Nord Pool, Europe’s leading power market, has welcomed yesterday’s (Monday 16 April) EU Commission pronouncement on shared order books for cross-border intraday trading.
In a meeting held to explore stumbling blocks over the implementation of the European Cross-Border Intraday (XBID) solution, the Commission explicitly confirmed that it will not be possible to create a ‘shadow market’ parallel to, but separate from, that established by XBID – endorsing Nord Pool’s longstanding view that sharing of order books will be absolutely key to the creation of meaningful single European power market.
In practice this means that power trading products offered on XBID will not be offered in parallel in local trading systems during cross-border allocation. The Commission has undertaken that this is what will be implemented when XBID goes live in June.
Welcoming this important development, Nord Pool’s Director of Market Coupling Operations, Hans Randen, said: “We are pleased that the European Commission shares Nord Pool’s view on requiring Nominated Electricity Market Operators (NEMOs) to send all orders which are eligible for matching in XBID to the XBID shared order book, without the possibility of creating divisive and confusing local markets.
“Nord Pool is, and has always been, very much committed to following this key principle of contributing to a liquid pan-European intraday market. This is a small, but important, victory for those trading power – it is they who will benefit from the proper implementation of shared order books.”
However, Nord Pool remains extremely concerned that one single continuous market must apply at all times, not only when there is cross-border capacity available. It is our strongly held belief that the modern, progressive view has to be that, under a single common power market, liquidity belongs to the market as a whole – it does not remain the ‘property’ of a single power exchange outside of XBID arrangements.
An unequivocal statement from the Commission on this vital point is required.
About Nord Pool
Nord Pool, Europe’s leading power market, delivers efficient, simple and secure trading across Europe. The company offers day-ahead and intraday trading, clearing and settlement to customers regardless of size or location. Today 380 companies from 20 countries trade on Nord Pool’s markets.
Nord Pool operates markets in the Nordic and Baltic regions, Germany and the UK, and is a Nominated Electricity Market Operator (NEMO) in 15 European countries, while also servicing power markets in Croatia and Bulgaria. In 2017 Nord Pool had a total turnover of 512 TWh traded power. The company has offices in Oslo, Stockholm, Helsinki, Tallinn, London and Berlin.
Nord Pool has 25 years of power market experience built on offering flexibility, transparency, innovation, greater choice and participation to our customers.
Lysaker, 17 April 2018
For further information, please contact:
Stina Johansen +47 6710 9181 - [email protected]