Powernext has introduced new PEG Spot contracts on its trading platform PEGAS last week, to accompany the merger of the PEG Nord and TRS hubs, completed on 1st November 2018.
PEG Futures products were already available since 28 September 2018 and successfully traded during the month of October. First PEG Spot instruments became tradable on PEGAS on 30 October 2018.
Benoit Pouzieux , Gas System Managing Director at GRTgaz, declared:
The design of the selected solution was carefully elaborated together with market participants, French TSOs, and CRE (Commission de régulation de l’énergie), in the scope of the “Concertation Gaz” process in which PEGAS took an active part. Agreed by all the stakeholders, the phased implementation ensured a smooth transition and prevented trading errors, mismatches and nomination mistakes.
Egbert Laege , President of Powernext, continued:
A special attention was dedicated to the planning of this transition. Indeed, it was essential to synchronise the efforts with the brokers to make sure the entire wholesale market was aligned. Hence, no split of liquidity has been encountered. PEGAS is glad that this historical transition was successful.
Extensive tests were carried out in close cooperation with market participants to guarantee the tradability of new PEG contracts. 375 GWh were negotiated during the initial Day-Ahead trading session on 31 October 2018. Within-Day transactions amounted to 325 GWh, on 1st November 2018.
Gilles Doyhamboure , Commercial and Regulation Director at Teréga, added:
We are delighted to finally have a single French gas market place, bringing to completion the French gas market construction initiated in 2005. As always, PEGAS contributed significantly in the establishment of the TRF. Not only a screen adaptation has been designed but also a market based mechanism managing the residual limits on the grid was introduced one year ago in anticipation of the merger : the Congestion Management Products.
1st November was a milestone for the French gas landscape : having a single gas price thanks to the suppression of the South / North spread will be determinant for the French market. The creation of the new TRF zone will result in a more competitive, liquid and dynamic French market. It will also reinforce the security of supply in France and allow better network interconnections.” concluded Dominique Jamme , Deputy CEO at CRE.