LPX Leipzig Power Exchange The first German Power Exchange

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LPX Leipzig Power ExchangeThe first German
Power Exchange
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LPX has a clear strategy

• Role and intention
• Role Trading place in the liberalised energy
  market
• Intention constituent component of a European
  net of energy exchanges
• Goal To be your professional partner in the
  energy business

Spot
Spot Futures
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Auction Bidding as the best solution

• Auction Bidding
• Bundling up of supply and demand
• Minimization of strategic influences and market
  power
• Definite and generally valid time for balancing
  the portfolio
• Economical and simple

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Basic principles of price determination

• Foreign spot market participants
• Foreign participants will have to make sure
  themselves that power is at their disposal in a
  German TSO-area
• Result
• You take part in LPX just as your German
  colleagues(contract with Balance Responsible
  a.s.o.)

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LPX and the German power market
TSO-areas

• LPX works with 8 TSO-areas
• BayernWerk
• Bewag
• EnBW Transportnetze
• HEW
• PreussenElektra Netz
• RWE Energie
• VEW ENERGIE
• VEAG

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Block bid periods on the LPX Spot Market

• Limits for block bids from start
• Maximum size for an individual block bid is 50
  MW
• A maximum of 3 block bids per block period and
  participant can be sent in addition the
  hourly bid
• These limits can change later on and if so LPX
  will inform its participants no later than on
  Thursday the week before implementation of new
  limits.

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Organisation of the exchange

• Public law structure
• Exchange as an institution under public law
• LPX acts through organs under public law
• Supporter
• LPX Leipzig Power Exchange GmbH
• Private law institutions
• Shareholders

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LPX Organisation
Exchange Council

• LPX Board
• City of Leipzig
• Sachsen LB
• Freestate of Saxony
• Nord Pool ASA

Management of the Exchange
Trade Supervisory
LPX Management
Examination Regulations
Sanction committee
Spot Trading
Settlement
Marketing Key Accounts
Exchange Courtof Arbitration
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LPX Fees

• Overview
• Trading fees(mutual, i.e. to be paid by both the
  purchaser and the seller)0.04 Euro/MWh
• Annual fee12500 Euro
• Entrance fee (one-off)7000 Euro

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The Market Participants

• 33 companies trade at LPX Power Exchange

• Aare Tessin AG
• Bewag Aktiengesellschaft
• DISAM A/S
• EDF Trading Limited
• Electrabel
• Elektrizitäts-Gesellschaft-Laufenburg AG
• EnBW Gesellschaft für Stromhandel
• enercity trade
• Energieunion AG
• EWMR
• Entega Trade GmbH
• E.O.N. Energie AG
• Fortum Energie GmbH
• GEW Köln AG
• HEW AG
• Kom-Strom AG

• Kraftübertragungswerke Rheinfelden AG
• MVV Energie AG
• Norsk Hydro Energy Deutschland GmbH
• NWS Energiehandel GmbH
• Österreichische Elektrizitätswirtschafts AG
• RWE Energie AG
• Southern Energy Europe bv
• Stadtwerke Düsseldorf AG
• Stadtwerke Leipzig,
• Statkraft Energy Deutschland GmbH
• Südwestdeutsche Stromhandelsgesellschaft mbH
• Syneco GmhH Co.KG
• Tiroler Wasserkraftwerke AG
• TXU Europe Energy Trading BV
• VASA Energy GmbH Co. KG
• VEAG Vereinigte Energiewerke AG
• VEW Energie AG

(09/28/00)