European Energy Exchange EEX® Now Also Realizing A Spot Market For Electricity - Concept to be presented in early 2000

The European Energy Exchange EEX® will present a model for the establishment of a spot market for electricity early next year. The exchange made the announcement in Frankfurt on Wednesday. EEX® will be working closely together with Deutsche Verbundgeselischaft (DVG), the association of Gerrnan grid operators. A corresponding working committee with representatives of the grid operators and the energy supply companies, local utilities and industrial-sector companies and traders who have been working on the exchange project so far has already been set up, it was reported in Frankfurt. In other words, EEX® will also be involved in the spot market, in addition to the futures market that is to be launched in the course of the year 2000. The basis for establishing a spat market is the new draft agreement (the so-called "Verbdnde- vereinbarung") between four main associations representing the interests of energy suppliers, operators, utilities and consumers in Gerrnany. According to EEX®, the agreement creates the main prerequisites for electricity trading with a short-term performance horizon. It provides for two trade zones instead of the eight zones that have existed up to now, which reduces the rnarket complexity. A major step has thus been taken in the direction of liberalizing the German electricity market.