A new power market claims it is making trading power easier and fairer for the smaller suppliers. Launched at the beginning of this year, the N2EX started with just eight members but now has 21. The volume it trades has also increased tenfold.
Mikael Lundin, Chief Executive of Nord Pool Spot said: “Here in the UK, barriers for trading have been perceived as high. If you want to trade in electricity, you have had to create bilateral agreements. What we offer is a clear solution.
“We are now discussing different ways of making it easier for smaller and medium-sized customers to become a member. We want to have all participants in the UK electricity market trading on the N2EX”
Launched by Nordic Pool Spot and NASDAQ OMX Commodities the market operates both prompt trading- a future trade, and the day ahead auction- which takes place on one day for the delivery of electricity the next day. N2EX claim to provide a more efficient risk solution to energy trading.
Geir Reigstad, Vice President of NASDAQ OMX Commodities, claimed the new market would be good news for consumers: “You will get competition into the supply side, so there will be more suppliers coming into the arena, offering new products. That is essentially good for customers.”
The N2EX’s ambition is to double the number of traders operating on its platform and from next year offer futures trading as well which it claims will increase the choice of risk management services to energy buyers.