Q&A: NORD POOL SPOT
ML: Market surveillance is important for our work with transparency of information. In 2010 Nord Pool Spot has issued two sanctions for breaches of the market conduct rules. Both sanctions were written warnings and they were issued because of insider trading, one of the sanctions also included breach of our rules about disclosure of information. In addition to the sanctions there have been
39 statements of breach, typically a result of the participant either issuing unclear information or breaking the 60 minute deadline for providing information to the market.
GI: Mikael, earlier this year you announced a new website for more effective, comprehensive and timely information from Nord Pool Spot. How is this transparency initiative developing? ML: The new website is part of our strategy for transparency and is well on its way toward launch. We know that a lot of people use this site every day, and we hope all the users will perceive the new site as an efficient and user friendly source of information about the market.
We would very much like to see transparency guidelines as part of the regulation ...
GI: Business expansion in European energy seems to be based on a strategy of exchange collaboration. How have existing and new alliances progressed in the last 12 months? ML: Nord Pool Spot is working successfully in collaboration with a number of exchanges, transmission system operators and other parties in order to achieve price coupling of markets from Portugal to Finland, called the Price Coupling of Regions (PCR). This initiative was welcomed at the Florence
Forum earlier this year. In addition we are working with parties in Central West Europe: Germany, France, Belgium and the Netherlands, with the ITVC. Phase one is already launched, with the second phase to come soon.
GI: Market coupling is taking shape in fostering the coordinated integration of the European power markets. What has been your role in this and what can we expect next? ML: Nord Pool Spot was the first exchange for electrical energy to become an international exchange. The company has a proud track record in integrating markets. We have established a common market for the Nordic area and Estonia, and we will continue to be a driving force in the future integration of markets.
48 December 2010
GI: Cross-border intraday markets are to be based on Nord Pool Spot’s Elbas technology. How does this technology link to clearing, settlement and nomination systems for other users? ML: All settlement and nominations are for time being done by Nord Pool Spot. When we integrate with the others, the respective exchange will be responsible for the settlement and nomination in their local area.
GI: How successful have European energy leaders been in fostering a more integrated and efficient European energy marketplace and what needs to be achieved in the short-term to stimulate the process? ML: I think the process has been slower than at least I expected 12 years ago. However, it is now picking up pace. Mergers among transmission system operators and among energy exchanges are making the integration easier, I believe.
GI: Is, in your opinion, European regulation of energy trading moving in the right direction and what specific details would you like to see embraced in proposed legislation? ML: The European regulators are working together in the European Regulators’ Group for Electricity and Gas (ERGEG) with regulating the energy trading, and we think this is very positive and contributes to market integration. We would very much like to see transparency guidelines as part of the regulation, as transparency is essential to the trust in the market. Transparency is a cornerstone in bringing liquidity to the markets. Nord Pool Spot this month was selected winner
of the prestigious Energy Transparency Award in Brussels. The award is managed by the Florence School of Regulation and distinguishes a company or institution for their particular contribution to the transparency of energy markets in Europe.
GI: How do you view prospects for Nord Pool Spot in 2011? ML: I view our prospects as very good, and I look forward to seeing more members and volumes in the UK. Going forward, integration of markets will be important, and we expect to grow our business in Europe. We also have the goal of creating common intraday markets, and we will see the new markets in the Baltics. Nord Pool Spot and I are committed to continue
to support the process of creating the most efficient energy market in the world. •
For more information on Nord Pool Spot go to:
www.nordpoolspot.com
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