APT Trading on Nord Pool


After moving into the Leipzig LPX, APT Power Trading GmbH, VERBUND's power trading subsidiary, is taking up its trading activity also at the Scandinavian power exchange Nord Pool today, Monday, July 10.

APT is the first Austrian power trader to become active at Europe's biggest power trading centre. Nord Pool is operated by Sweden, Finland, Norway and Denmark.

Founded at the beginning of the 1990s as first international power trading exchange, Nord Pool has become firmly established as the power market was liberalized. Located in Oslo, the trading centre offers its 250 participants both a spot- and a futures market: "Elspot" and "Eltermin". In 1998, a total volume of 145.4 terawatt hours (= 145.4 billion kWh) was traded. A remarkable detail: The volume of power traded on the financial market is already six times higher than the physically traded volume today.

This is also an important reason why APT will trade exclusively financial products, so-called energy-derivatives, on Nord Pool. For the concrete handling of the transactions on the exchange, VERBUND was able to win a big Scandinavian energy supplier as operating partner.

Dr. Johann Sereinig, Chairman of the Board of Management of VERBUND power trading, explains the APT strategy and outlook: "As one of Europe's leading power traders we are now going to prove our know-how in power exchange not only on the Leipzig Power Exchange but also on Nord Pool. The next step will be taken at the beginning of August, when the Frankfurt Power Exchange EEX gets started. VERBUND will participate also with capital."

International operations booming

As a result of its consistent internationalization policy, VERBUND has been very successful not only in selling but especially also in trading, since liberalization was started in 1999. Mr. Sereinig: "We assessed the importance of power trading correctly as early as 1998 and built up this parallel distribution channel when we carried out our sales offensive in Germany and Italy. By founding our power trading subsidiary APT we set up our own task force for power trading. Our high expectations were fulfilled quickly, as VERBUND's power trading volumes have been constantly growing since 1999: In the first year we sold 6,500 GWh in international trade, and, with 2,650 successful transactions with 40 partners from 12 countries, we reached the same volume in the first six months of this year already."

As a result of these volumes, VERBUND is already ranking among Europe's leaders in power trading. Its move into Nord Pool has strengthened this position considerably.