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Marex Spectron Group (“Marex Spectron”), the global commodities and financial markets brokerage, is pleased to announce it has launched a cleared clean UK spark spread service.
Soon after launching the service this morning a Winter ’12 clean spark spread was traded − at £1/MWh − while bids and offers have been posted on months, quarters and seasons (out as far as Winter 2014).
The components of the Winter ’12 trade were − 15 MW of power at £51.44/MWh, 25,000 therms of gas at 69.38 p/th and 25,000 tonnes of EUAs at EUR 7.23/TCO2. The names of the counterparties involved in the trade are to be kept confidential.
“We are delighted to see such strong early interest in this new cleared clean spark product and hope that it will attract new traders – financial players and hedge funds – into the market,” said Chris Barton, head of the UK Power desk at Marex Spectron. “Spark spreads have always been a core part of our business – we’ve worked hard to develop liquidity and this new launch reinforces our position as the main spark spread facilitator.”
Spark spreads represent the generating margin of gas-fired power stations. Standard spark spreads are calculated from the difference between power prices and gas prices (adjusted for fuel efficiency). “Clean” (or “carbon-neutral”) spark spreads take account of the carbon costs faced by generators as well as the gas costs.
