17 May, 2002 – Leipzig-based power exchange EEX said that German local utility ESAG, UK-based Hess Energy and Shell Energy Trading Limited had been admitted as trading members during April. It also said volumes had increased 40 per cent on the integrated spot and futures market during the month.
In a statement EEX said, “The participation of Shell Energy Trading Limited (in EEX)…is a part of its strategy of becoming a major pan-European gas and power trader.” The Shell unit is responsible for all of the Royal Dutch/Shell Group’s gas and power trading activities.
Leipzig-based EEX was formed in March by the merger of former rivals Frankfurt’s European Energy Exchange and Leipzig Power Exchange (LPX) to better compete with brokers, who dominate Europe’s biggest electricity market.
The ripple effect following the collapse of Enron impacted the market as well as reluctance among dealers to use it the new market ahead of the introduction of a new underlying (benchmark) price index against which derivatives deals will be settled.
EEX since has announced that the index, called Phelix, will be launched on July 1, and it has admitted Switzerland’s Deriwatt as a new market maker.
Volumes on the EEX in April were up 40 per cent from March at 4.1 TWh, the statement also said.
Of the total, 2.36 TWh were in spot trades, compared with 2.5 TWh the month before. But the remaining 1.74 TWh of futures volume was six times the result in March of 0.27 TWh.