ZAGREB, April 26 (Reuters) - Croatia’s spot power exchange CROPEX said on Thursday it would merge with its Slovenian counterpart BSP SouthPool on June 19 after a successful completion of testing activities.
The merger, initially planned for 2017, was delayed for regulatory and technical reasons. CROPEX said the go live date is subject to final approval by the regulatory authorities.
The aim is to join the rest of Europe through the so-called Multi-Regional Coupling (MRC) project which includes 19 countries that account for about 85 percent of European power demand.
The bourse earlier said the project would be carried out through the Italian Borders Working Table (IBWT) project.
Electricity traders expect the link-up to push Croatian trading prices up because of its connection with the more expensive Italian market.
Power markets coupling is designed to optimise the allocation process of cross-border capacities through a coordinated calculation of prices and flows between countries.
It uses so-called implicit auctions in which players do not actually receive allocations of cross-border capacity themselves but just bid for electricity in their exchange.
The exchanges then use the available cross-border transmission capacity to minimize the price difference between two or more areas. The aim is to spur more competition, provide better supply and more stable prices for consumers. (Reporting by Maja Zuvela Editing by Alexandra Hudson)