snamretegas.it
DAY-AHEAD CAPACITY ALLOCATIONSan Donato Milanese, 5th - 6th March 2013
2
III COMMERCIAL ASPECTS AND SRG APPLICATIONS
I INTRODUCTION
II NETWORK CODE
First capacity booking
Starting feasibility study
of Capacity Portal
Starting implementation
phase of Capacity Portal
GO LIVE First booking process and transactions
Introduction of Balancing
Service monitoring
Starting day-ahead auction
3
Evolution of communication methods CAPACITY PORTALPAPER MANAGEMENT
Jul 2009Jul 2001 Sep 2008 Dic 2011 Apr 2013Jun 2006
02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 -
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000 Number of managed transactions
02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/120
102030405060708090
100Number of Users
I Introduction – Evolution of the Transportation Service
4
III COMMERCIAL ASPECTS AND SRG APPLICATIONS
I INTRODUCTION
II NETWORK CODE
Regulatory framework
Resolution 536/2012/R/gas of ‘Autorità per l’energia elettrica e il gas’
• Day-ahead daily capacity at Tarvisio Entry/Exit Point available from 1st April SRG
• Opened access to SRG Network Users: fulfilling with contractual Network Code obligations provided with appropriate guarantees certificate proving ownership of import contract(s) not required by the TSO
• Regulated tariff (Monthly capacity charge) on a daily basis
• SRG Network Code update proposal
• AEEG-E-Control Guideline on a day-ahead allocation mechanism at the Austrian/Italian border
5
Regulatory framework
AEEG- E-Control Guideline
Day-ahead daily transportation capacity allocation criteria (primary market):
• Daily capacity product for TSOs coordinated allocation (Bundled Daily Capacity) at the IP AT-IT border
• Interruptible capacity offered only if firm capacity is not available or sold out day-ahead
• Bundled capacity determined as the minimum available capacity between TSOs Systs
• The TSOs join a common booking platform for the capacity allocation
• Allocation held through auction mechanism according to CAM provisions
• Revenues splitted between the TSOs according to agreements approved by NRAs
• Contracts subscription with each TSO
6
Capacity allocation process
Renomination of daily programmes
SRG Network Code, Chapter 5, par. 5.4
Day-ahead daily capacity allocation at interconnections with foreign transmission Systems
SNAM RETE GAS Network Code
Capacity allocation (1)
8
CHAPTER 5
Allocation criteria
• Daily Firm capacity allocation Interruptible Daily Capacity allocation where Daily Firm Capacity not available /sold out
• Specific access requirements to transportation service
• Ability to operate on PRISMA Platform
• Capacity allocation criteria according to CAM auction mechanism using a ‘uniform price’ algorithm
Reserve Price (regulated tariff on a daily basis)
Bids selected according to the economic value up to the capacity offered by SRG; final price = price of the lowest successful bid
auction premium (unitary charge of the last accepted bid)
Clearing Price = Reserve Price + Auction premium
9
CHAPTER 5
Scope of Daily capacity allocation
Natural gas transportation capacity on SRG Network for a Gas-Day • at ALL Entry/Exit Points interconnected with foreign import/export pipelines• Firm daily transportation capacity and• interruptible daily transportation capacity if firm capacity is not available or sold out day-ahead• Capacity in Sm3/day
Daily capacity definition (each gas day ‘D-1’)
Entry/Exit Points with foreign import/export pipelines
1. Firm Daily Capacity = not allocated capacity for Gas day D2. Interruptible Daily Capacity = not nominated booked capacity for Gas day D
Tarvisio Entry/Exit point
3. Firm Daily Capacity = bundled Firm Daily Capacity + unbundled Firm Daily Capacity 4. Interruptible Daily Capacity = bundled Interruptible Daily Capacity + unbundled Interruptible Daily Capacity
Capacity allocation (2)
B U N D L E D
TAGAvailable firm capacity
for Gas day ‘D’
Firm Daily Capacity offered by SRG
Daily capacity determination at Tarvisio: example *
SRGAvailable firm capacity
for Gas day ‘D’
• N.B. Example scheme for the sole purpose of showing the determination of unbundled capacity (surplus available at Italian or Austrian side, depending each day on the available capacity in each System)
