Friday, March 23, 2007

Romania: 40% of produced electricity to trade on BSE in '08

23 March 2007

Approximately 40 percent of the electricity produced in Romania is to be traded since 2008 on the Stock Exchange, 50 pc is to remain on the regulated market and just 10 pc will be found in bilateral contracts negotiated directly, ACT Media news agency reports.

Under these conditions, Romania's electricity market will be one of the most advanced in Europe from the point of view of liberalization and transparency.

OPCOM electricity stock exchange operator in Romania has launched recently the Centralized Market of Forward Contracts with Physical Delivery (PCCF), where forward contracts trading is to be carried out online, through open bidding, from the terminals of participants in the market, in order to secure operations' transparency.

Minister of Economy and Trade Varujan Vosganian stated recently that OPCOM has already become an integrated operator on the wholesale market of electricity, but transactions with electricity can also be made through Bucharest Commodities Exchange, namely on the retail market.In 2006, on the Market of Bilateral Contracts (PCCB) some 2 percent of the overall electricity quantity produced in Romania was traded.

On the Following Day Market (PZU) 6-7 percent of produced electricity was traded and on the balancing market - some 2 percent. Just 11 percent of the electricity produced locally was traded on the free market. The difference of 89 percent was divided among direct contracts, bilaterally negotiated between producers and providers (some 39 percent) and the contracts on the regulated market (50 percent).

Through and Order of the Minister of Economy and Trade, producers were constrained to sell the available quantities exclusively on OPCOM platform.

Following this decision, the proportion increased in Q1 2007 to 7.5 percent, and on PZU and the balancing market the percentage remained relatively the same. Some 17 percent of the electricity produced in Romania has entered now on the exchange platform.

Source: ACT Media News Agency

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