and the rules of trading further. For this reason, the exchange council has approved the improvements of the auction procedure in spot trading proposed by the management board of the exchange. The management board of the exchange can now also call for a second auction below the upper price limit in case the price for one hour displays considerable deviations from that for the other hours of the delivery day. Moreover, the exchange will also be able to quote negative prices in the future in the case of which the buyer receives money for taking off electricity. In addition, the bid curves for the single hour auctions will already be published on the morning of the exchange trading day following the auction. Up to now, the bid curves have only been published on the afternoon.
The exchange council also had the head of the Market Surveillance Department give a detailed report on the misuse of the Spot Market data and the current status of the investigation by the department of public prosecution. The council condemned the misappropriation of the data with all severity; however, it also acknowledged that amongst other aspects Spot Market data had already been checked by the EU commission in the framework of the sector inquiry and that the market had been given good marks in this context.
Furthermore, the expertise “Pricing and market power on the electricity markets in Germany“ commissioned by VIK (German Association of the Energy and Power Supply Industry) was presented at the meeting. The exchange council intensively discussed possible connections between the structure of the market and evolving market prices. In this context, the exchange council clearly and uniformly advocated EEX as a functioning trading platform which is important for price transparency on the German and European power market.
Finally, the exchange council approved the launch of gas trading on the exchange in the market areas of BEB and E.ON Gastransport and adopted the required amendments of the rules and regulations of the exchange. Tradable products from two days to up six years ahead will be offered. Liquidity is to be ensured by means of so-called market makers.
The exchange council of EEX is a body of the exchange defined in the German stock exchange act. It consists of in total 22 members that adequately represents the different interest groups and business communities: In addition to trading participants with 18 members elected from various election groups (domestic as well as foreign transmission system operators – power trading companies, municipal utilities and regional suppliers, brokers and financial service providers as well as commercial consumers), four representatives of associations (VIK German Association of the Energy and Power Supply Industry, Federation of German Consumer Organisations – vzbv, German Electricity Association - VDEW and the Federation of German Industries – BDI) are members of this body.
