European utilities forge e-marketplace

A European Internet exchange has been set up to meet the needs of utilities companies.

Founded by 12 European utilities - including National Grid Company, Northern Electric, Scottish Power and United Utilities - the marketplace will co-ordinate the online procurement needs of the utilities sector. The members claim the market could trade as much as E30bn (£18.7bn)

Initially the marketplace will focus on the water and electricity industries. It will include both supplier and buyers and aims to streamline the supply chain by automating procurement and managing capacity more efficiently.

The founding members together have an 80 per cent stake in the venture, with the rest being given to suppliers and partners. Although the technology for the exchange has not yet been decided, the partners say it will be up and running by late summer 2000.