6 November 2002 – The head of energy trading at UK power company Innogy said yesterday that it had increased substantially the volume of gas and electricity traded since the high profile departure of a number of US traders this year.
Brian Senior, managing director of trading and asset management at Innogy which is owned by Germany’s RWE, told a news conference that volumes in Britain’s gas and electricity trading have been steady over the last year as a few large players mopped up the market share.
“Liquidity generally has held through the last 12 months. We have found our own volumes have picked up significantly compared with last year,” said Senior. “One or two other large players have also been picking up sizeable volumes,” he added.
He said Innogy trades around 450 TWh of power a year, out of a total UK trading market of 2400 TWh.
Other players active in the power trading market include AEP and Entergy-Koch. Senior added that Morgan Stanley had recently also been trading more power in the UK.
In the last few months, US power traders have retreated from the European energy market in the wake of a credit crisis sparked by the collapse last year of Enron. Firms that have vanished from the European scene include Aquila Energy and Williams with TXU cutting back drastically as its diminished credit rating means companies can no longer trade with it.