Monday Jan 26, 2015 Search
Weather | Athens
15o C
9o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Europe links 15 power markets; Greece to join at end-2014

By Julia Mengewein

Power markets across 15 European nations from the UK to Finland will be linked from Tuesday in their biggest transformation since liberalization in the 1990s.

Network operators and energy exchanges will for the first time hold a single auction at noon Paris time to determine next-day power prices across countries that account for 75 percent of Europe’s electricity supply. The move is intended to smooth price differences between nations through better control of cross-border flows, the Agency for the Cooperation of Energy Regulators, or ACER, said January 30.

The process, known as market coupling, is the biggest step in a push to integrate electricity markets by the end of this year across the 28-nation European Union, which forced utilities to open up their business to competitors in the 1990s. Linking supply and demand through trading may save consumers as much as 4 billion euros ($5.4 billion) a year by enabling electricity to flow efficiently to markets where it is most needed, according to the European Commission, the bloc’s regulator.

“Market coupling is a good thing because it promotes liquid and robust day-ahead markets and makes sure cross-border capacities are used in the best way,” Andrew Claxton, director of business development and cross-border market integration at exchange operator APX Holding BV in Amsterdam, said January 31 by e-mail. “It is the cornerstone for the single European market.”

Day-ahead power market coupling links Austria, Belgium, Denmark, Estonia, France, Finland, Germany, Latvia, Lithuania, Luxembourg, Norway, the Netherlands, Poland, Sweden and the UK excluding Northern Ireland, according to data on the website of Nord Pool Spot AS, an Oslo-based exchange.

Cross-border flows

Europe began connecting day-ahead national power markets in November 2006, when France, Belgium and the Netherlands integrated allocation of transmission capacity on electricity cables and power trading. Germany, the region’s biggest market, and Luxembourg were added in November 2010.

Before coupling, traders selling power into another country had to buy cable capacity in advance, then make a separate trade on another exchange, exposing themselves to two sets of price risk. The program allows traders to bid for energy on their local exchange, which then automatically allocates cross-border capacity based on price differences with neighbors.

The project is part of the EU’s third package of legislation intended to remove national barriers to power and gas trading and reduce energy costs. Consumer electricity prices rose 26 percent in the five years through 2012, to the highest since at least 2007, according to Eurostat data.

“Coupling favors price convergence, which fosters competition and therefore better services and ultimately better prices for consumers,” Alberto Pototschnig, director of ACER, said by e-mail from Ljubljana, Slovenia, on January 30.

The Spanish and Portuguese electricity markets will be next to join the market coupling, according to ACER. This should happen in May, Claxton said. Italy, Slovenia and Greece are expected to join at the end of this year, Pototschnig said.[Bloomberg]

ekathimerini.com , Tuesday February 4, 2014 (12:47)  
IMF´s Lagarde rules out special treatment for Greece
Greek bank bonds slump after SYRIZA victory raises funding risk
Greek bonds slip on Syriza victory as ECB buying mutes contagion
ECB cannot agree to debt relief for Greece, board member says
Tsipras win draws French congratulations, German threat
France’s Francois Hollande congratulated Greek Prime Minister-elect Alexis Tsipras on his election victory while urging a new government to stay the reform course, as a top German official t...
What now for Greece after anti-bailout SYRIZA wins vote?
After five years of relentless belt- tightening, Greeks have said enough. It’s now up to the country’s euro-area peers to decide how to respond to the electoral landslide of the anti-austeri...
Inside News
SOCCER
Olympiakos overcomes depleted OFI at Iraklio
Easy though it may seem, Olympiakos’s 3-0 win at depleted OFI Crete was rather difficult on Saturday, but was enough to keep the Reds on top on Saturday, as they have maintained their two-po...
BASKETBALL
Tremendous Spanoulis sweeps Laboral Kutxa
A hot second half was enough for Olympiakos to undo visiting Laboral Kutxa and score its fourth win in as many games at the second round of the Euroleague on Friday. The 76-64 final score wa...
Inside Sports
COMMENTARY
SYRIZA´s win will test institutions
Greece was at an impasse, with a government that did not believe in what it was doing and an opposition that declared with passionate intensity that whatever the government did was wrong and...
COMMENTARY
The challenge for Tsipras and others
A few years ago, an associate of mine who had met with Alexis Tsipras when the young politician was running for Athens mayor told me how impressed he had been by his confidence. Tsipras was ...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Tsipras win draws French congratulations, German threat
2. What now for Greece after anti-bailout SYRIZA wins vote?
3. IMF´s Lagarde rules out special treatment for Greece
4. Greek bank bonds slump after SYRIZA victory raises funding risk
5. Tsipras forges anti-austerity coalition in challenge to EU
6. Greek bonds slip on Syriza victory as ECB buying mutes contagion
more news
Today
This Week
1. SYRIZA heads for historic victory but without majority
2. Greek Elections 2015: The day after | LIVE
3. SYRIZA's win will test institutions
4. Finnish PM says ready to discuss bailout extension for Greece
5. ECB cannot agree to debt relief for Greece, board member says
6. Tsipras moves to form anti-austerity government after crushing victory
Today
This Week
1. Greek Elections 2015 | LIVE
2. Grexit the only way out of ‘valley of tears,’ says Hans-Werner Sinn
3. Greek Elections 2015 | LIVE
4. No debt writedown or rolling back of reforms for Greece, says Finland's Stubb
5. Greeks fork out nearly 5 pct of their incomes on telecom services
6. QE exclusion a ‘de facto Grexit’
Advertiser Link
SMART WATER Project: Outputs and conclusions of the final conference
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.