Transcript Day Ahead Electricity Markets Data

ITALY’S POWER EXCHANGE
IN A EUROPEAN CONTEXT
Salvatore Zecchini
President
IPEX - GESTORE DEL MERCATO
ELETTRICO (GME)
1
Indicators of liberalization degree by
 TSO independent from electricity producers
 Independent authority with wide-ranging powers
 Market share of leading producer < 50%
Advanced1 liberalization
Average2 liberalization
Limited3 liberalization
1 Advanced liberalization: all criteria are satisfied.
2 Average liberalization 2 criteria over 3 are satisfied.
3 Limited liberalization only 1 criterion is satisfied (or none).
Source: Enel
2
Powers Attributed to Regulatory Authorities
 Indipendence from executive power
 Setting of network entry tariffs
 Setting of selling tariffs
 Control over storage gas access
 Promotion of competition
 Power to impose fines on market
operators
 Definition of public utility service
obligations and quality standards
Source: Enel
3
Day Ahead Electricity Markets Data
Liquidity (in %)
Trading Volumes (TWh)
MARKET
COUNTRY
YEAR
JAN-SEPT
2005
2006
203,0
146,9
IPEX
Italy
MARKET
COUNTRY
IPEX
Italy
EEX
Germany
85,7
64,6
EEX
Germany
Powernext
France
19,7
21,2
Powernext
France
Nord Pool
Scandinavia
175,0
175,0
YEAR
JAN-SEPT
2005
2006
62,8
59,8
17,0
4,1(e)
na
6,0(e)
Nord Pool Scandinavia
45,0
(e) = estimated using RTE (National system
60,0
operator consumption data)
Turnover (bln. euros)
MARKET
COUNTRY
YEAR
JAN-SEPT
2005
2006
12,9
11,9
3,5(e)
IPEX
Italy
EEX
Germany
4,2
Powernext
France
0,9
Nord Pool
Scandinavia
5,4
1,2
11,2(e)
(e) = estimated
4
Spot Market Trading Volumes (TWh)
250,0
200,0
150,0
100,0
50,0
0,0
IPEX
EEX
Powernext
2005
Nord Pool
Jan-Sept 2006
5
Spot Market Liquidity (in %)
70,0
60,0
50,0
40,0
30,0
20,0
10,0
0,0
IPEX
EEX
Powernext
Nord Pool
2005
6
Spot Market Turnover (bln. euro)
14,0
12,0
10,0
8,0
6,0
4,0
2,0
0,0
IPEX
EEX
Powernext
2005
Nord Pool
Jan-Sept 2006
7
Standard Member Fees Schedule Day Ahead Market
Market
Country
Admission
Annual
Technical Fee
Trading
Fee (€) Fee (€/year) (€/year Web Access) Fee (€/MWh)
IPEX
Italy
7.500
10.000
0
0,04
EEX
Germany
0
12.500
7.800
0,05
Powernext France
25.000
30.000
0
0,08
10.000
25.000
0
0,11
Nord Pool Scandinavia
0
12.500
0
0,03
0
0
0
0,13
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Profitability Indicators (year 2005)
MARKET
GME
EEX
Powernext
Nord Pool Group
OMEL
Ebitda/
Revenues
59,1%
32,3%
na
25,2%
18,3%
ROI
ROE
16,4%
na
na
7,7%
18,6%
49,4%
11,7%
9,2%
8,4%
10,4%
Payroll Exp.
/Revenues
21,5%
15,5% (A)
47,2% (A)
23,8%
50,9%
(A) = estimated on year 2004 data
Source: elaborations based on financial statements data
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Profitability Indicators (Year 2005)
60,0%
50,0%
40,0%
30,0%
20,0%
10,0%
0,0%
GME
EEX
Ebitda/Rev
Powernext
ROI
ROE
Nord Pool Group
OMEL
Payroll Exp/Rev.
