Nord Pool links power bourse

Nordic power bourse Nord Pool has signed an agreement with a German regional authority to help establish an electricity exchange in the city of Leipzig. It is seen as part of the company`s drive to become a major player in Europe as deregulation progresses.

Nord Pool is seeking to own a 10 to 20 per cent stake in the exchange, which would operate a spot, forward and futures contracts market. The company is also in negotiations with the Amsterdam Power Ex-change and other bourses to strike similar deals. The start-up cost of the Leipzig exchange will be DM20-25m ($11.3-14.2m). A final feasibility study will be complete in August, the exchange could be operational by 2000.