You often ask

Is the commodity exchange POWER EXCHANGE CENTRAL EUROPE, a.s. (PXE) a Czech exchange?

Yes, the commodity exchange is a Czech exchange and holds a commodity exchange license from the Ministry of Industry and Trade. The purchase of power and natural gas through the PXE commodity exchange therefore meets the conditions of the Public Procurement Act for a tender procedure without publication.

Do we have to announce a tender procedure for a private trading officer?

You do not have to at PXE. Each commodity exchange is obliged, pursuant to the Commodity Exchange Act, to cooperate with a trading officer, who plays an indispensable role in an exchange trade. Historically, the exchange – private trading officer relationship has been set up and this practice is common in other exchange platforms. However, the PXE commodity exchange has “trading officers” directly employed by the exchange. This saves you from having to announce a tender procedure for a private trading officer and saves you not only this administrative step but also its cost.

How often are auctions held?

Auctions can be held every business day. The date of your auction will be set by the PXE general secretary based on your bid once you have prepared a complete bid.

How long does the auction last and where can I watch it?

The basic auction time is 10 min. Subsequently, there are two randomised minutes during which the auction can end at any time. This auction method forces suppliers to reduce the price as quickly as possible, thus saving time for both parties. In long-running auctions, there are unnecessarily inactive parts of the auction. Both the customer and the supplier needlessly lose valuable time.

Trading participants can watch the entire auction process online in the PARC app.

What energy component is auctioned on the PXE commodity exchange and what fees can the supplier add to the winning price?

Only the unregulated portion of delivery is auctioned on the PXE commodity exchange. That is, only items that the supplier is able to influence directly. The supplier can only add taxes to the price resulting from the auction – electricity/gas tax and value added tax according to the legislation in force. The distribution fees stated in the invoice for the combined electricity (gas) delivery services are charged by the supplier in accordance with the applicable legislation, in particular the Price Decision of the Energy Regulatory Office.

Is it possible for two entities with the same volume demanded to obtain the same price?

This is not very likely, as each demand is completely individual in that it contains a different number of points of delivery with a different nature of consumption and setting of payment or delivery terms for each point of delivery. And while it is often said that higher demanded volumes result in a lower price, this is not necessarily true.

How are prices for individual distribution rates determined when there is only one price in an auction?

Although there is only one price in the auction, this can be imagined as the average price for all the points of delivery. To convert the price into individual distribution rate tariffs, you can use the conversion set by us, which corresponds in structure to the most important suppliers, or you can define this structure yourself within the demand and thus influence the final prices in individual tariffs.

Is the auction result binding?

Yes. The result of the auction (exchange floor) is final and unalterable. It is binding for both contracting parties (supplier and customer), which is confirmed by the closing certificate issued immediately after the auction.

How many suppliers operate on PXE and who are they?

The following suppliers currently operate on the PXE commodity exchange.

Where can I find all the information I need to fill out the PARC application?

You will find all the necessary information on consumption and technical data in the electricity/gas invoice from your current supplier. Only the size of the reserved input power for electricity consumption points of delivery drawing from high voltage must be found according to the last contract for the connection of the equipment to the distribution system. ​Notice periods are not yet a mandatory part of the invoice and should be completed according to the latest contracts or their amendments, or checked directly with the current supplier.

Is it necessary to comply with the “blocking period” pursuant to Section 246 of Act No. 134/2016 Coll. on public procurement in the case of the purchase of energy on the commodity exchange?

Pursuant to Section 246(1)(a) of Act No. 134/2016 Coll. on public procurement (PPA), the contracting authority must not conclude a contract with a supplier before the expiry of the deadline for filing objections against the decision on the selection of the supplier (the “blocking period”). This time limit is 15 days from the date on which the supplier became aware of the decision and is extended in the event of objections filed against the contracting authority's decision and in other cases provided for by law.

Recently, there have been many questions from contracting authorities as to whether the blocking period also applies to purchases on the commodity exchange in the negotiated procedure without publication with the use of an exception pursuant to Section 64(c) of the PPA, and thus whether the blocking period essentially prevents purchases on the commodity exchange by public contracting authorities.

The blocking period is not applicable to purchases on the commodity exchange due to the special legal regulation of the Commodity Exchange Act, which is referred to in Section 64(c) of the PPA. PXE's detailed position on this issue can be found here.

PXE's opinion is based in part on an opinion compiled by the PRK Partners law firm (here).

The Ministry of Regional Development, which is responsible for public procurement, takes the same view. The MRD opinion is available here (see page 4).