EMISSION CERTS. SALES

[BIZ: Aachen, June 13]
In the view of Trianel European Trading, GmbH, Meuse-Rhine’s power company, the planned auction of a part of the emission certificates for plant operators is a danger to competition in the energy market. The plan is to auction around 9% of the emission certificates in the second trading period i.e. 2008-2012. This amounts to 40 million emission certificates per year. The auction will hit both new and existing plants, so that an increase in the real costs for energy service providers is to be expected. This would reduce encouragement to invest in power plants and make it more difficult for new parties to enter the market. Against the background of a situation without competition in the market as has been established by the EU, Trianel urges that new plants with high capital investment be spared the auction at least for the duration of one trading period. If this doesn’t happen, the increase of independent market participants, in what is in fact an oligopoly in power generation, will be reduced and prices will not drop as a result of the absence of competition. This will also be a disadvantage to Germany vis-à-vis other EU countries, which could be the recipients of German investment.
http://www.trianel.com/