Poland's Power Bourse to Lower Fees to Win New Players

Poland's POLPX power exchange will lower fees and extend trading hours this year to win new customers in its drive to become a regional trading hub, its chief executive said.

A key for the exchange, which currently offers physically-settled power and gas contracts, is the development of gas trading.

POLPX launched its gas market in 2012, but trading activity remained sluggish until last year, when Polish gas monopoly PGNiG made a significant increase to volumes sold through the exchange.

The bourse will also endeavour to broaden its reach by seeking to attract gas and power traders from across central Europe and as far away as big financial centres such as London, POLPX chief Ireneusz Lazor told Reuters.

"The great task is attracting new participants, since it is impossible to grow without them," he said.

"The main partners for us could be entities from Germany, but also from the Czech Republic, Slovakia and Hungary. We do not forget about London (either)."

To lure new participants to its gas market POLPX plans to lower trading fees in the second half of 2015 and extend trading hours from the current market close at 1.30pm to be more in line with its European rivals.

The exchange competes with both the Prague-based Power Exchange Central Europe and Hungary's HUPX exchange. The Prague bourse is the only regional exchange offering financially-settled futures but Lazor said this is among POLPX's goals for this year.

"We are waiting for the Finance Ministry's approval for launching the financial market. We hope to receive it in January and then, within three months, we will launch the market," he said.

Lazor reiterated that POLPX is looking to offer futures contracts in 2015, which combined with the other initiatives could push trading volumes to record levels this year.

Total volume on gas trades was 112 terawatt-hours (TWh) last year, while power volumes amounted to 187 TWh.

"An increase in (gas) volumes by 15 percent should be possible," Lazor said, adding that 200 TWh is the aim for the electricity market.

(By Anna Koper, Writing by Agnieszka Barteczko)