Vattenfall Energy Trading has signed a market maker agreement with the Polish Power Exchange. The company shall be the first market maker after so called "exchange obligation" has come into force. The duty of a market maker is to maintain liquidity by placing sale and purchase orders for instruments noted on POLPX markets consistent with rules and regilations specified by the Exchange.
"Although the electricity market in Poland is intensively developing, there is still a long distance to mature markets such as the Nordic or German market. One of major disadvantages is the lack of sufficient liquidity of transactions. We think that the activity of a market maker can be the most effective way in order to change this situation. Building on the experience of Vattenfall Energy Trading gained in this range on other European markets, we are willing to get to first base and improve the situation on the market . We hope that other entities shall soon join us and transactions volume on the exchange and on other transparent trading platforms shall dynamically grow." - said Marek Krzysteczko, Director of Trading Polska from Vattenfall Energy Trading.
"Recent alterations in the energy market in Poland blend into the general trend of creating a European energy community. In accordance with the approved by the European Commission so called "Road map for implementation of market coupling in the European Union", in 2015 electricity markets of all countries are going to be connected exactly through this mechanism. Cooperation with Vattenfall Energy Trading shall contribute to increase of liquidity on POLPX and market transparency, which is particularly crucial in the perspective of launching the connection of the Polish and Swedish electricity markets through market coupling and the fulfillment of aforementioned recommendations of EC"- said Grzegorz Onichimowski, the President of the Polish Power Exchange.
The market maker is meant to maintain liquidity in the market in a fashion so that conceivably a large number of transactions are concluded. As a result of such activity is the increment of liquidity on the exchange, which in turn enables entities participating in the electricity market to execute their sale and purchase orders at market prices.
One should also note that by increasing volume concentration on the market which is transparent and anonymous, POLPX members have an equal influence on the electricity prices level which undoubtedly is an advantage for market participants.
While functioning the market maker is exempted from annual fees imposed by POLPX for membership in the animated market.
Electricity transactions in July of the current year on the Day-Ahead Market (DAM) and Commodity Derivative Market (CDM) amounted to 1 893 473 MWh. Despite the holiday season, July turned out to be the best month in respect to volume since the beginning of POLPX existence on Polish electricity market.
About Vattenfall
We produce, distribute and sale heat and electricity on Polish market. Vattenfall is the biggest producer of heat and the seventh as far as the volume is considered, electricity producer in Poland. We provide power to 1.1 million of households in Upper Silesia.
Vattenfall is the fourth biggest private company and the biggest foreign investor on Polish power market.
Vattenfall at present is conducting its operations in Denmark, Finland, Germany, Poland, Sweden, the United Kingdom.
More about Vattenfall: www.vattenfall.pl
Katarzyna Rozenfeld - Vattenfall Energy Trading sp. z o.o., tel. 22 587-50-30, katarzyna.rozenfeld@vattenfall.pl
Marek Krzysteczko - Vattenfall Energy Trading sp. z o.o., tel. 22 587-50-48, marek.krzysteczko@vattenfall.pl
Thorsten Ziegler - Vattenfall Energy Trading GmbH, tel. +49 49 40 244 30 322 thorsten.ziegler@vattenfall.de
