A group of 11 leading European utilities today (29 January) signed a shareholders agreement to form an independent industry procurement exchange. The exchange, with a collective annual procurement estimated at more than 30 billion Euros, is to be called Eutilia and will be based in Leiden in the Netherlands.

Internet-based trading will start this spring, focusing initially on catalogue purchasing, forward and reverse auctions and procurement management information.

Partners in Eutilia are: ScottishPower (UK), Endesa (Spain), Edf (France), RWE (Germany), Enel (Italy), Iberderola (Spain), Electrabel (Belgium), United Utilities (UK), Vattenfall (Sweden), National Grid Company (UK) and Nuon (Netherlands).

Ken Vowles, Executive Director of ScottishPower's UK Power Operations, said: "The creation of Eutilia will improve performance, productivity and capital efficiency across the sector and its use of the Internet in particular will promote efficiency and innovation throughout the supply chain."

Eutilia will be a neutral marketplace, which will provide value added services for both suppliers to and buyers in the utility industry by giving them greater market reach and reducing transaction costs.

The initial focus will be on the European electricity and water industries. In addition, the exchange will improve the efficiency of procurement, supply chain management and capacity utilisation.

The estimated collective spend of 30 Billion Euros includes capital expenditure but not labour or fuel.

Further information:
Colin McSeveny,                 ScottishPower         0141-636-4515