The centralized market with continuous double negotiation PC-OTC on March 3 became operational, according to an announcement by the energy exchange OPCOM.
Photo credit: (c) Razvan Chirita / AGERPRES ARHIVA
On this market, the trading (the purchase and sale) of electricity will be made under some framework contracts agreed on and signed by the participants, with the elements of the transaction to be decided in real time within each daily trading session. The transaction's elements are: delivery profile, delivery period (a day, a week, a month, a quarter, a half year and a year) and the price.
Transactions will be anonymous, with the participants to know their counterparty only at the time of concluding the transaction. At the same time, all the transaction's elements will be known by all the other participants and thus the principles of transparency and non-discrimination will be observed.
In the past, suppliers traded — successfully — significant volumes on Trayport similar platforms, given that the OTC or off-exchange trades could be concluded directly between two parties. Such platforms, used throughout Europe, facilitate the conclusion of transactions between eligible participants who have previously agreed on contractual terms. Freedom is thus provided to all participants through the criteria already pre-approved, with them to voice their option of purchasing/selling electricity at the desired profile and period (eg the purchase of 5 MW, 2015) and the accepted price.
In the case of the OTC platform, additional requirements of transparency to the European trading milieus were introduced, such as the minimum number of four partners from the eligibility list (which can be a hurdle for the newcomers to the market). Moreover, the transparency requirement triggered the OPCOM checking of contracts concluded, although that is not a common practice of the similar European trading milieus.
'We hope that these deviations from the classic European model will not affect the actual trading. We estimate that, within six months, the new market developed by the OPCOM will contribute to the increased liquidity of the transactions with standard long-term products, offering the participants the purchase or sale of electricity per product, adapted to their needs and when necessary,' said Cristina Micu, a member on the Managing Committee of the Association of Electricity Suppliers in Romania (AFEER).
The AFEER representatives hope that an electricity price signal on some profiles and periods will be given also in Romania. At the request of the civil society, the aggregate prices of all transactions will be published, in order to ensure total transparency, reads the release. AGERPRES