Bucharest, June 10, 2010

May 2010: Performance of the markets operated by OPCOM

DAM: The average monthly volume reached this year 800 MWh/h, the equivalent market share for the second consecutive month above 15% of the domestic consumption and the level of participation of 64%, are the relevant figures for day ahead market.

The spot trades set in May 2010 increased over the same period of the previous year by almost 8.52%, the total volume increasing from 572,226.491 MWh last year to 620,975.751 MWh in May 2010, respectively in hourly average values from 769.122 MWh/h to 834.645 MWh/h.

The average price increased from 140.52 lei/MWh (33.69 EUR/MWh) in May 2009 to 157.73 lei/MWh (37.82 EUR/MWh) in May 2010, the variation being of 12% both in local currency, and in the single European currency. The monthly average values corresponding to the hourly electricity transactions set in the European spot markets were placed in May 2010 in a range between 37 EUR/MWh and 60 EUR/MWh, the average price set by OPCOM, 37.82 EUR/MWh, being with almost 12% below the European average, about 43 EUR/MWh.

For the analyzed month, a total of 65 of the 102 registered participants were active and the submitted bids were materialized this month in hourly transactions that varied in a range between 385 MWh/h and 1,171 MWh/h, 10% of the hourly traded volumes being above 1,000 MWh/h. The volume statistics show transactions amounting at least 600 MWh/h (equivalent to almost 10% of hourly average consumption) in 95% of the hourly intervals of the month. These statistics also show that less than 3% of these intervals had total transactions of less than 500 MWh/h.

There were no problems in meeting the commitments of payment according to terms provided, the total payment obligations/rights of collection for the spot transactions amounting, including VAT, 118.7 million lei (28.4 million EUR), out of which the payments made in two banking days represented 113.2 million lei (27.1 million EUR), the difference representing the amount of compensation between participants and OPCOM as central counterparty.

This year’s cumulative values until the 31^st of May 2010 indicate, for the benchmarking period of five months, an increase of the average volume traded hourly, respectively from an hourly average of 730.494 MWh/h in January-May 2009 to an hourly average of 892.612 MWh/h in January-May this year, the increase being of 22.19%. The market share of the spot transactions related to the domestic consumption has gained two percentage points in this first five months of the year, increasing from 12.58% in January-May 2009, to 14.65% in January-May 2010, while the average price increased from 127.82 lei/MWh (30.23 EUR/MWh) to 155.75 lei/MWh (37.71 EUR/MWh).

CMBC and CMBC-CN: A number of 18 contracts in progress in May 2010, amounting an electricity value of 303,468 MWh contracted by public auction on CMBC at an average price of 166.95 lei/MWh (39.71 EUR/MWh)

On CMBC platform, for contracts with delivery periods including May 2010, 32 participants expressed their interest, with an average of 6 players/ auction session.

Public auctions’ results for May 2010 show 11 winners and 18 concluded contracts, equivalent to a quantity of electricity of 303,468 MWh set in delivery, at an average price of 166.95 lei/MWh (39.71 EUR/MWh) and representing 7.85% of the estimated consumption for this month.

A simple comparison of the price signal set for long-term forward contracts (CMBC) begining with 2009, 39.71 EUR/MWh for the month of May 2010, with the average price set in May on the spot market (DAM), 37.71 EUR/MWh, demonstrates the convergence of the forward price with the spot price on the markets operated by OPCOM, while the comparison with the regulated average price supports the idea of the price consistency.

Both convergence and consistency comes directly from the significant share reached by spot and forward transactions together, 23% of the domestic electricity consumption estimated for May 2010.

On CMBC-CN platform, was traded in May for delivery in June 2010, an amount of 14,280 MWh at an average price of 144.59 lei/MWh (34.74 EUR/MWh), equivalent to 85 standard weekly base load contracts. A total of 5 participants introduced offers in the electronic system for continuous trading.

CMGC: The results of the third monthly auction for 2010 increase the number of the green certificates purchased by the suppliers on OPCOM’s platform in order to fulfil the mandatory quota for 2010 to 63,384, equivalent to a share of about 58% of the certificates issued until the trading day.

In order to fulfil the mandatory quota, in the trading session from the 19^th of May 2010, 26 participants of the 102 registered participants expressed their interest and 22,927 green certificates were purchased by electricity suppliers at the price of 232.36 lei/certificate (55.39 EUR/certificate, using the exchange rate valid for the trading day).

In May 2010, the spot transactions alongside the contracts in progress (according to forward transactions), total an electricity amount of 924,444 MWh, both market frameworks providing together 23% of the estimated consumption for this month.