Electricity market

Day-Ahead and Intra-Day Market (PolPX)

The Day-Ahead and Intra-Day Market in electricity operated by PolPX is a spot market of short-term electricity purchase and sell transactions.

The Day-Ahead Market (DAM) opened in June 2000 and is a physical spot market in electricity. DAM on PolPX comprises 24 hourly markets which list hourly instruments. In addition, DAM lists 3 block contracts (BASE – contract with delivery of 1 MWh of power in each hour of the 24h day; PEAK – contract with delivery of 1 MWh of power in each peak hour from 07:00 to 22:00; OFFPEAK – contract with delivery of 1 MWh of power in each hour from 00:00 to 07:00 and from 22:00 to 24:00). PolPX also allows DAM participants to report and clear OTC transactions based on standard instruments listed in DAM sessions. Trading on DAM takes place two days before and one day before the day of delivery of electricity.

In addition to DAM, there is also the Intra-Day Market which allows Exchange Members to correct contractual positions one day before and on the day of delivery of electricity. Trading on the Intra-Day Market takes place one day before and on the day of delivery of electricity.

The Day-Ahead and Intra-Day Market had 47 trading participants in 2012 compared to 45 in 2011. Trading on the market amounted to 19.1 TWh in 2012.

In 2012, the poee WSE Energy Market also organized spot trading on the Daily-Hourly Electricity Market (WSE ELM). The volume of trading on the market increased by 15% to 2.2 TWh in 2012. The total volume of spot trading in electricity on the WSE Group markets (PolPX Day-Ahead and Intra-Day Market and WSE ELM) amounted to 21.3 TWh in 2012, a decrease of 1.4% compared to 2011.

Volume of spot trading in electricity (TWh)
  For the year ended December 31,
  2012 2011 2010 2009 2008
PolPX Day-Ahead and Intra-Day Market 19.1 19.7 7.6 3.1 2.1
WSE ELM(1) 2.2 1.9 5.8 4.4 3.7
Total 21.3 21.6 13.4 7.5 5.9
Source: PolPX, WSE (1) Until the acquisition of poee by WSE in December 2010, ELM was part of Elbis (member of the PGE Group).

Commodity Forward Instruments Market (PolPX)

The Commodity Forward Instruments Market (CFIM) in electricity opened in November 2008 on PolPX and allows to trade in standard forward products for delivery of the same amount of electricity in each hour of contract delivery. Contracts delivery is weekly, monthly, quarterly or yearly. CFIM lists BASE contracts with delivery in 24 hours of the day, BASE5 contracts with delivery in 24 hours of the day on business days, PEAK7 contracts with delivery from 07:00 to 22:00, PEAK5 contracts with delivery from 07:00 to 22:00 on business days, and OFFPEAK contracts with delivery from 00:00 to 07:00 and from 22:00 to 24:00 on business days and from 00:00 to 24:00 on holidays.

CFIM had 41 trading participants in 2012, the same number as in 2011. Trading in electricity on CFIM amounted to 112.9 TWh in 2012, an increase of 5.6% compared to 2011.

The Electricity Forward Market (WSE EFM) organized on the poee WSE Energy Market, the trading volume was 5.2 TWh in 2012 (an increase of 141.5%). The total volume of forward trading in electricity on the WSE Group markets increased by 8.3% to 118.1 TWh in 2012; it was the highest volume in the history of organized trading in electricity in Poland.

Volume of forward trading in electricity (TWh)
  For the year ended December 31,
  2012 2011 2010 2009 2008
PolPX CFIM 112.9 106.9 74.1 0.7 -
WSE EFM(1) 5.2 2.2 0.4 1.0 4.3
Total 118.1 109.1 74.5 1.6 4.3
Source: PolPX, WSE (1)Until the acquisition of poee by WSE in December 2010, ELM was part of Elbis (member of the PGE Group).
Property Rights Market

The Property Rights Market (PRM) in certificates of origin for electricity produced from renewable energy sources (PMOZE and PMOZE_A) opened on PolPX in December 2005. It is the heart of the system of support for production from renewable energy sources in Poland.

Property rights attached to certificates of origin for electricity produced in high efficiency cogeneration (PMGM, PMEC and PMMET) and, since August 2011, property rights attached to certificates of origin of biogas (PMBG) are also in trading on PRM.

The Property Rights Market allows producers of electricity from renewable energy sources (RES), cogeneration and biogas to sell property rights at an attractive price and allows energy companies required to pay the “substitution fee” or to cancel certificates of origin represented by such rights to meet their obligations. Exchange Members can trade in sessions and outside sessions (trade is cleared or not cleared by PolPX).

PRM had 42 trading participants in 2012 compared to 41 in 2011. Turnover on PRM amounted to 62.2 billion property rights in 2012, an increase of 23% compared to 2011.

Volume of trading in property rights attached to certificates of origin on PolPX (TWh)
  For the year ended December 31,
  2012 2011 2010 2009 2008
instrument          
PMOZE + PMOZE_A 19.9 15.1 13.2 9.6 6.8
PMGM 6.2 5.7 4.3 5.3 1.7
PMEC 35.8 29.9 31.6 30.0 21.4
PMMET 0.4 0.1 - - -
Total 62.2 50.8 48.8 44.8 29.9
Source: PolPX

Gas exchange

Day-Ahead Market for natural gas

PolPX opened the spot market in natural gas and initiated trading on the Day-Ahead Market in gas (DAMg) on December 31, 2012. DAMg lists contracts with delivery of the same amount of gas in each hour in 24 hours of the next day. In the current legal system, exchange trading on the gas market is only possible through brokerage houses and commodity brokerage houses which are PolPX members.

Commodity Forward Instruments Market in natural gas

PolPX operates trading in forward contracts with physical delivery of natural gas on the Commodity Forward Instruments Market since December 20, 2012. Trading takes place in standard forward products for delivery of a fixed amount of natural gas within the delivery hours monthly, quarterly or yearly. Contracts with delivery of gas in 24 hours of the day are in trading.

The total volume of trading on the market was 744 MWh in 2012.

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