OPCOM: role, mission, performanceOPCOM: role, mission, performance

earning every Day Aheadyour trust

%

6.85

15.45 + 9.58CENTRALIZED BILATERAL + DAY AHEAD

2008

2005

September 22 – 26, 2008Brussels, Belgium

DAY AHEAD

Executive Exchange on Coordinated Cross Border Transmission of Electricity – an Examination of the European Union

2000

Romania started spot market without privatization.

But the full unbundling of TSO and the National Company’s split was perceived as a clear attempt towards competitive structure building.

1991-1998 Integrated Utility RENEL (generation, transmission, distribution)

1998 Regulatory Authority

1998-2000 National Integrated Company + Nuclearelectrica

2000-2007

The Beginning, September 2000

Market opening

Participants’ number

Bad issues

Only the Generation voiceForecast, as inelastic demand, suppliers not involved No penalty for imbalances No incentive for supporting the balancePrice cap, distorting the price

Good issues

Competition acceptedContinuously increased opening degreeMarket matured as structure and participants’ behaviorNeed of change acknowledged

5 Years Operation, September 2000 – June 2005

Political decision, all the period

European Commission grants

- The Commercial Code of the Electricity Market (ANRE – KEMA)

- The IT trading platform (OPCOM – AREVA T&D, OMX)

World Bank involvementRoad Map in the electricity field (2003):

- guarantee condition for the WB loan award- a main pillar for the chapter 14 (“Energy”) closure

Electricity Market ProjectConsultancy Kema – Nord Pool Consulting

Ministry

World Bank

Nord Pool Consulting

KEMA Consulting

KEMA Consulting AREVA T&D

The New Trading Platform. Preparatory Works. 2003 - 2005

OPCOM

Ministry, ANRE, Transelectrica, OPCOM

• The market is moving from a centrally scheduled system to a self scheduled system

• The market participants have the possibility to negotiate bilateral contracts for exchange of electricity

• A voluntary power exchange is established where the market participants can purchase and sell electricity on hourly contracts for delivery next day by introducing bids expressing their willingness

• There is established a Balancing Market where the TSO can get resources for balancing the electricity system

Outside the PX

The New Trading Platform. Principles.

• The removal of the pool mechanism

• Replacement with two-side closed auction

• Role of the forecast disappears from market clearing price calculation

• The removal of the price cap

• Internal congestions: no impact on market clearing price

DAM. A new mechanism enabling real price discovery.

CLOSED AUCTIONS

Electricity Pricing

numbers & figures sell

buy

• Liquid spot market (evolving from 469 MWh/h on average in 2006 towards 598 MWh/h on average in the first eight months of 2008, meaning 9.49% of net consumption)

• Increasing number of participants: 81 • Not concentrated market: HHI value, lower than 1000• Consistent price, its value depending on market conditions

38 months new DAM operation. Time of statistics. 2005 - 2008

DAM Trades 01.07.2005-31.08.2008:

Registered participants : 81

2005 2006 2007 2008 Average Price [lei/MWh]: 125.50 157.63 158.95 176.17Average Price[EURO/MWh]: 34.94 44.78 47.89 48.43

2005 2006 2007 2008(6 months) (8 month)

Volume (TWh) 1.72 4.11 5.04 3.50Market Shares (%) 6.72 7.74 9.33 9.49

Maximum Market Share(%): August 2007 12.76

4648

5254

58 656971

7274

7576

787980

8486

92959595959595

99989797

989998

989799

102101

7981

40 50 60 70 80 90 100 110

July 2005

September 2005

November 2005

January 2006

March 2006

May 2006

July 2006

September 2006

November 2006

January 2007

March 2007

May 2007

July 2007

September 2007

November 2007

January 2008

March 2008

May 2008

July 2008

participants’ interest

Change of

settlement

rules

0

40

80

120

160

200

Dec-07 Feb-08 Apr-08 Jun-08 Aug-08

[Euro/MWh] comparing prices

• Liquid spot market (evolving from 469 MWh/h on average in 2006 towards 598 MWh/h on average in the first eight months of 2008, meaning 9.49% of net consumption)

