Energy Trading

Expertise and experience in European-wide energy trading

We are established as a competent and reliable partner in European energy trading. We make good and consistent use of our know-how, our flexible power plants and our experience in international energy trading

We look forward to you getting in touch and to welcoming you as a new trading partner of TIWAG.

You can become a trading partner if you meet the following requirements:

  • You hold all the necessary approvals and licenses for electricity trading
  • We conclude an EFET General Agreement (European Federation of Energy Traders)
  • You have your own balancing group or account with the respective grid operator, or approval from a balancing group or account to conduct scheduled transactions.
  • Your credit lines have been verified and greenlighted by our risk managers.

We will gladly answer all your questions about energy trading. Just get in touch!

Your contact for energy trading

T +43 (0)50607 21130*
F +43 (0)50607 21788
powercontract@tiwag.at

* Please note that all telephone conversations will be recorded by our Electricity trading team for documentary purposes.

FINANCIAL PRODUCTS PHYSICAL PRODUCTS CERTIFICATES

We buy and sell "financial electricity products" to hedge against price changes and fluctuations in supply and demand, and to manage the resulting risks.

The financial electricity products we are trading in include:

Futures

Futures are standardised electricity trading products that are traded on energy exchanges. They are basically very similar to physically traded Forwards, the difference being that an energy exchange acts as the central counterparty, which eliminates the counterparty risk.

Options

Options give the buyer the right to buy (Call option) or sell (Put option) electricity at a predetermined date and at a predetermined price. In exchange for this right, the buyer remunerates the seller with what is called an option premium.

Price limitations

Frequently, electricity trading deals are closed not at fixed prices but on the basis of electricity price indices such as the exchange-based Phelix Base on the EEX, or Platts Forward Assessment for Germany.

This makes it possible to deliver electricity to trading partners who base their prices on the  respective reference markets, and to benefit from future price developments.

Price limitations are used to limit price risk especially in index-based electricity deals. CAPS involve the payment of a risk premium to reduce the risk of price increases within a given period to a specified ceiling. FLOORS guarantee minimum sales proceeds when prices are falling.

Swaps

For our purposes, swaps are agreements whereby only the difference between a fixed and a floating price is exchanged. This secures a price against future developments and minimises the risk. A variant is a  Location SWAP between different markets in which we are active.

We buy and sell electricity and related products. Our offering ranges from standardised electricity trading products to individual agreements tailored to meet the requirements of our partners.  

Spot market

Electricity is traded as a commodity on the spot market. Spot  trading is trading within the same trading day (intraday trading), the next trading day or days (day-ahead trading), the next trading week or weeks (week-ahead trading). We trade on the various broker platforms, of the European Power Exchange in Paris (EPEX), the EXAA Energy Exchange Austria in Vienna (EXAA) and the NordPool Spot Lysaken in Norway.

Forward market

We trade in the standard products of the next weeks, months, quarters and years both directly over the counter (OTC), on the various broker platforms and on the European Energy Exchange AG (EEX) in Leipzig.

Complex contracts

We customise our products to meet the individual needs of our electricity trading partners and customers. Customised products include contracts on virtual power plants, energy exchanges, the marketing of flexible assets for balancing energy, or scheduled deliveries based on a specific profile. Depending on your preferences, fixed or index-based prices can be applied.

Hydropower certificates

We own and operate a large number of hydroelectric power plants. The generation of renewable energy from hydroelectric power plants adds ecological value compared to energy of unknown origin bought from an energy exchange.

Guarantees of origin give proof of the energy source and can be used by electricity suppliers as evidence in electricity labelling. Some guarantees of origin can also be traded or provided irrespective of electricity as a commodity. The development and use of guarantees of origin is monitored by independent agencies.

Trading with emission allowances

Trading with emission allowances or EUAs was introduced in the European Union to reduce emission levels from thermal installations. Traded over the counter or on the stock exchange, EUAs put a monetary value on "pollution rights" and are an additional incentive to produce electricity using zero-emission or at least low-emission technologies.

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