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Six months after the launch of the publication of the European Gas Index (EGIX) the European Energy Exchange (EEX) evaluates the feedback received as being positive. By now, more than 30 companies, including information service providers, trading participants from the gas industry and public utilities, are procuring current and historical EGIX data.
“The establishment of the EEX exchange prices as a reference for natural gas is a continuous process”, explains Oliver Maibaum, EEX Managing Director Exchange. “Thehigh demand from the market shows that, with the EGIX, we are offering a transparent price index which is in line with the market and which can be used in existing and new contracts as an alternative to indices linked to the oil price.“
The EGIX is based on all exchange trading transactions which are concluded on the Derivatives Market in the respective current front month contracts for the GASPOOL and NCG market areas. As a result, the monthly adjustment of the delivery volumes, which is frequently used in existing contracts, can be effected directly depending on the development of the market price on EEX, which is usually below the oil-linked gas import price. For example, the average difference between the BAFA (German Federal Office of Economics and Export Control) cross-border price for natural gas and the EGIX was EUR 2.00 per MWh from January until May 2011.
The daily reference price, which was introduced in the context of 24/7 gas trading at the end of May also gains recognition. According to a recent decision of the Federal Network Agency the daily reference price established on the Spot Market of EEX isused by the market area operators GASPOOL and NCG for the settlement of controle nergy fees.
The European Energy Exchange (EEX) develops, operates and connects secure, liquid and transparent markets. EEX holds 50 percent of the shares in EPEX Spot SE, which operates the Spot Market for Power for Germany, France, Austria and Switzerland. The German and French Derivatives Market for Power is concentrated within EEX Power Derivatives GmbH, a majority-owned subsidiary of EEX with registered offices in Leipzig. Furthermore, EEX offers spot and derivatives trading in natural gas and CO2 emission allowances as well as trading in financial coal futures. EEX Group also includes European Commodity Clearing AG (ECC), the central clearing house for energy and related products in Europe.
