Some findings

Slide 6 of 8 When evaluating the Nordic power markets use of electronic commerce, the choice of definition is very important. Depending on the definition of electronic commerce used, the Nordic power market is more or less successful. A narrow definition, restricted to the act of establishing an agreement by use of computers connected in networks, makes it less successful. Only a small percentage of the trade transactions in the Nordic power market are carried out by use of electronic commerce according to a narrow definition. Elspot and Eltermin markets at Nord Pool represents 20% of the turnover, and a part of this 20% is traded electronically. A broad definition makes it a success. This is because activities related to the action of doing a purchase is done by using network and computers in a large scale.

The laws and regulations relevant for trading power should affect all role players of the same role equally. This is not the case in the Nordic power market today. Both regarding accesses to consumers sited in another country and regarding use of electronic commerce there are differences. So far, role players sited in England and the US have not been allowed to trade online on the financial market at Nord Pool due to legal restrictions.

Electronic commerce is a tool which successfully can support the underlying reality and not visa versa. In the case of the Nordic power market electronic commerce is mainly rising the speed of trade transactions and information flow, and increase the ability to integrate back office systems with trading systems.

The Nordic power sector has an existing infrastructure, well suitable to do electronic commerce for core business at today’s scale. Having such an infrastructure I did hope to find use of electronic commerce besides core business as well. But there is as good as no indication of cross sector use. Other sectors such as transport and banking have had more success in doing cross sector electronic commerce.