Paperwork delays trading on new Romanian OTC electricity market

03 March 2014 16:07 Source:ICIS

Trading activity on the new Romanian over-the-counter (OTC) platform run by the market operator OPCOM was delayed by paperwork, despite the platform’s launch on Monday, market participants told ICIS.

OPCOM launched the new OTC platform on 3 March as previously announced, a spokeswomen said on Monday. But participants said no trading activity took place as most counterparties were unable to register, because the energy regulator ANRE had not published the required documents yet.

“ANRE has to make public the list of documents needed for registration,” one trading source said.

The OPCOM spokeswoman said the operator will be able to confirm the enrolment of market participants once ANRE publishes the framework for registering with the OTC platform. OPCOM said it has registration requests from three companies so far.

ANRE was unavailable for comment on Monday evening.

The energy regulator ANRE gave the go ahead to the new platform last July ( see EDEM 19 July 2013 ). The new platform came after active lobbying from market participants following the government ban on all trading of wholesale power outside OPCOM in 2012 ( see EDEM 18 September 2012 ).

Some sources expect trading on the new OTC platform to begin in a couple of weeks. Another participant said April was the likely start date given the required paperwork needs legal approval too.

Trading companies will be required to submit to OPCOM a list of counterparties they can trade with. The list must have a minimum of four companies. Some sources previously told ICIS this measure would make life difficult for small companies. Others said that such a list would have been required when dealing with a broker.

President of the Romanian Association of Electricity Suppliers Ion Lungu, previously told ICIS: “The list of four counterparties, even though I do not find it necessary, (...) this was a condition from the very beginning from ANRE in order for the approval of the platform to take place and it was accepted by all the members who took part in establishing the regulations and framework of the platform.” Sophie Udubasceanu

By Sophie Udubasceanu