The launch of UKPX marks the first step in the creation of its comprehensive integrated exchange and clearing house for trading electricity spot and futures under the New Electricity Trading Arrangements, NETA.
The UK Power Exchange has today listed a family of futures contracts for electricity designed to allow industry participants to enter into long-term contracts for electricity, while also enabling fine tuning of contracted positions in the short-term with a series of smaller, near-term contracts. The contract structure is designed to fit the requirements of NETA, and has been developed in close consultation with the industry.
The UK Power Exchange will offer a complete range of trading services for the NETA environment with the launch of its spot market later this year. The UKPX spot market is planned for 21st November when the current mandatory Pool is dissolved.
Today's market launch follows two weeks of dress rehearsals that provided an opportunity for electricity industry companies to familiarise themselves with the exchange and clearing house operations ahead of the launch. Fourteen major power companies participated in the dress rehearsals. Peter Cox, Chief Executive of the OM London Exchange, which has created the UK Power Exchange, said:
"We are encouraged by the support we have received from the electricity industry and the number of members we have to date. Having met our first objective of launching the futures market with support from the industry, we have created a foundation upon which we can build liquidity and attract further members as we progress towards the launch of the electricity spot market."
Membership The following companies have been admitted to Membership of the UK Power Exchange. A number of other companies are in the process of completing their membership applications, and should join the exchange in the near future. ABB Financial Energy, National Power (Npower), British Energy, Norweb, Centrica (Accord), PowerGen, Credit Lyonnais Rouse, Refco, ED & F Man, TXU, EDF Trading, Vattenfall, GNI, Enron Europe Trading
