Nord Pool Spot was awarded the Energy Transparency Award 2010 on 17th November 2010 from the Florence School of Regulation at the European University Institute.
Eight criteria were laid down in the ETA Rules: effectiveness, efficiency, reproducibility, innovation, simplicity of design and implementation, responsiveness to users’ needs, leverage and contribution to market oversight improvement.
The judges comprised; Professor Jorge Vasconcelos, Member of the Administrative Board of ACER (Agency for the Cooperation of Energy Regulators), Peter Kaderjak, Director of the Regional Centre for Energy Policy Research at the Corvinus University of Budapest, Jean-Michel Glachant, Director of the Florence School of Regulation and Holder of the Loyola de Palacio Chair in EU Energy Policy at the European University Institute in Florence. They said:
Transparency is an essential condition for the efficient functioning of energy markets. Not only transparent market rules, but also transparent access criteria to infrastructure, transparent operation of energy systems and transparent regulatory procedures are indispensable to ensure a level playing field and efficient market outcomes. Given the increasing importance of energy markets within Europe and the general move towards larger, regional markets and exchanges, promoting transparency in physical and financial energy markets is an ideal way of stimulating the European economy and achieving an open and competitive European market.
The three nominations with the highest average marks were the National Grid; Nord Pool Spot; The Gas Regional Initiative North-West. The Committee considered that all 3 entities provided outstanding contributions to the transparency of energy markets in Europe.
The winner, Nord Pool Spot, runs the largest market for electrical energy in the world, offering both day-ahead and intraday markets to its participants. 317 companies from 20 countries trade on the exchange. The Nord Pool Spot group has offices in Oslo, Helsinki, Stockholm, Fredericia, Tallinn and London. In 2009 the group had a turnover of 288 TWh representing a value of EUR 10.8 billion and more than 70% of the total consumption of electricity in the Nordic countries.
The Nord Pool Spot group consists of Nord Pool Spot AS and its wholly owned subsidiaries Nord Pool Finland Oy and Nord Pool Spot AB. In addition Nord Pool Spot owns 50% of the Danish gas exchange Nord Pool Gas A/S. In January 2010 Nord Pool Spot and NASDAQ OMX Commodities launched the UK power market N2EX. The Nord Pool Spot group is owned by the Nordic transmission system operators.
Nord Pool Spot provides a market place to producers, energy companies and large consumers on which they can buy or sell electrical energy. Nord Pool Spot is the central counter party in all trades, guaranteeing settlement for trade.
Nord Pool Spot’s system price is the reference price for futures, forwards and options traded in the financial market. The system price is also the reference price for the Nordic OTC/bilateral wholesale market and used by distributors as basis for quoting prices to end consumers.
The Norwegian Water Resources and Energy Directorate (NVE) regulates Nord Pool Spot and issues the market place concession. The Norwegian Ministry of Petroleum and Energy (OED) has authorized Nord Pool Spot to organise the exchange of electrical energy with neighbouring countries.