Transcript for Daily or CWE Shadow Auctions

Rules for Capacity Allocation
by Explicit Auctions
within
Central West Europe Region (CWE),
Central South Europe Region (CSE)
and Switzerland
Workshop - Forum
Brussels, September 26th 2011
1/31
Introduction
• The origin of the project: the Memorandum of
Understanding (MoU) signed May 19th 2010 due to CSE
works for harmonising
– Step 1: delegation to CASC with current rules for CSE and SNB (2011)
– Step 2: harmonisation CWE/CSE/Switzerland (2012)
• What is behind the word “harmonization”?
– Propose to participants a unique entrance for contracting with the
Joint Auction Operator (CASC) and provide them a similar way of
functioning on all borders covered by a single Auction Rules (AR)
document
– For 2012, the target is to compile this set of AR even if similar
managements are not yet in place for all mechanisms/regions
2/31
Existing Auctions Rules
• CWE
Rules for Capacity Allocation by Explicit
Auctions within Central West Europe
Region (CWE Auction Rules) version 2.2
• Swiss – Austria
Rules and Regulations for the Auctioning
of Cross-Border Electricity Transfer
Capacity on the Extra-High-Voltage
Interconnectors between the Control
Areas of APG and Switzerland by Austrian
Power Grid AG (APG) and swissgrid ag
(Swissgrid) Version 1.02
• CSE
ACCESS RULES TO FRANCE-ITALY,
SWITZERLAND-ITALY, AUSTRIA-ITALY,
SLOVENIA-ITALY, GREECE-ITALY
INTERCONNECTIONS (Capacity Allocation
Auction Rules) 2011 with Joint Auction
Office
• Swiss – Germany
Rules of EnBW Transportnetze AG (TNG),
Amprion GmbH (Amprion), VKW-Netz AG
(VKW NETZ), and swissgrid ag (swissgrid)
Hereinafter jointly designated the “Auction
Partners” for the Yearly, Monthly and Daily
Auction of the Available Transfer Capacity in
the cross-border electricity trading between
the control blocks of Germany and
Switzerland no version / no duration
3/31
12 Borders covered by the new AR
• CWE borders:
BE-FR, BE-NL, DE-FR, DE-NL,
• Italian borders:
FR-IT, CH-IT, AT-IT, SI-IT, GR-IT
• Swiss Northern Borders:
AT-CH, CH-DE
• New Border covered:
CH-FR
On going project for introducing
explicit auctions for the PTRs
starting from 2012 as delivery
period. This border is included in
the new AR.
Dedicated forum: 8th November 2011
NL
DE
BE
FR
CH
AT
SI
IT
GR
4/31
Planning
Objective:
1st Yearly Auctions performed beginning of
December 2011 with the new set of AR
Consultation: 13th of September to 4th of October (3 weeks)
Comments may be sent to:
[email protected]
5/31
First Yearly Auctions
on Dutch Borders
Due to the Dutch Grid code, first Yearly Auctions are scheduled
between mid September and mid October, so under current
CWE Auction Rules.
But Participants shall be aware that the allocated Capacities
during these Auctions will be governed by the new set of Auction
Rules when they come into force for the 2012 PTRs.
The draft Auction Rules under consultation are available for
participating in these Auctions
6/31
Alternatives to be considered
In case the new set of AR cannot be ready in time for governing
the allocation of 2012 PTRs, the following solutions could be
applied:
• For CWE region and for the DE-CH and AT-CH Borders, the
current sets of Auction Rules will apply;
• For Italian Borders, a 2012 set of Auction Rules mainly based
on 2011 Auction Rules will have to be approved;
• For FR-CH border, a new set of Auction Rules will have to be
issued (based on the Auction Rules under consultation) and
approved.
7/31
Main topics
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Auction Rules structure
Entitlements
Participation in Yearly/Monthly Auctions
Participation in Daily/CWE Shadow Auctions
Financial guarantees
Daily offered capacities lower than non-nominated LT PAs
Fall back procedures
UIOSI and Secondary Market: Transfer and Resale
Scheduling information remaining
Reduction in Held Capacities and Financial Compensation
Reduction in Exchange Programs and Financial Reimbursement
Liability clause / Force Majeure
8/31
Auction Rules structure
• The AR deals with the Allocation of PTRs
– Only one Declaration of Acceptance (DoA) dealing with the Allocation;
no DoA for Nomination (DoAN) like currently in the Italian borders AR;
– The DoA will be signed by the Joint Auction Office and the Participant
(all documents will have to be re-signed)
• The AR are issued for an unlimited period
• In order to give Participants a general overview, in the AR,
remaining border specificities will be explained in the main
part, no longer in the appendices and clarify the principles
was one of our main goal.
