Current stock exchange / Stock exchange

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A current stock exchange is an organized market for river, which functions similarly as a stock exchange. As products temporally defined quantities of river are acted. The advantages of the current trade at the stock exchange are a bundling of supply and demand, whereby high liquidity can be achieved. Standardized products make a regulated trade possible and create simple comparison instruments, whereby the negotiation costs sink. Economicalally an optimal Allokation develops.

Emergence

By the liberalisation of the European electricity markets the topic current trade for the power suppliers gained strongly significance. Before the liberalisation the river was referred mostly with some few suppliers and resold to the customers in the respective supply areas. These long-term supply contracts yield ever more contracts with short term duration. Current and current futures exchanges became thereby an important aspect of the changed competitive position, since it, as other stock exchanges make also, the conclusion from contracts possible to prices corresponding to real market conditions.

The role of the pioneer within this range of the European current industry took over the Scandinavian current stock exchange north pool, which resulted from the early liberalisation of the current market in Scandinavia in the year 1993. In Amsterdam 1999 Amsterdam power Exchange (APX) was created, 2000 the energy stock exchange European Energy Exchange (EEX) in Frankfurt/Main and Leipzig power Exchange (LPX), which fused in the year 2002 to the EEX with seat in Leipzig (Leipziger current stock exchange). Since the liberalisation of the Austrian market in the year 2001 there is a current stock exchange, the Energy Exchange Austria (EXAA) also in Austria.

Commercial procedure

In order to consider the technical conditions of the river and the current market, different commercial procedures are used. With current stock exchanges most frequent auction procedures is the bilateral auction (double Auction), on both sides of the market act and at the same time purchase, as also are possible for sales order.

The temporal availability is with current stock exchanges an important criterion, since e.g. current distributors react immediately to Wetterprognosen, in order to be able to satisfy the different demand. In the sequential trade can be reacted permanently to new information, while this is not possible with the trade at fixed times. The disadvantage of the sequential trade is that thereby the thus the fluctuations of the electricity tariff, can rise. The trade at fixed times bundles the liquidity (the quantity of the offered and/or inquired commodity) and reduces thus the The is regarded mostly as negative, since the price does not reflect always the market value. However thereby Hedging and speculation strategies become possible.

Products at the current stock exchange

The demand in the current market is particularly characterized by temporally differentiated consumer behavior (load profile). In order to become fair this circumstance, the offered products at a current stock exchange differ particularly by their temporal length of the supply.

At the option market long-term business with a running time is transacted by up to several years. Thus the participants can ensure a safe basic supply during a longer period. Since river cannot be stored however economically, at the Spotmarkt products are acted with shorter running time. Cousin load blocks are to cover thereby the basic load of a daily. A 24h-Block means the supply of electricity with constant achievement in the time of 0:00 clock to 24:00 clock. The commercial unit are 24 MWh, corresponds to a constant output of 1 MW. In order to consider the stronger demand on the day in relation to the night, between 8:00 clock and 20:00 clock of peak load blocks (peak load) offered with a commercial unit of 12 MWh, which corresponds again 1 to MW of constant achievement. In order to make still finer gradations possible in the daily load line, additionally still single hour contracts can be acted. When off peak one designates the blocks before and after a peak load block, temporally regarded thus from 0:00 clock to 8:00 clock and from 20:00 clock to 24:00 clock rule energy is the reserve held ready from power stations to compensating between current demand and - offer, which is taken up depending upon the current variations in load by a net company. The primary regulation adjusts automatically and immediately fluctuations within the second range by regulation of the Turbinenleistung, with the secondary regulation is the desired value of the frequency within 15 minutes again to be achieved, this is done via use of additional power station capacities. The Tertiary period regulation is today activated manually, if the secondary regulation is not sufficient any longer. Beside the long-term date and the short term Spotmarkt is the rule energy market the real time market.

Prognosis

An important Forschungsgebiet in connection with current stock exchanges are prognosis procedures. These are to generate important information, like the price history, in order to make meaningful power station running times and price safety device possible. Load courses are prognosticated, in order to specify optimal purchase quantities. In order to make price safety device possible, proceeds must cover at least the neighbouring costs for each for type of power station. Hydro-electric power plants exhibit usually low, kalorische power stations (thermal power stations) middle and pump-fed power stations high neighbouring costs. On a long-term basis the fulls costs must be naturally covered at the market.

Criticism

Practices of the US-American energy enterprise Enron come by an enterprise scandal into the headlines reveal however also shade sides of the trade of river over the stock exchange. By manipulative speculation and input of wrong purchase and sales data succeeded in Enron producing artificially current bottlenecks. By the apparently increased demand and the smaller offer it came to precipitous price increases, which the enterprise could use and which entailed power failures in California also. Apart from these manipulations on the date and Spotmarkt Enron could raise the prices also by balance manipulation and the occurrence as energy brokers at longer term.

Possible such manipulations are particularly with unsupervised and intransparenten Terminkontrakten. In case of of Enron the energy derivatives were not controlled at that time by national place. From this reason an adjustment can become necessary, even if thereby the free play of the forces at the market, otherwise wished, is limited. In Europe a such case is considered improbable due to deviating structures rather. Similar price manipulations were already assumed however in Germany.