VERBUND at the Leipzig Power Exchange

In the first half of 2000, VERBUND completed 2,650 spot market transactions with 40 trading partners in 12 countries. The total volume of trading amounted to 6,400 GWh, an equivalent of the power requirements of 1.8 million households. Thus the equivalent of last year’s total volume was sold already in the first six months of this year.

APT, the VERBUND trading subsidiary, had already been established in 1998 and become very active in the expanding European power markets at an early time. For example, APT also participates in the Frankfurt EEX, which will start up operations at the beginning of August. Currently, APT is participating in the simulation operations of the EEX.

"Power exchanges play an important role in our strategy. They offer us the opportunity to expand our international trading operations“, Johann Sereinig, Member of the VERBUND Board of Managers and responsible for power trading comments his company’s commitment.

Standardized hour contracts from 1 MW on at the LPX

LPX is a day-ahead-market with hour contracts for the 24 hours of the subsequent day. Prices are determined on the basis of the bids and offers to sell in Euro/MWh for each of the 24 hours of the subsequent day, transmitted to LPX by the participants via the Internet (Elweb) or by fax. On 6/29/2000, for example, 4,468 MWh were traded, the average price (marginal clearing price) being 18.59 Euro per MWh on that day.

According to the auction principle the price for each of the two bidding zones in Germany is calculated once per day. This price is determined independently of any limits in the transmission network. If the network is overloaded, the total market is divided into different price zones on the basis of price mechanisms. The cost of transport is divided according to the causation principle.

The LPX started spot trading on 6/14/2000 as the first German power exchange in Leipzig. The Scandinavian Nord Pool, operator of the most successful international power exchange, is a partner of LPX.