IPE launches UK electricity baseload index

The International Petroleum Exchange (IPE) has launched a UK electricity baseload index in response, it said, to industry demand for a viable index on which to base physical deals. The first pricing period will be for the March 2005 contract.

The first major deal based on the index was reported yesterday, said the London-based exchange. Accord Energy, the wholesale trading arm of UK utility Centrica, and EDF Trading, part of French utility Electricité de France, traded close to half a gigawatt of March baseload electricity. London-based broker Spectron Energy Services brokered the deal.

IPE calculates the index as a rolling average of the front-month settlement price for each trading day. The final index is the one calculated on

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