ccee - epex spot partnership

EPEX SPOT: The European Power Market

facilitator and beyond…

CCEE – EPEX SPOT Partnership

Sao Paulo, 24 April 2013

Sandrine Wachon – Head of International Business Development

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“The price in Germany and France actually is the reference

price for the rest of Europe. It is of an utmost importance

that this reference price comes from a transparent market

with sufficient volumes traded and with a sufficient number

of actors. I believe, strongly believe, that with proper

supervision of the exchange the price will and should be

trusted by all market participants and all political decision

makers, myself included.”

(Speech by the former European Commissioner for Energy, Andris Piebalgs,

on the joint press conference announcing the creation of EPEX SPOT on 30 May 2008)

The European Power Exchange: EPEX SPOT…

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Agenda

1. The role of power exchanges in the European market

2. EPEX SPOT, a model to create trust and liquidity

3. And then…

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Power exchanges: one of the pillars of the

power market

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A Power Exchange: what for?

Power Exchanges bundle supply and demand of companies and professionals of the power business

(producers, utilities, banks, industrial consumers) and allow to create a neutral market price in a

transparent, instant and fair manner.

EPEX SPOT is a short-term (“spot”) Exchange, the delay between trading and delivery ranges from 24 hours

(Day-Ahead market) to 45 minutes (Intraday market).

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A model to create liquidity and price references

TRADING

CLEARING

DELIVERY PAYMENT

BROADCAST

Anonymous

Multilateral

Easy access

Standard Products

Reliability

Security

LIQUIDITY

Price

References

Exchanges functions in the market: What? What for?

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• These mechanisms are complementary One finds them on the same

market segments.

Organisation of the electricity exchanges

Over The Counter (OTC) Organised Market

Products • Tailor-made • Standardised

Negotiation • Phone

• Electronic platform

• Relations

• Electronic platform

• Anonymity

• Market rules

Transparency • No • Yes

Security • Transactions not

secured

• Transactions totally

secured

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Power Exchanges in the timeline of the market

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• manages a market

• centralized and transparent ensuring liquidity and non-

discriminatory access

• supervised by a structuring regulation relying on market rules and a

strong presence of regulation authorities (AMF, CRE, SMWA,

BNETzA, ElCom, E-Control)

• and guarantees the security of transactions

• guarantees financial commitments & systematic risks

zero credit risk

• guarantee physical commitments

zero industrial risk

Advantages of the organized market

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Agenda

1. The role of power exchanges in the European market

2. EPEX SPOT, a model to create trust and liquidity

3. And then…

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11© EPEX SPOT SE - Any use of information contained in this document is expressly prohibited without prior written consent of EPEX SPOT SE

EPEX SPOT: our objectives

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Corporate facts

60 employees

with 14 nationalities

A European success so far…

Branch in Leipzig

Based in Paris Created in 2008

339 TWh traded in 2012 205 members

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13© EPEX SPOT SE – Any use of information contained in this document is expressly prohibited without prior written consent of EPEX SPOT SE

Shareholder structure: federate interests

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Overall governance and supervision

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The Exchange Council

• Official body of the Exchange

• 16 members from various sectors

• Adopts the Rules & Regulations and

trading systems of the Exchange

• Approves products and activities

• Takes position to European power

market development

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EPEX SPOT Market Surveillance: A single

point of contact for supervisory authorities

EPEX SPOT Market Surveillance reports regularly or upon request to all

supervisory authorities

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Markets, volumes 2012 and delivery zones

Delivery zones:

8 % increase of volume in 2012

261 TWh+ 9 %

Intraday: 15,8 TWh (± 0 %)

17 TWh+ 38 %

339 TWh in 2012

on all EPEX markets

61 TWh

42

00

28

00

13 00

Share of national

consumption:

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± 0 %

Intraday: 2,2 TWh (+ 28 %)

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Who are buyers and sellers on EPEX SPOT?

In total, EPEX SPOT holds 205 Exchange Members

(Day-Ahead & Intraday) as of 3 April 2013.

© EPEX SPOT SE – Any use of information contained in this document is expressly prohibited without prior written consent of EPEX SPOT SE

Day-Ahead

Intraday

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Members of EPEX SPOT

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Who are sellers and buyers on EPEX SPOT?

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Exchange structure

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Contractual Relationships

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Agenda

1. The role of power exchanges in the European market

2. EPEX SPOT, a model to create trust and liquidity

3. And then…

© EPEX SPOT SE - Any use of information contained in this document is expressly prohibited without prior written consent of EPEX SPOT SE

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Our partnership: a sustainable commitment

Design a

Brazilian

organized

market

• Step-wise development of an organized market

• Start with a week-ahead market

• Introduce new products closer to real-time if the regulatory

environment allows it

• Customer-oriented high level standard in terms of performances

(system, responsiveness, product design etc.)

• Lean structure .

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Clearing • Proven and efficient clearing solutions to be proposed by ECC

Building a Smart Brazilian Electricity Market

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The market results are available on EPEX SPOT’s

Website

www.epexspot.com

For any further information:

s.wachon@epexspot.com

Thank you for your attention!

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2001: Establishment of Powernext SA

7/2002: Merger of Energy Exchanges Frankfurt-Leipzig

12/2006: Switzerland becomes a new market

Day-Ahead volumes on all 3 hubs since 2000

9/2008: Creation of EPEX SPOT SE

1/2009: Transfer of Powernext Power Spot into EPEX SPOT SE

9/2009: Transfer of EEX Power Spot into EPEX SPOT SE

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