Electricity markets

The liberalization of the energy sector makes it possible for eligible consumers to choose their suppliers freely. It has led to the development of an electricity wholesale market, where traders daily carry out transactions, either bilaterally ('OTC'), or on Pools or Power Exchanges which reduce the risks by ensuring the 'clearing' between players. From now on, electricity is traded either as a 'spot' product for immediate physical delivery, or as 'derivatives', inspired by the financial markets (forwards, futures, options...). The commercial transactions are made beyond the geographical borders, thanks to the interconnections between countries, even if these are still insufficient to create a single European market. The Transmission System Operators (in France, RTE) have an essential role, by ensuring the continuity and quality of the high and very high voltage grids, and by providing equitable access to the players. (author)