The IPE had introduced its original contract in March 2001 in response to the UK’s New Electricity Trading Arrangements.
Month, quarter and season contracts will now be available to trade concurrently, also unlike the original product. At launch, the first traded month will be November 04, the first quarter, Q1 05, and the first season, summer 05. The IPE also changed its natural gas contracts to the concurrent approach in May.
The contracts will be cleared through LCH Clearnet and have a minimum trading size of 10 megawatts. The IPE will offer the normal EFP, EFS and block trade facilities and grant margin offset arrangements against other IPE contracts, including natural gas futures.
The trading, registration and clearing of the contracts will cost 0.225p per megawatt hour inclusive.