E.ON has announced it has signed a gross bidding agreement with N2EX for its Day Ahead Auction which led it immediately to significantly increase the size of volume it traded through the platform.

This means E.ON Energy Trading is now trading in excess of 30% of E.ON UK's generation related energy through the Day Ahead Auction with a matching volume from its Retail Sales energy. On the 3rd of January it traded as much as 50% of its generation volume.

Commenting on the increased volumes which improve liquidity and transparency in the market, Dr. Tony Cocker, Chief Executive of E.ON UK said: "We firmly believe that the combination of OTC trading and auction will enhance the UK power market and increase confidence in price discovery and liquidity. Our decision to match our existing clear commitment to N2EX with a binding gross bidding agreement is significant and will hopefully be followed by other players.

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"We want to see a credible and sustainable auction index that can be relied upon consistently - achieving this will give the confidence to new participants to take part in the auction and related OTC contracts. A robust reference price is also an important building block to a successful implementation of electricity market reform in the UK.

"Since the launch of the N2EX auction E.ON has been at the forefront of its promotion and development. We have been a leading participant in the N2EX auction, and repeat our calls for other participants to come on board and match our commitment by increasing the volumes they place within the auction."

(CD/GK)