Local energy firms hedging in European Energy Exchange

An increasing number of energy companies in Greece are opting to hedge through the European Energy Exchange (EEX) and the derivatives market as a means of monitoring and countering risks prompted by strong price fluctuations and volatility in markets.

Most recently, the Mytilineos group registered with the European Energy Exchange, joining Protergia, the group’s energy supply company, which was already a member. Two major energy companies are set to follow suit, energypress sources informed.

The liquidity of the European Energy Exchange, combined with the security offered by a range of its products, allows participants to hedge their exposure to the markets and, therefore, reduce their risk ratio to sustainable levels.

Given that the EEX is a market leader in power derivatives, it offers significant opportunities to participants, as they can trade in 20 markets in addition to the Greek market, which currently has specific limits and restricted liquidity.

At present, the EEX includes 13 Greek participants, the majority trading in the producer market and 4 in the spot market, while two more new registrations are expected to be announced within the next few days.