Dynegy, the group that fired six percent of its workforce last week, has shut its Internet trading system because the number of electricity and natural gas transactions is declining amid industry credit concerns.
Dynegy, one of the biggest US energy traders and a pipeline company, still is doing transactions by telephone, spokesman John Sousa said. The Web based DynegyDirect debuted in November 2000 and had forty three billion dollars worth of transactions during 2002.
Energy trading is shrinking as regulators probe sham transactions and the collapse of Enron, which ran EnronOnline, once the biggest online market. Dynegy and rivals such as Williams are selling assets to slash debt. Two top Dynegy executives have resigned since the company disclosed phantom power trades with CMS Energy on DynegyDirect.
“The level of liquidity and profit margin were not sustainable,” said Zak El-Ramly, president of ZE PowerGroup, an energy consulting firm. “This is a clear signal, forcing people to readjust and reduce the labor force.”