GDF SUEZ, through its wholly owned subsidiary Electrabel, has signed a market maker agreement with the Polish Power Exchange.

As a market maker, GDF SUEZ will be responsible for maintaining the market liquidity by placing sale and purchase orders for instruments noted on POLPX Commodity Derivatives Market (CDM).

"This step is part of GDF SUEZ´s strategy to increase presence and focus in the Central East -and South East European power markets where we want to support the development of both OTC and exchange markets. Bringing liquidity to these markets allows GDF SUEZ to maximize the value creation of our assets.  Adding market making at POLPX to our trading activities enables us to fully use the trading and hedging opportunities in the Polish power market". - said Frank O. Brannvoll, Head of European Illiquid Power Markets (EIPM),  Oil, FX & Commercial trading.

"Polish Power Exchange fully supports the development of the common European electricity market" - said Grzegorz Onichimowski, CEO of the Polish Power Exchange. Having GDF SUEZ and Vatenfall Energy Trading as two first  market makers proofs that we're heading that way and we only hope that thanks to our participants efforts POLPX will be included soon to a more  liquid European market place."

The market maker's activities are aimed to maintain market liquidity by placing constant orders on both sides of the market. As a result of such activities the market liquidity on the Exchange increases. Another advantage is the opportunity to execute purchase and sale orders at market prices as well as managing the risk of portfolio contracts for delivery of electricity based on the best practices. The concentration of the domestic market on a single liquid exchange market will - undoubtedly - bring the Polish market closer to well developed markets of Western Europe and will also have great impact on further standardization and integration of a common European electricity market.

In return for its activity in increasing  the volume of concluded  transactions the market maker transactions are cleared according to reduced transaction fees and the market maker is exempted from annual fees imposed by POLPX for membership in the animated market.

August turned out to be the best month in respect to volume since the beginning of POLPX existence on Polish electricity market. The electricity trading volume on the Day-Ahead Market amounted to 562,312 MWh which was more than the total volume of July by 26.72 %. On the Commodity Derivatives Market the total trading volume amounted to 2,292,655 MWh. In relation to the previous period trading volume for that market has increased by 58.14%.

>>press release (pdf)