• Increasing number of participants: 81 • Not concentrated market: HHI value, lower than 1000• Consistent price, its value depending on market conditions

38 months new DAM operation. Time of statistics. 2005 - 2008

0%

25%

50%

75%

100%

December2007

February2008

April2008

June2008

August2008

Nord Pool - Oslo

GME- Roma

EEX - Leipzig

APX - Amsterdam

Powernext - Paris

Belpex - Brussels

OPCOM - Bucharest

EXAA - Vienna

TGE - Warszawa

OTE - Prague

Borzen - Ljubljana

comparing shares

SellOffern+1

PUBLIC AUCTION

Sell Offer

i

Bilateral contracts centralized markets. Transparency of prices.

Continuous trading

Forward physical delivery. Standardization.

Electricity Pricing

4545

4852 55

56575959

62 6775 79

8081 87

888991

909091

90909190

9089

888888

9290

40 50 60 70 80 90

December 2005

February 2006

April 2006

June 2006

August 2006

October 2006

December 2006

February 2007

April 2007

June 2007

August 2007

October 2007

December 2007

February 2008

April 2008

June 2008

August 2008

participants’ interest

33 months CMBC operation. Time of statistics. 2005 - 2008

CMBC Trades 01.12.2005-31.08.2008:

Registered participants : 90

2006 2007 2008

Weighted Average Price [lei/MWh]: 126.77 167.37 177.44 Weighted Average Price [EURO/MWh]: 36.00 48.35 49.99

Deliveries 2006 2007 2008

Volume (TWh) 1.25 6.51 8.49Market Shares (%) 2.41 12.13 15.45

Maximum Market Share(%): deliveries for March 2008: 18.24

460,320

22,320 45,300156,840

831,840

1,765,920

1,502,640

697,440

0 62,520

527,040

219,600

2,496,270

2,950,850

117,360

1,432,540

285,500

73,440 51,25793,600

116,800128,425

306,600335,800

92,80087,600

1,044,360

224,45047,06530,8702,1600

547,384

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

December2005

February2006

April2006

June2006

August2006

Octomber2006

December2006

February2007

April2007

June 2007

August 2007

October2007

December2007

February2008

April2008

Iunie2008

August2008

Cont

ract

ed Q

uant

ity [M

Wh]

0

5

10

15

20

25

30

35

40

Num

ber o

f Bila

tera

l Con

tract

s

Contracted Quantity Number of Bilateral Contracts

16 3237

404040 46

46 5153

545558 61

6167

686969

73 7675

77777980

818282

8382828283

10 20 30 40 50 60 70 80 90

November 2005

February 2006

May 2006

August 2006

November 2006

February 2007

May 2007

August 2007

November 2007

February 2008

May 2008

August 2008

participants’ interest

A price for GREEN. 2005 – 2008.

CMGC Trades 01.11.2005-31.08.2008:

Registered participants : 83

2006 2007 2008

Number of Green Certificates: 20,939 41,364 50,032

Average Price [lei/certificate]: 155.00 142.72 151.63 Average Price [EURO/certificate]: 42.00 42.00 42.00

102 79 113 78 90 78 101

18,541

1,453581 308 219 182

3,258

1,008

2,807 2,325 2,717

4,304

21,548

2,107

5,106

9,021 9,021

11,636

7,2547,994

289 56

5,997

89934 104 166

0

4,000

8,000

12,000

16,000

20,000

24,000

Nov ember 2005

February2006

May2006

August2006

Nov ember2006

February2007

May2007

August2007

Nov ember2007

February2008

May2008

August2008

Num

ber o

f Gre

en C

ertif

icat

es

32

34

36

38

40

42

44

46

[Eur

o/ce

rtific

ate]

Traded Volume (Number of Green Certificates) Market Clearing Price

2007

2008

• Early spot market’s start in 2000

• 8 years gathering experience and supporting the Romanian market liberalization

• New Trading Platform’s start middle 2005

• One of the most liquid power exchange, among first eight markets in EU in the Data Monitor ranking

A summary of the current status

Thank You for attention !

ww

w.o

pco

m.r

o

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