EEX To Launch Electricity Indices - First Index Family Of A German Energy Exchange

The first electricity indices in Germany based on exchange-traded prices will be launched on December 11. The European Energy Exchange (EEX) made the announcement on Monday. The indices measure the development in the electricity price at EEX and will be calculated for base-load and peak-load blocks on a daily and monthly basis.

"Indices make the electricity market more transparent, easier to measure and thus easier to compare," said the two EEX Executive Board members Christian Geyer and Hans E. Schweickardt. The indices describe the development in prices on the spot market and are the basis for trading decisions by participants. Moreover, the indices are also a neutral basis for the derivatives market.

The new electricity indices comprise four indices based on the block products: a daily index and a monthly index for both base-load blocks and peak-load blocks. The indices are based on the volume weighted average prices of the EEX spot market. The exchange currently has 29 participants from six countries trading more than 100,000 megawatt hours (MWh) per week.

As an information provider, Deutsche Börse calculates the indices and disseminates the data via its price distribution system, TPF (Ticker Plant Frankfurt).