NMa approves intraday electricity trading with Belgium

Starting Thursday, February 17, 2011, the allocation of cross-border intraday capacity between the Netherlands and Belgium takes place via the APX-Endex Power exchange. The Netherlands Competition Authority (NMa) has approved the grid code change necessary for this market integration. These changes relate to the allocation of transmission capacity to electricity trades on the same day. Jaap de Keijzer, member of the Board of the NMa, reacts: 'The integration of intraday markets is good for the development of the electricity market as a whole. Buyers will face fewer risks now that they are able to buy both the electricity and the transport capacity combined.'

This new way of intraday market integration replaces the explicit intraday capacity allocation between the Netherlands and Belgium, where buyers had to separately request cross-border capacity, next to the electricity itself, in order to be able to transport it from one country to the other. In the old situation, it was uncertain in advance whether the requested capacity would eventually be allocated. From now on, capacity allocation is done implicitly: electricity and transport capacity go hand in hand. By introducing this efficient way of trading, the NMa anticipates European guidelines and net codes. Mr. De Keijzer continues: 'According to European rules, all cross-border capacity should be allocated implicitly through the power exchanges by 2014. Because of the fact that we have now already started doing so, we believe that the effects on the electricity market should be thoroughly evaluated.'


This new way of intraday market integration replaces the explicit intraday capacity allocation between the Netherlands and Belgium, where buyers had to separately request cross-border capacity, next to the electricity itself, in order to be able to transport it from one country to the other. In the old situation, it was uncertain in advance whether the requested capacity would eventually be allocated. From now on, capacity allocation is done implicitly: electricity and transport capacity go hand in hand. By introducing this efficient way of trading, the NMa anticipates European guidelines and net codes. Mr. De Keijzer continues: 'According to European rules, all cross-border capacity should be allocated implicitly through the power exchanges by 2014. Because of the fact that we have now already started doing so, we believe that the effects on the electricity market should be thoroughly evaluated.'