OM says it has reached a technology co-operation and facilities management agreement with Nordic Electricity Clearing House ASA (NECH), a subsidiary of Nord Pool, the Scandinavian electricity exchange.
Nord Pool offers trading in standardized physical and financial energy contracts in addition to its clearing services. The company has established customer service operations in all Nordic countries and is also a co-owner of the German energy exchange, European Energy Exchange (EEX). Nord Pool has also acted as a systems provider and adviser to the French electricity exchange Powernext. As the Nordic region’s electricity exchange Nord Pool plays a key role in the Nordic electricity market by offering transparent and accepted market prices for both the spot and derivatives markets.
Under the terms of the seven-year agreement with OM, the Stockholm-based OM will become the new systems provider for Nord Pool’s clearing operations, with effect from January 1 2004. “This clearing agreement with OM enables us to consolidate our position as an energy exchange in the Nordic region, at the same time as we enhance our position for further joint ventures in Europe”, explains NECH Chairman of the Board, Torger Lien. “This agreement with OM is also extending the scope of our long-term co-operation with one of the world’s leading providers of transaction technology.”
The clearing agreement between NECH and OM follows extensive tendering which has involved a number of providers. OM was chosen following a comprehensive evaluation. Until OM takes over in January, Nord Pool will continue to work with Power Clearing Systems AS (PCS).
“We are proud to be involved in further developing the world’s first international exchange for energy trading,” says Magnus Bcker, Chief Operating Officer at OM. “Nord Pool has been a success since its inception in 1993 and is an excellent example of successful pan-Nordic co-operation.”