Logica makes a 'bold move' into B2B exchanges

The company has bought the part of the grid which runs the settlement system for wholesale suppliers and users, ESIS, and the one which runs the payments system EPFAL. Improving the current system, they will build and run a B2B exchange for electricity which Logica hopes to roll out into Europe as the electricity market is deregulated.

Will Cameron, spokesman for Logica, said: "ESIS has already developed a number of products and solutions aimed at the next stage of deregulation and trading."

"This is a market that will mushroom," said Andy Tanner-Smith, analyst at research group Frost & Sullivan. "With liberalisation, the market buying and selling energy will see a lot going on, particularly in B2B.

He added: "I'm surprised at Logica doing this, however. It's a bold move, but they've bought in a lot of minds and sector expertise. Still, it takes some more expertise to run a market."

Cameron explained that Logica had been running the Market Data Clearing House in the US and had acquired energy market expertise there. He expected that the system would provide a 'repeatable product' for Europe and the rest of the world.