Update on Coordination of long term auctions in the FUI region

FUI IG, London, 13th September

Background

• Dublin FUI SG: Coordination of long-term auctions = medium priority

• Work to date: Identified challenges involved in coordination, highlighted opportunity for “quick wins”

• EC “reasoned opinion” highlighted lack of coordination of congestion management methods in FUI– Nothing implemented– No roadmap or commitment to timescales to coordinate– Cited Article 3.5 – Congestion Management Guidelines …

Priority areas identified for coordination(Art 3.5, CMG Annex)

“With a view to promoting fair and efficient competition and cross border trade, coordination between TSOs within regions … shall include all the steps from capacity calculation and optimisation of allocation to secure operation of the network with clear assignments of responsibility …”

c)Identical obligations on capacity holders to provide information on their intended use of the capacity, i.e. nomination of capacity (for explicit auctions),d)Identical timeframes and closing times,e)Identical structure for the allocation of capacity among different timeframes (e.g. 1 day, 3 hours, 1 week, etc.) and in terms of blocks of capacity sold (amount of power in MW, MWh, etc.),f)Consistent contractual framework with market participants,

Next steps:Following teleconference 04/08/10

1. Coordination of capacity allocation and improving consistency of access rules within the Region (and where appropriate beyond) is a priority for FUI

2. EirGrid, SONI and Moyle public procurement process for a new auction platform launched 23 July 2010, for operation on Moyle Q2/Q3 2011

– be common across Moyle and East-West;– introduce day-ahead allocations on Moyle; and– be developed with a view to consistency with other IFA and BritNed

3. Regulators and TSOs in the region to assess commonalities and differences in the auction rules across the region (based on the relevant aspects of Article 3.5 of the CMG)

– Initial assessment of areas of commonality completed October 2011– Further work to harmonise approach and produce common access rules

document for FUI Region4. Regulators and TSOs to evaluate options for a common portal for auctions

– E.g. CASC model etc.– Initial evaluation to be completed in early 2011 (after EirGrid/SONI tender

process is completed)

LT auction rules and conditions: Overview• Moyle v.different as platform not automated, but

– New platform being commissioned– Opportunity to redefine products, introduce new timeframe

and harmonise …– How can FUI work coordinate with Moyle/EW access rules

process?• IFA, large number of different products available, v. flexible• IFA & BritNed greater levels of synergy• Harmonisation of FUI access rules should be made with a view to

ensuring consistency with other Regions and compliance with Third Package/CMGs …

• What about day ahead?