Energy exchange to launch month long trial next week

An energy exchange known as Polska Gielda Energia will be launched next week. It will run on a trial basis for a month, with plans for it be fully operational in July. The power station Rybnik is the first company to have registered to trade on the exchange. Trade will be conducted in two markets; one handling instant transactions, while the other would handle forwards and futures. The latter market, however, would not be introduced until next year at the earliest. Companies eligible to trade on the exchange include power stations, distributors and suppliers of electric energy. According to the Treasury Ministry, the exchange would handle transactions representing between 10% to 20% of the volume of trade on the energy market as early as next year. The objective of the exchange is to establish a more transparent trading mechanism to replace the current system where producers sign long-term contracts with suppliers of power to households and industries. (Gazeta Wyborcza, June 3-4, page 24) S.M.