Online Electricity Trading in Energy Market Becomes Mandatory from Azar

The CEO of the Iran Energy Exchange announced that online electricity trading will become mandatory and transparency in trading on the Energy Exchange will increase starting Azar of this year.

The CEO of the Iran Energy Exchange announced the requirement of online transactions and increasing the transparency of transactions in the Energy Exchange from December of this year.

According to Ambassador Arjan, based on the announcement of the Iran Energy Exchange, the "Iranian Energy Market in the Ministry of Energy" meeting was hosted by the Energy Exchange with the presence of Mohammad Nazifi, the CEO of the Energy Exchange, Mohammad Allah Dad, the CEO of Tovanir Company, Amirreza Bagheri, the Deputy Director of the Iran Electricity Network Management Company, and a group of officials and activists of the electricity industry in the field of energy transactions.

In this meeting, topics such as the development of the export electricity market, the implementation of clause "b" of Article 43, day-to-day transactions and the infrastructure required for the development of these transactions were discussed and reviewed, and the necessity of complying with laws and regulations, transparency of information and improving information power in the market was emphasized.

In this meeting, the CEO of the Iran Energy Exchange, pointing to the convergence of the views, said: "Traditional transactions, which have continued parallel to online transactions since February of last year, have been limited and transactions are conducted online only."

Stating that this change can lead to an increase in the transparency of transactions, Nazaifi stated: Online transactions will significantly reduce human errors and prevent some problems in the transaction process and unusual accesses, as well as make the supply and demand process more transparent for suppliers and applicants, so that market participants can manage their supply and demand.

He also positively evaluated the closer delivery time to the time of future transactions and the possibility of moving towards a shorter trading horizon, which was raised by one of the representatives of the Ministry of Energy in this meeting, and said: In this case, the possibility of trading two or three days before the delivery is provided and it can be a step forward in updating the image of transactions in the market.

Emphasizing the importance of information asymmetry in the capital market, Nazifi said: the information compiled and communicated by the government should be made available to all market participants at the same time, and if a directive is prepared and signed by the government, all market participants should be informed of it at the same time in order to prevent the creation of information asymmetry in the market.

According to this report, periodic meetings of the energy market, hosted by the Iran Energy Exchange, are held periodically with the participation of the stakeholders of the energy sector of various markets, and today's meeting was dedicated to issues related to the Ministry of Energy and electricity market transactions.