London, 12 January 2012

npower has become the first energy supplier to offer its customers the opportunity to trade on the N2EX Auction Market. With immediate effect, npower customers can now utilise the N2EX Day-Ahead Auction Index to trade both Base and Peakload Blocks for the first time.

The N2EX Day-Ahead Auction Index product is a new innovative tool to support major energy users in buying energy through their flexible purchasing contract. It was launched in January 2011 and is the clearing price from the N2EX Day-Ahead Auction Market. It now handles a significant volume having during the last month achieved levels of 170 GWh per day on average.

Magali Hodgson, Optimisation Desk Manager at npower, said: “Until now, flexible purchase customers have had more limited options to trade volume on the day-ahead market and we believe the time is now right to offer them the chance to trade on the N2EX Auction. The opportunity to trade Peak as well as Baseload volume on an auction for the first time will be of significant value to many of our customers. It’s another risk management tool we’re offering to ensure our customers have the flexibility they desire, to manage their energy purchasing effectively.”

The N2EX Auction Market was established by NASDAQ OMX Commodities and Nord Pool Spot, and supported by RWE Supply and Trading (RWEST), in 2010 to create a UK energy exchange committed to building market liquidity, efficiency and transparency. It handles significant volumes – for example, on 6 January 2012, it achieved record levels of 266 GWh, enough power to run over 80,000 homes for a whole year.

As well as using the N2EX Day-Ahead Index, npower customers will also be able to continue to use the existing LEBA Day-Ahead Index to trade Baseload blocks. npower customers who wish to use the N2EX Day-Ahead Index should speak to their Business Development Manager or the npower Optimisation Desk to take advantage of the new option.

RWE npower already separates operations such that over 90% of the power it generates is traded on the wholesale market. Unbundling generation and supply in this way ensures non-discriminatory pricing and promotes access for new market entrants.

RWE has led the way in promoting liquidity in European energy markets and was a founding member of N2EX in the UK.

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To find out more about N2EX, go to www.npower.com/n2ex and view the informative video.