Source: elaborations based on financial statements data
Notice: for Powernext and EEX ROI not available and Payroll Exp/Rev. estimated on 2004 data;
Ebitda/Rev. not available for Powernext
10
Incumbent Position in National European Markets
Market Share (%) of the leading producer over
domestic consumption, net of exports (year 2005)
EU-25 Electricity generation market (year 2005)
32
Others
32
19%
45%
7%
34
7%
72
6%
2%
4%
5%
5%
89
Source: Enel
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Electricity Average Monthly Prices
Average Monthly Price Baseload Profile (€/MWh)
MARKET
COUNTRY
IPEX
Italy
EEX
Germany
Powernext
France
Nord Pool* Scandinavia
APX
The Netherlands
OMEL
Spain
* System Price
YEAR JAN-SEPT JAN-SEPT
2005 (A)
2005 (B)
2006 ( C )
58,58
57,00
75,09
45,98
41,33
52,91
46,66
41,34
52,00
29,30
28,30
49,90
52,36
44,60
59,98
54,73
52,91
54,56
∆ (in %)
(C/B)
31,7
28,0
25,8
76,3
34,5
3,1
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Average Monthly Price (Baseload euro/MWh)
80,00
70,00
60,00
50,00
40,00
30,00
20,00
10,00
0,00
IPEX
EEX
Powernext
2005
Jan-Sept 2005
Nord Pool
APX
OMEL
Jan-Sept 2006
13
Oil and Electricity Monthly Average Price
90,00
80,00
70,00
60,00
50,00
40,00
IPEX baseload (euro/MWh)
Brent (euro/bbl)
Sep-06
Jul-06
May-06
Mar-06
Jan-06
Nov-05
Sep-05
Jul-05
May-05
Mar-05
Jan-05
30,00
WTI (euro/bbl)
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Electricity Exchange Flows: Exports (TWh)
COUNTRY
Italy
Germany
France
The Netherlands
Spain
YEAR
2005 (A)
1,1
61,9
66,2
5,4
11,1
JAN-JUN
2005 (B)
0,4
32,7
32,1
3,2
4,9
JAN-JUN
2006 ( C )
0,8
34,4
30,9
4,2
6,0
∆ (in %)
(C/B)
100,0
5,2
-3,7
31,3
22,4
Source: UCTE (Union for the Co-ordination of Transmission of Electricity)
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Electricity Exchange Flows (Exports Twh)
70,0
60,0
50,0
40,0
30,0
20,0
10,0
0,0
Italy
Germany
2005
France
Jan-Jun 2005
The Netherlands
Spain
Jan-Jun 2006
16
Average Monthly Price St. Dev. (euro/MWh)
18,00
16,00
14,00
12,00
10,00
8,00
6,00
4,00
2,00
0,00
IPEX
EEX
2005
Powernext
Jan-Sept 2005
Nord Pool
APX
OMEL
Jan-Sept 2006
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Average Monthly Price Var. Coeff.
35,0%
30,0%
25,0%
20,0%
15,0%
10,0%
5,0%
0,0%
IPEX
EEX
Powernext
2005
Jan-Sept 2005
Nord Pool
APX
OMEL
Jan-Sept 2006
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Market
Country
EEX
IPEX
Nord Pool
OMEL
Powernext
Germany
Italy
Scandinavia
Spain
France
Netherlands Spot
Market
APX
ENDEX
SPOT AND DERIVATIVES PRODUCTS TRADED ON THE MAIN EUROPEAN ELECTRICITY MARKETS
SPOT
DERIVATIVES
ELECTRICITY
CO2 EMISSION
Emission
Green
White
Electricity
Trading
Futures
Forwards
Options
CfDs
Futures
Forwards
Certificates * Certificates
(CO2)
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
Netherlands and
Belgium
Derivatives
Market
X
X
* There is an OTC European System called RECS (Renewable Energy Certificates System).
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