In conformity with earlier announcements the first electricity purchase auction took place on the Polish Power Exchange today. The purchase auction concerned the purchase of electricity in the amount of 100 MW in BASE type delivery, that means the delivery of the equal electricity amounts at each hour of the day during the period since 1.01.2011 till 31.12.2011 (The Instrument BASE-A_Y-11).
The number of traded contracts volume has amounted to 60 MW (contracted electiricity volume amounted to 525 600 MWh). Average volume-weighted price has amounted to 193.36 PLN/MWh, with minimum value of 193.17 PLN/MWh and maximum value of 193.50 PLN/MWh.
That was the first auction of such type, which from the very beginning enjoyed very high interest of the market participants. Wolume of complex sales orders exceeded supply, and was as high as 2 671 800 MWh.
"The first electricity auction purchase on the Polish Power Exchange is an event long awaited by the market participants especially by the energy consumers. We are happy that such form of transactions has appealed to the exchange participants and that there are prospective participants of next auctions." - Mr. Grzegorz Onichimowski, The Polish Power Exchange Management Board President said.
On the day of 02.09.2010 another purchase auction will be carried out. The auction subject will be peakload of electricity, that means electricity with equal power in each hour of the working day at hours between 7 a.m. and 10 p.m. during the period from 01.01.2011 till 31.12.2011 (the instrument PEAK5-A_Y-11) with power of 100 MW.
What are the electricity auction on POLPX?
The auctions carried out on the POLPX afford possibilities for bay or sale of large volumes of electricity during the longer time periods (a quarter, a year). The application shall be submitted by the Tenderer not later than 30 calendar days before proposed time limit for the auction. In the application the Tenderer specifies, among others: proposed date of the auction, type of the auction (sale or purchase), instrument being subject of the auction, the auction volume as well as the offered price limit, which is known only for the Exchange (the minimum price for sale auctions or the maximum price for purchase auctions). The Exchange publishes the time limit for opening of the auction not later than 25 calendar days before the day the auction is carried out on that, with specification of date of the auction, type of the auction, subject of the auction as well as volume of the auction.
Auctions are inviting forms of the trading in electricity, not only for electricity producers by purchasers as well. The basic advantages of auction are as follows:
- Aggregation of the most favorable offers
- Opportunity for single-time purchase of large amounts of electricity for longer period
- Transactions with physical delivery of electricity
- Increasing of transparency of the electricity market in Poland
- Securing of clearing of the transactions owing to the collateralization system run by the Clearing House
- Transparency of functioning owing to supervision exercised by the Polish Financial Supervision Authority
- Easy way to enter into transactions owing to modern and user friendly brokerage application CONDICO Trade™
Polish Power Exchange (POLPX) was established in 1999. POLPX is an established SPOT electricity (D-AM and Intraday), energy derivative, property rights and emission allowances exchange in Poland. POLPX also runs the Certificate of Origin Register for electricity produced in RES and cogeneration.
Benefits of membership at the POLPX:
- the most competitive transaction fees on the Polish electricity market
- security and guarantee clearing transactions
- modern trading monitor - CONDICO Trade based on the NASDAQ OMX,
- wide range of instruments on the POLPX markets , customized to the needs of participants
- equal rules of participation for all members regardless of their size
