Interconnector Under Test

Update to TSC Modifications Committee

5th December 2012

Background

• Mod 10 11 raised on 22nd March 2011• Testing Tariffs to apply for Commissioning, Grid Code Compliance or

otherwise

• Meeting 35 • Deferred pending a SEMO Impact Assessment

• Meeting 36 • 3 Options presented• Option 1 was Recommended for Approval

• RA Approval – Letter issued 21st July 2011

Mod 10 11 Implementation Options

FRR dated 28 June 2011 set out the implementation options:

• Option 1 - Market require a facility to designate an Interconnector as Under Test in settlement for a range of trading dates.

• Option 2 - Restriction for submitting bids (definition for a range of testing dates in MPI)

• Option 3 –Inclusion of an Interconnector Unit test profile. This relates to an agreed testing profile between the IA and the SO.

SEMO Assessment SummaryOption Description Incremental

CostTotal Cost

1 Application of Testing Charges to I/C for a range of dates

€59.2k €59.2k

2 Restriction for submitting bids (definition for a range of testing dates in MPI)

€205k €264.2k

3 Inclusion of Testing Profile in Instruction Profiler

€309.3k €573.5k

Modifications Committee Views

• The Committee agreed that Option 1 should be pursued due to the timelines for Intraday Release and EWIC deployment.

• A full solution including Options 1, 2 and 3 was preferable due to uninstructed imbalances arising while under test and restricted bidding.

• In the FRR, the SOs stated that a Modification to Appendix E would be required for Option 3 to be implemented and the SOs would consider raising this Modification in due course.

Mod 10 11 Implementation

• Mod 10 11 (Option 1) implementation date in the CMS was November 2012 release

• Mod 33 11 allowed SEMO to perform workaround to manually apply the Testing Tariffs as per Option 1 from the date of EWIC Commissioning (i.e. July 2012)

• The T&SC was updated to allow Interconnectors Under Test with an effective date for July 2012.

Issues with Option 1

• Not appropriate for Operational Interconnectors– i.e. Not suitable for Interconnector which goes on/off test

• No ability to block bids and offers – Interconnector participants can submit bids/offers even if Interconnector is

under test

• No provision available for test profiles– RA approval required to set DOG and PUG to zero as Interconnector would

be unfairly penalised

Cost of Options 2 and 3 to implement– New vendor quote received for revised design for Options 2 and 3 is now

€307k compared with €504k– Investigated alternate approach

TSOs Recommendation

• Set ATC to zero when an Interconnector is testing – IUN/MIUNs will be zero for Interconnector Users and their bids will not be

taken into consideration – DOG and PUG will need to be set to zero on an annual basis i.e. TSOs will

recommend through annual consultation process for RA approval– Can be implemented immediately

• No further modification to the T&SC is therefore recommended in respect of Interconnector Under Test

• Thank You