What is PXE ?

The Power Exchange Central Europe, a.s. (PXE, http://www.pxe.cz) is a business platform for trading with electricity in the Czech Republic, Slovak Republic and hungary. Established on 5th March, 2007 (under the old name Prague Energy Exchange), it aims at setting new rules for trading with electricity; causing it to enter a whole new era where the price is driven mainly by the relationship between the current supply and demand.

The PXE is the first market of its kind in Central and Eastern Europe. Inspiration for its establishment and pricing system derives from the energy exchanges already operating elsewhere in Europe. By its activities,the PXE intends to create a solid and standardized platform for electrical energy trading, both from the point of view of its size and liquidity.

The PXE has introduced a competitive environment to the electrical energy market, thereby promoting its liberalization. It provides all PXE participants with the same trading conditions regardless of the size of their transactions. One of the main advantages of energy trading on PXE is the transparency in energy pricing that is based on principles identical to those commonly used in other countries of the European Union. Another major benefit of the new market is the continuous energy trading not only one year, but also three years in advance; thus bringing price stabilization to the market which facilitates price development forecasts, in turn significantly helping to eliminate price shocks. The operation of the new Energy Exchange should positively influence the sale of electricity to end users and consumers.

Who is Behind PXE?

The prime mover behind the PXE is the Prague Stock Exchange. PXE can therefore draw from the wide experience of the organizer of investment instruments market in the Czech Republic. Its specially adjusted trading system combines uniqueness of capital with commodity markets to create an unrivalled system that remains unprecedented in Central and Eastern Europe.

The highest supervisory body of the PXE is the General Meeting gathering founders of the company - Prague Stock Exchange, Central Securities Depository Prague (former Univyc) and Central Counterparty.

The next important body of the PXE is the Exchange Chamber:

  • Petr Koblic, President and CEO of the Prague Stock Exchange
  • Helena Čacká, Vice president – CEO of the Central Securities Depository Prague
  • JUDr. Bohumil Havel, PhD. – Member of the Legislative Council of the Czech Government

The activities of the PXE is governed by the Secretary General, David Kučera.

The operation of the PXE is guided by three committees:

  • Trading Committee – an association of selected market participants recommending adjustments to the Exchange’s trading system and trading rules
  • Settlement Committee – suggests the principles and rules of the method of Trade Settlement
  • Strategic Committee – submits proposals for the further development of the PXE; it is attended by representatives of the Ministry of Finance, the Ministry of Industry and Trade, the Energy Regulatory Office (ERO), ČEPS and the Czech Energy Market Operator (OTE)