Single entity scrapped from EMD reform: Epex Spot

The pan-European single legal entity (SLE) proposed by the European Commission will not be included in the final electricity market design (EMD) reform, Paris-based power exchange Epex Spot representatives told Argus.

"From what we have seen, in the final version of the text, the reference to 'single entity' has been completely taken out from the relevant articles in the European electricity directive," Epex Spot said at the sidelines of the E-world conference in Essen.

In the text seen by Epex Spot, the SLE has been replaced by "different governance options", although the exchange has no information on the concrete meaning of that concept. "That wording is the result of diplomatic negotiations and has on purpose remained broad," Epex Spot said.

The exchange, together with other nominated electricity market operators, convinced the European Parliament to adopt amendments against the SLE in July, and wrote a joint letter with power exchange Nordpool in November, arguing that the new entity could increase operational risks and would not be able to support local requirements for market coupling. In addition, the exchange representatives told Argus that Epex Spot's pipeline of projects was already long.

The vote on the European market design is expected to take place next month.

By Tatiana Serova