Nord Pool restructures for the future
The Nordic and Baltic Transmission System Operators (TSOs), owners of Nord Pool, Europe’s leading power market, announced today, Thursday 3 May, the re-organisation of the legal structure of the company – separating its Market Coupling Operator functions from the commercial Power Exchange functions.
The two legal entities thus created will be owned by a holding company to ensure robust operations, as well as close and cost-efficient cooperation. The new corporate structure was formally agreed by the Nord Pool General Assembly on 19th April 2018.
The change has been driven by the fact that Nord Pool is operating in a rapidly developing industry sector. The Network Guidelines on Capacity Allocation and Congestion Management (CACM) provide the basis for implementation of a single energy market across Europe, and for competition between power exchanges.
Nord Pool is a Nominated Electricity Market Operator (NEMO) in 15 European countries under CACM, a role which is two-fold. Firstly, to fulfil the Market Coupling Operator (MCO) role including operating, developing and maintaining algorithms, systems and procedures for a single day-ahead and intraday market coupling across Europe. Secondly, and simultaneously, continuing to provide market participants with the innovations in power trading products and services that they demand.
A joint statement from Nord Pool’s owners explains: “Both customer related activities, and the obligations related to activities with market coupling operation, are essential parts of a power exchange business."
“We are now preparing Nord Pool for the future by implementing a separation between the company’s MCO functions and the commercial customer functions through a legal split."
“This allows us to ensure operations that clearly emphasize security of supply, while at the same time also ensuring that our customer-focused activities are well prepared for future competition. Customers should notice no difference in their daily dealings with Nord Pool, under these new arrangements.”