IFE-CASC.EU project Forum with market parties Paris – 18th June 2013 1.

IFE-CASC.EU project

Forum with market partiesParis – 18th June 2013

1

Welcome and Agenda

• 9:30 - 10:00 - Welcome of participants • 10:15 - Project presentation • 10:30 - Presentation of CASC.EU• 10: 45 - Proposed evolutions for the yearly and

monthly allocations • 11:10 - Proposed evolutions for the daily and

intraday allocations • 11:30 - Feedback from market parties • 12:30 - 14:00 Lunch

2

Project presentation• Context and background

• Over the last 2 years, RTE, REE and CASC.EU have been working for the integration of IFE LT auctions in CASC.EU platform following ACER recommendations (FWGL-CACM and cross-regional roadmaps presented at Florence Forums)

• After the 10th IG meeting of this SWE-ERI, TSOs requested to Regulatory Commissions, and Ministries where relevant, the needed comfort for the project and sent a detailed project description

• A MoU between CASC-RTE-REE was signed in 15th April 2013

3

Main goals of the project• Foreseen scenario :

Transfer of the IFE Yearly and Monthly auctions to

CASC-EU, Current situation in IFE

PTR Annual auction: REE

PTR Monthly auction: RTE

PTR Daily auction: RTE

PTR ID auction: REE

Situation in IFE in 2014

PTR Annual auction: CASC.EU

PTR Monthly auction: CASC.EU

PTR Daily auction : RTE

PTR ID auction: REE

• Daily Auction will be replaced by Day Ahead Market Coupling SWE-NWE

4

Planning 15th April 2013: MoU signature. May 2013: Information towards Market Participants (MP), NRAs and

other TSOs. June 2013:

Launch of Public Consultations on LT and ST Auction Rules (3 weeks)

IFE Users’ Forum (18th June) Comments on the two set of Rules (during the consultation period)

July 2013: Submission of final IFE LT and ST Auction Rules to the NRAs (Spanish Ministry and CRE), for their approval

Foreseen Go live for December 2013 Auction, subject to NRA approval

5

Evolutions of long-term auctions

• Yearly and monthly auctions on IFE will be no longer covered by IFE rules all references to long-term auctions have been removed by IFE rules 3.0

• Yearly and monthly auctions on IFE will be covered by a new version of the Harmonized Auction Rules (HAR v2.0)

• Public consultation is now open (until 21st June for HAR 2.0, 25th June for IFE rules 4.0)

6

7

• The HAR deals with the Allocation of PTRs– Only one Declaration of Acceptance (DoA) on HAR dealing with the

Allocation; no DoA for Nomination – The DoA will be signed by CASC and the Participant

• DoA for nomination will be covered in local regulation (Spanish Operational Procedure 3.1 and I/E Rules in France)

• The HAR are issued for an unlimited period

• Some border specificities

HAR - Auction Rules structure

8

HAR - Participation requirements

• Signature of the Declaration of Acceptance (DoA)

• Financial Guarantees : Business Account Entitlement

9

• Any entity will be entitled for all Yearly and Monthly auctions if it is active on the Electricity Market in at least one control area

For Spain:• Certificado del Operador del Sistema-Sujeto del

Mercado issued by REE

HAR - Participation requirements

UIOSI, Transfer and Resale mechanisms can be used by Participants even if they cannot nominate the PTRs bought

10

HAR - Financial Guarantees

Cash deposit – Business Account (no more bank guarantees for LT PTRs on IFE).

The Credit limit to be awarded of capacity should cover :

•Monthly product: full amount•Yearly product: 2/12th of the total amount

•Amounts are blocked•Invoicing/self-billing : 5 working days of M+1

11

For France-Spain, an aggregation of Yearly and Monthly Held Capacities

Sent at 16:00

HAR – Programming authorisations

12

UIOSI mechanism is applied on all Country Borders.

For France-Spain border :– Marginal price of the specific daily auction

Same as today in IFE rules

–Positive day-ahead spot market spread in the affected period in the same direction, in case of cancellation of the daily auction

HAR - UIOSI

13

•Held capacities are firm, except for Force Majeure and Safety of the system. Firm after sending PA, except for Force Majeure.For France-Spain, compensation based on day-ahead spread + two caps:•On the day-ahead market spread values •On the monthly total amount of compensations

•Exchange Programs are firm, except for Force MajeureCompensation is based on initial price.

HAR - Firmness

14

Transfer mechanism for exchanging Yearly/Monthly Capacities between Participants with notification to TSOs

Resale of Yearly Capacities in a Monthly Auction

HAR - Secondary Market

15

HAR - Secondary Market• Bulletin Board : to exchange proposals for transfer among

partiesPrototype of the Bulletin board (please not that below examples of the screens might be different in the production environment)

16

Evolutions of short term auctions

• Yearly and monthly auctions will be no longer covered by IFE rules 4.0 all references to long-term auctions have been removed

• Public consultation is now open (until 25th June)

17

Main improvements• New definitions:– Auction Administrator, Contestation Period, Intraday

Product, Offered Capacity and Rules for Capacity Allocation by Explicit Auctions

• Cancellation of some definitions due to:• IFE rules v4.0 perimeter: Monthly Product, Resale

Notification, Reseller definitions, Secondary Market Operator, Secondary PTR markets, Transfer Notification and Transferor definitions, PTR Holder and PTR Transfer.

• Text improvements and clarifications: CNE and CRE, Ministerio de Industria, Turismo y Comercio, Ministerial Order, Beneficiary, Force Majeure and Reduction Coefficient.

18

Main modifications• To cover the new rule’s perimeter (only daily

and intraday timeframes)– Art 1.02, 1.03, 2.03, 2.06, 4.01, 4.04, 6.03, 7.01 and 7.02

• Improvement and clarifications on the text on:– Bank Guarantee nature, amount, modification and

invocation (art. 3.02)– Entitlement conditions (art. 3.04)– Suspension and withdrawal of Entitlement process (art. 3.05) – Other general text improvements

19

Main modifications• Articles no longer needed in IFE rules v4.0

– Article 2.07: As firmness of exchange programs is covered in local contracts / regulation

– Section VI on Secondary PTR Market, as is dealt in HAR rules– Articles 7.01 and 7.04 (to cover only daily/intraday timeframes)

• Articles updated due to new terms:– Auction Administrator (art. 1.05, 2.02, 3.02, 3.04, 4.02, 6.02, )– Offered Capacities (art. 2.04)

• New article 9.04 on Intellectual property.• Improved description on Payment conditions and

Payment Incident (art. 7.02)• Resale and Compensations concepts (art. 7.01) were

eliminated 20

Appendixes updates• Appendix 1: Minor modifications

• Appendix 2: Now covers both TSOs. New conditions for Bank Guarantees. New model of letter of invocation of Bank Guarantee.

• New Appendix 3 on Downgraded Mode: modifications to cover only daily and intraday timeframes.

• Appendix 4: contact details updated.

• New Appendix 5: new appendix for listing the functions of Auction Administrator and their splitting between TSOs.

• Old Appendices 3, 5, 6, 7 from IFE Rules v3.0 have been deleted

21

OPEN DISCUSSION

22