The European Energy Exchange hopes to develop into the biggest open market energy exchange in central Europe, but nationalistic policies, such as those displaced by France, are standing in its way, an exchange council has concluded.
During its fourth meeting in 2006, the exchange council of the European Energy Exchange (EEX) intensively considered the possible consequences of the current political interventions in the free competition on the electricity market.
The project to return to cheap tariff electricity prices pursued by the French government for its own large consumers – which has now been found to be inconsistent with EU law by the Constitutional Council, the highest French court of law – as well as the planned amendment of German antitrust legislation were analyzed as examples.
According to the exchange council, the specification of regulatory framework conditions and the examination of compliance with these form tasks for the political sector. However, the establishment of price ceilings, or even the specification of individual prices, does not.
Cost-based prices, which are frequently demanded at the moment, differ fundamentally from market-based prices established on the basis of supply and demand on the free market. The fact that, in 2006, more than 50% of the trading volume on the Derivatives Market of EEX were generated by foreign trading participants for the first time clearly illustrates that single-handed national political efforts are not only questionable with regard to EU legislation but can also cause international market disturbances.