9/31
Entitlement
Section III
• Article 3.01/ Registration
• Specific roles: CWE Shadow Auction Only, Beneficiary of a Transfer
• Article 3.02/ Financial Guarantees
• Article 3.03/ Entitlement
• Participation in Yearly and Monthly Auctions
• Participation in Daily and CWE Shadow Auctions
10/31
Participation in Yearly
and Monthly Auctions
• Any entity will be entitled for all Yearly
and Monthly auctions operated by the
Joint Auction Office under the new set
of AR if it is active on the Electricity
Market in at least one control area (see
list in the next slide)
UIOSI, Transfer
and Resale
mechanisms can
be used by
Participants even
if they cannot
nominate the
PTRs bought
11/31
Participation in Yearly
and Monthly Auctions
An entity shall have at least:
• a Participation Agreement for the Import/Export
Rules with RTE, and/or
• an ARP Contract with ELIA, and/or
• a Bilanzkreisvertrag with EnBW TNG, and/or
• a Bilanzkreisvertrag with Tennet GmbH, and/or
• a Bilanzkreisvertrag with AMPRION, and/or
• a Balance Group Contract signed with Slovenian
Market Operator or signed a Contract for
settlement of imbalances with the Balance
Responsible Party in Slovenia, and/or
• a Balance Group Contract with Swissgrid.
• a PV Contract with TenneT TSO BV, and/or
• an Energy Transactions Contract with HTSO,
and/or.
• a Contratto di Dispacciamento with TERNA,
and/or.
• a Datenübermittlungsvertrags-Paar with APG
and a BGV-Vertrag with APCS which together
result in a valid Genehmigungsbescheid from
Energie-Control Austria.
NL
DE
BE
FR
CH
AT
SI
IT
GR
12/31
Participation in Daily
and CWE Shadow Auctions
• An entity will be entitled for Daily or
CWE Shadow Auctions if it respects
specific requirements per border and
even per direction
This mechanism
entitles only
entities being
able to use the
PTRs allocated
13/31
Participation in Daily
and CWE Shadow Auctions
14/31
Financial Guarantees
Financial checking of the Business Account is now harmonized
with only one specificity remaining for the Yearly product:
• 2/12th on most of the Country Borders except on AT-CH
where the Yearly product is paid in one settlement.
Beneficiary of Transfer Role: no financial guarantees (Business
Account) needed.
As a reminder
Monthly Auctions: Valuation of obtained Capacities shall be covered in the
Business Account.
Daily Auctions:
full Bids valuation shall be covered in the Business
Account.
15/31
Daily Offered Capacities lower than nonnominated Yearly and Monthly PA
Currently, in the Auction Rules:
On all Country Borders, except on CWE Market Coupling
Borders, in this case, the non-nominated Yearly and Monthly
Programming Authorization are curtailed on a pro-rata basis and
the Participants will receive a financial compensation similar as a
reduction of Held Capacities (100 or 110% of the original price of the
Capacity).
Disclaimer: On CWE Market Coupling Borders, this article is still under
discussion between the TSOs and the Regulators regarding the necessity to
introduce, on one or several Country Borders, a mechanism for hedging the
financial risks of TSOs (including potential introduction of caps).
16/31
Daily Offered Capacities lower than nonnominated Yearly and Monthly PA
Solutions under discussion among CWE TSOs and NRAs
Option 1: send PA later after coordinated NTC D-1 calculation?
Option 2: capping the UIOSI compensation?
Option 3: assure NTC D-1 ≥ PA through coordination and redispatching?
Other options or a combination can be envisaged
Feedback from Market Participants is welcome during the
Auction Rules consultation period
17/31
Fallback modes principles
CWE-CSE-Switzerland Auction Rules
Yearly & Monthly
Auctions
Daily Auctions
IT-SI Market
Coupling
Fallback
mode
CWE Market
coupling
Fallback
mode
Daily Auctions
Fallback mode
Fallback mode
Fallback mode
CWE Shadow Auctions
Postponement
or bidding by
fax
Equal share
If applicable in
terms of timing and
only to Participants
able to use the
daily PTRs
Fallback
mode
18/31
UIOSI
UIOSI mechanism will be applied on all Country
Borders.
