Message-ID: <24178237.1075848108569.JavaMail.evans@thyme> Date: Wed, 25 Oct 2000 07:15:00 -0700 (PDT) From: ann.schmidt@enron.com To: mark.palmer@enron.com, karen.denne@enron.com, meredith.philipp@enron.com, steven.kean@enron.com, elizabeth.linnell@enron.com, jeannie.mandelker@enron.com, mary.clark@enron.com, eric.thode@enron.com, laura.schwartz@enron.com, keith.miceli@enron.com, damon.harvey@enron.com Subject: GERMANY: European power trading set to grow further - Enron Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Ann M Schmidt X-To: Mark Palmer, Karen Denne, Meredith Philipp, Steven J Kean, Elizabeth Linnell, Jeannie Mandelker, Mary Clark, Eric Thode, Laura Schwartz, Keith Miceli, Damon Harvey X-cc: X-bcc: X-Folder: \Steven_Kean_June2001_4\Notes Folders\Discussion threads X-Origin: KEAN-S X-FileName: skean.nsf GERMANY: European power trading set to grow further - Enron. 10/25/2000 Reuters English News Service (C) Reuters Limited 2000. FRANKFURT, Oct 25 (Reuters) - The volume of electricity trades will continue to expand in continental Europe, a senior Enron executive said on Wednesday. "Portfolio shifts as well as high oil and dollar prices will continue to boost the number of transactions," Gregor Baeumerich, Enron's head of continental European power trading, told an IIR conference on energy trade. "There are no natural limits to market growth." According to Enron estimates, German, Austrian and Swiss power trades in 2000 will amount to a combined 1,500 terawatt hours (TWh) - versus actual consumption of 975 TWh - of which Enron will account for around 375 TWh. Although the underlying physical demand was not growing, the process of market liberalisation had already caused a dramatic acceleration in trading activities, said Baeumerich. Enron's continental European turnover of 136,7 TWh in the third quarter of 2000 represented a 10-fold increase over the corresponding 1999 quarter. The number of market participants - counting traders, exchanges and new trading floors at established energy companies such as municipal utilities - in that period had risen to 180 from 100 a year ago, according to Enron estimates. In future, the number of new entrants would offset those participants lost due to the simultaneous concentration process, Enron believed. Trade in transmission contracts for a variety of time periods were now established both over the counter and at electricity exchanges in Germany, the biggest market in its own right, Baeumerich said. Next year should also see the emergence of power options. But on Enron's wish list for improved German trading conditions were clear rules on how to handle bottlenecks at border entrance points, he added. Enron also wanted export and import fees to be waived and traders allowed to apply for transmission schedules from grid operators after the currently observed 1430 local time deadline. Instead, Enron favours short-term trading with a one hour lead time - for example in response to sudden weather changes which impact on electricity needs. Baeumerich also reported that usage of Enron's online trading platform for power, gas, and coal, introduced a year ago, already accounted for 60 percent of total worldwide turnover. In Europe, the figure was 50 percent. Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.