Slajd 1

LIBERALIZED GAS MARKET
IN THE UNITED KINGDOM
Workshop for
the Polish Financial Supervision
Authority (KNF)
Wojciech Szwankowski
Warsaw, 13 June 2012
NATURAL GAS CONSUMPTION IN EUROPE
EXCLUDING SHALE GAS RESERVES
530
bcm
510
490
470
450
2000
2002
2004
Source: Citi Bank, IEA
2006
2008
Year
2010
2012
2014
2016
GAS CONSUMPTION IN EUROPE
120
100
bcm
80
60
40
20
0
Belgia
Francja
Niemcy
Source: Citi Bank, IEA, Eurostat
Holandia
Wielka
Bryt.
Polska
NATURAL GAS SUPPLY MIX IN EUROPE
180%
160%
140%
Zużycie gazu / Popyt
Wydobycie krajowe / Popyt
Magazyny / Popyt
LNG / Popyt
120%
100%
80%
60%
40%
20%
0%
Belgia
Francja
Source: Citi Bank, IEA, Eurostat
Niemcy
Holandia
Wielka Bryt.
Polska
FOUNDATIONS FOR EFFICIENT GAS TRADE
Clear and transparent rules
– Virtual Trading Point
– Balancing market
– Standardized instruments
Liquidity and transparency
– Market Place Operators
– Number of participants: producers/importers, suppliers, end-users,
financial institutions/traders
– Market-based rules of access to domestic storage and transmission
capacity
– Availability of information
NATURAL GAS MARKET IN THE UNITED
KINGDOM
 largest and most mature
gas market in Europe
 approximately 80% of gas trade in Europe
Market participants:
•
•
•
•
•
Producers/Importers
Final customers: large industrial
customers (chemicals, gas-fired power
plants, etc.)
Industrial companies (“Shippers”) and
wholesalers
Suppliers/sales companies serving small
and medium enterprises and households
Financial institutions –
banks,
hedging funds, structured
investment products
Market Place Operators
• APX-ENDEX
• Brokers – GFI, Tullett Prebon,
Marex Spectron, ICAP
• ICE Exchange
UNITED KINGDOM – MARKET PLACE OPERATORS
ACCORDING TO FSA – EQUIVALENT OF KNF IN THE UK
APX-ENDEX (SPOT market)
–
–
–
UK NBP Prompt – Day-Ahead (DA), Weekend (WEND), Balance-of-Week (BOW), Working Days Next Week
(WDNW), Balance-of-month (BOM),
On-the-day Commodity Market (OCM) – also known as the balancing market with two types of transactions:
WITHIN DAY, DAY AHEAD
APX Gas Storage - secondary market for storage capacity
Brokers – GFI, Tullett Prebon, Marex Spectron, ICAP
(market for physically delivered forward contracts traded in unregulated OTC market, classified as
“Forward” by FSA )
– UK NBP Curve - Forward contracts traded in OTC: Month, Quarter, Season, Calendar Year,
Gas Year.
– They also quote UN NBP Prompt markets, balancing transactions and storage capacity.
ICE Exchange
(market for physically delivered forward contracts traded in the regulated, i.e. exchange market, classified
as “Forward” by FSA )
–
exchange market for Futures and Futures Options contracts not registered at the National Balancing Point (Virtual Trading Point).
CONCLUSIONS
• Experience from the UK market shows that it is necessary and
appropriate to run the SPOT market on a separate trading platform;
• Market for Futures contracts with physical delivery of electricity and
gas should be run by an institution holding an exchange licence and
specialized in energy commodities trading;
• price of a Futures contract per unit of energy (electricity or gas) is
equal to the contract price on the Spot market on maturity date (on
maturity date Futures contract becomes a SPOT transaction with
physical delivery).