The news source reported that EEX, the German exchange operator, is one of the companies bidding in the tender organized by the UK-based Futures and Options Association (FOA). EEX is reportedly keen to launch the UK power exchange by the end of 2008, provided its selection takes place immediately.
Companies bidding for the right to operate the British power exchange are awaiting a decision by the FOA over which model to use, two years since the initial go-ahead was received for the exchange. The FOA is reportedly not expecting any significant developments, as changing relationships between European power market operators further hampers the launch of the power exchange in 2008.
Anthony Belchambers, the FOA’s CEO, said: We were getting close to coming to a decision two or three months ago but there was a fairly fundamental change in circumstances outside our control. This meant that those on the shortlist were invited to submit supplementary proposals. This is going to add a further period of time and we are probably looking at something towards September-October before we are in a position to make a decision.
Hans-Bernd Menzel, EEX’ CEO was quoted by Reuters, as saying that the tender process had dragged on for too long, increasing the gap between the UK and the leading European power markets in terms of transparency and liquidity.
