Dynegydirect Muscles Into Online Trading Scene
Houston-based Dynegy Inc., setting itself up as likely competition for
current online trading king EnronOnline, has launched Dynegydirect, its
own B2B trading site for energy and communications commodities. The new
system will give its customers self-service access to bid and offer prices
across U.S. power, natural gas and natural gas liquids products.
CEO Chuck Watson said the site would extend the company's "global
reach through customized electronic solutions."
Dynegy has been quickly building up its Internet presence this year.
In April, the energy marketer invested $25 million in a joint venture with
Williams to obtain a minority stake in B2B developer eSpeed Inc. (see NGI,
May 1). Then, in September, Dynegy said it
would become a partner in TradeSpark, developed by eSpeed, that offers
open access commodity trading (see NGI, Oct.
Dynegydirect will complement the TradeSpark partnership, said Matt Schatzman,
president of Dynegy's energy trading unit. "Dynegydirect will offer
what you can now do on a telephone and now do it on the Internet,"
Schatzman said. "It will be more efficient, and offer more information
in real time."
Whereas TradeSpark offers a neutral exchange and large standard blocks
for trading, Dynegydirect will be more customized for Dynegy customers,
who will be able to pick and choose what they want, including what size
trades they want to perform. There will be no minimum trade volume on Dynegydirect,
Schatzman said. "This site will offer more of a focus to our direct
customers, and offer more specialization."
Eventually, Schatzman said that Dynegy would like all of its customers
to trade via the Internet. However, he said the company has not set any
specific volume numbers on how much business it expects to capture through
its site. "We do expect the Internet business to grow, but we will
leave that to the customer." He said the telephone broker services
will continue as before, as long as customers want them.
Similar to other energy B2B trading sites, the Dynegy model will offer
a trading "floor." The configurable floors will enable customers
to group products in a customized way for easy access. No limit will be
placed on the number of floors that may be established, and multiple floors
can be tiled on the monitor for full viewing.
In the near future, the site also will offer news and other services,
which customers also may customize. Already, Dynegy has begun registering
all of its existing customers and expects to have them all registered to
trade by the end of the year.
Available now to U.S. customers, Dynegy plans to make the site available
globally in the coming months. The first expansion will be into the United
Kingdom, where power and natural gas, coal, emission allowances, weather
derivatives, international natural gas liquids and bandwidth will be offered.
Dynegy customers and new users can preview the site, and also register
for trading at www.Dynegydirect.com. Schatzman said that it will take about
10 days to complete the registration process and then the site will go
Carolyn Davis, Houston