Explicit resale to Daily Auctions will no longer exist on CH-DE
and CH-AT Borders.
19/31
Secondary Market
Transfer mechanism of Yearly/Monthly Capacities
between Participants is harmonized
The Capacity to be transferred shall be first paid by the
Transferor or blocked on its Business Account and the
Beneficiary shall accept the Transfer.
Resale of Yearly Capacities to a Monthly Auction
remains as today
On CWE Country Borders, the resale is feasible as soon as the
Yearly Capacity is allocated (after the end of the contestation
period).
On all the other Country Borders, the resale is feasible only if
the yearly capacity allocated is paid or blocked on the
Business Account.
20/31
Scheduling information
remaining in the AR
• The AR only deal with Capacity Trader (CT) Role
• However, depending on mechanism in place on each border,
the Participant can designate a Nomination Agent in some
countries for scheduling.
• If this designation mechanism is performed by CASC, the
Nomination agent will also receive the Programming
Authorization by CASC.
• This is the only information remaining in the AR related to
the scheduling like currently in the CWE AR.
• Other information like deadlines for scheduling or the way
matching will be performed by TSOs are or will be described
in local nomination rules.
21/31
Scheduling information
remaining in the AR
Example:
Participant A
Nomination Agent
on exporting side
Nomination Agent B
Nomination Agent
on importing side
Nomination Agent 1
Nomination Agent 2
Nomination Agent 1
Nomination Agent A
Nomination Agent N
22/31
Scheduling information
remaining in the AR
This table is a clarification of mechanisms that are already in
place today!
For Yearly and Monthly Capacities:
For Daily Capacities:
23/31
Reduction in Held Capacities
and financial compensations
CWE Borders, FR–CH in both directions and FR>IT:
•
•
For reasons linked to the Safety of the Power System or in the event of
Force Majeure, the Held Capacities can be Reduced until the sending of
Programming Authorizations.
After sending and except in case of Force Majeure, the Programming
Authorizations are firm for Nominating with the concerned TSOs.
On all the other Borders (CH-IT, AT-IT, AT-CH, CH-DE, SI-IT, GR-IT
and IT>FR):
•
For reasons linked to the Safety of the Power System or in the event of a
Force Majeure, the Held Capacities can be reduced, until the deadline for
the Nomination with the concerned TSOs (limited to a number of
equivalent days on Italian borders for reasons linked to the Safety of the
Power System ).
24/31
Reduction in Held Capacities
and financial compensations
Changes in the Compensation schemes
BE-NL Border
> the compensation scheme currently in place on FR-BE Border will apply
Market spread with a cap on the spread prices and a cap related to the
Auction revenues collected during the concerned month (1/12 of the
Yearly Auctions and Monthly Auctions).
DE-FR and DE-NL Borders
> TSOs committed to harmonise CWE compensation by using the same
compensation scheme as on FR-BE Border and BE-NL Border
25/31
Outlook: CWE Future compensation
scheme for reduction of held capacities
Compensation schemes will be re-examined at the latest when
CWE Flow Based MC is introduced in order to be in line with the
Framework Guidelines CACM and eventually with the Network
Code
Topic to consider:
Time factors
» Curtailment announced before a reasonable lead-time defined by
NRAs
» Curtailments of long duration
26/31
Reduction in Exchange Programs
and financial compensations
Changes in the Compensation schemes
In case of Force Majeure and on all Country Borders:
• Exchange Programs can be reduced;
• and the capacities corresponding to the concerned
Exchange Programs are reimbursed at the original price.
27/31
Liability Article / Force Majeure
Liability clause has been harmonized based on the Italian
Borders Auction Rules principles.
Force Majeure definition has been modified in order to comply
with Framework Guidelines on CACM.
28/31
Conclusion
29/31
Harmonized features
• A unique contract for participating in all explicit allocations on
12 borders covering 2 regions
• Same wording / concepts for all these borders
• Nomination aspects excluded from HAR (separation of nomination agent
and CT role)
• Entitlement
• Financial guarantees
 Modification of compensation scheme toward Market Spread
on BE-NL, DE-NL and DE-FR borders.
 UIOSI (now also on CH borders instead of UIOLI)
• Many technical differences from Participants point of view are
reduced (publication of auction specifications, number of maximal bids, contestation
period, settlement, etc.)
30/31
• Thank you for your participation
31/31