Day ahead capacity Workshop Bonn 9 February

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Day ahead capacity

WorkshopBonn 9 February

European Federation of Energy Traders

EFET positionAdam Cooper EFET Gas

Committee

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• Background to proposals

• Initial proposals

Outline

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Background to Proposals

• Development of German virtual hubs

• ERT development of a ‘Choice market’

• Concern about how to participate

• Availability of capacity viewed as important for liquidity and hub

success

• Capacity access may reduce imbalance risk

• EFET developed ideas for a quickly implemented pilot solution

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Initial Proposals

• Proposed a number of border points for firm and interruptible

capacity

• Sought a bundled entry-exit product to enhance hub to hub trading

• Allow voluntary capacity recycling from users

• Outlined timetable

• Considered revenue issues

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Border Points

Location TSO Exit TSO Entry

Auction Capacity (MW)

Firm/ Interruptible

Bunde-Oude Statenzijl GTS BEB 300 Firm

Bunde-Oude Statenzijl BEB GTS 300 Firm

Bunde-Oude Statenzijl GTS EGT 300 Firm

Bunde-Oude Statenzijl EGT GTS 300 Firm

Emden EPT or –NPT terminal

Gassco EGT 300 Firm

Emden EPT or –NPT terminal

Gassco BEB 300 Firm

Emden EPT or –NPT terminal

Gassco GTS 300 Firm

Ellund Energinet BEB 300 Firm

Ellund BEB Energinet 300 Interruptible

Ellund Energinet EGT 300 Firm

Ellund EGT Energinet 300 Interruptible

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• Any time before the auction up to 0900 invite shippers to

voluntarily offer any available capacity

• Before 0930 the operator publishes available capacity and its

nature

• Between 0930 and 1000 participants indicate volume and price

bids in Euro/MW

• Results before 1015

Timetable D-1

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Nature of Auction

• Held early in the day to promote further trading activity

• No upper or lower price limits

• Could use a cleared price

• Same per unit revenues (could differ for firm and interruptible)

accrue to either the TSO or users offering capacity

• Half revenue to users placing only entry or exit

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Implementation

• Sought implementation by 1 April 2007

• Auction through secure websites

• Use of a common platform to avoid system duplication

• Outcomes to provide lessons for auctions of other capacity

products

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Thank you!