U N B U N D L E D
Firm Daily Capacity offered by SRG
10
CHAPTER 5
Capacity allocation (3)
Participation Requirements
• Transportation Contract with SRG• Ability to operate on PRISMA Platform• Adequate transportation service guarantee (‘Limite di Conferimento’)• Network Code obligations
condition EPSuK < MEPSuK
settlement of the payments
• Transportation Contract with TAG (for bundled capacity request, only)
• Allocation rules for the relevant IP countersigned by the concerned network users
Request • Binding request• Maximum 10 bids per auction
1. capacity to be offered 2. minimum acceptable capacity3. price (additional value as compared to the Reserve Price)
• Σ bids not exceeding the ‘Limite di Conferimento’
11
CHAPTER 5
Capacity allocation process (1)
Allocation resultAuction result Allocation result
12
CHAPTER 5
• notification to each participating party allocated capacity, and related price at the conclusion of the auction process
• publication of final aggregated allocation results
Capacity allocation process (2)
Capacity allocation through auction process• One or more auction according to
capacity on offer requests
• Bundled capacity confirmation subject to verification with the interconnected TSO
N.B. Without prejudice to the Guidelines, the allocation will be not validated in case the Network User does not subscribe the capacity contract with the interconnected TSO
Capacity allocation process
Renomination of daily programmes
SRG Network Code, Chapter 8, par. 6.7
Renomination of daily programmes
SNAM RETE GAS Network Code
Nomination and Renomination of daily programmes in the Gas-day D-1
14
CHAPTER 8
Confirmationof
renomination
21:30
Report ProvisionalAllocation
Data day D-1
11:30
PSV registrations
deadline
Nomination deadline
Confirmation of nomination
Renominationdeadline
12:00 13:00 19:00
D-1 t
By 21:30 of the Gas day D-1 SRG verifies the transportation programme as riformulated and notifies to the Network User the confirmed programme
By 19:00 of the Gas day D-1, the Network User can reformulate its transportation programme for the Gas day D for all SRG transmission network points
N.B. The allocation of bundled capacity by SRG does not automatically imply a capacity allocation for the interconnected systems and vice versa.
Publication of TSO information
14:00/16.00
Publication of TSO information
Publication of TSO
information
Renomination of daily programme
for Entry/Exit Storage and
Redelivery Points
14:00 17:00
G t
By 17:00 of Gas day D, the Network User can reformulate its transportation programme for the Gas day D for Entry/Exit Storage Points and Redelivery Points
Update of TSOinformation
16:00
Update ofTSO Information
19:00
PSV registrations
deadline
16:30
Deadline for presentation of
offers at the PB-Gas
20:00
15
Renomination of daily programmes in the Gas-day DCHAPTER 8
SRG network code -Updating proposal n. 18
http://www.snamretegas.it/en/services/Network_Code/Aree/Area_Aggiornamento.html
Thank you for your attention
Agenda
17
III SRG - COMMERCIAL ASPECTS AND SRG APPLICATIONS
I INTRODUZIONE
II CODICE DI RETE
• Booking process requirements
• Day-ahead daily capacity auctions timing
• Day-ahead capacity on offer
• Day-ahead capacity request
• Allocation Criteria
• Eventual capacity interruption
• Allocation results on the Capacity Portal
Agenda
18
III SRG - COMMERCIAL ASPECTS AND SRG APPLICATIONS
Booking process requirements (1/3)
Requirements for participating at day-ahead booking process
• Ownership of a Transportation Contract with Snam Rete Gas Credentials for the
access to the Capacity Portal
• Registration at PRISMA European Capacity Platform
• Presentation of appropriate transportation guarantees (Credit Limit)
• Compliance with Network Code obligations
EPSuK < 90% MEPSuK condition
Regular payments
• Subscription of a Transportation Contract with both SRG and TAG (in case of bundled
capacity request)
• Ownership of a valid Trading rule countersigned by the Users and uploaded on
Entry Allocation Portal
19
Booking process requirements (2/3)
20
Credit Limit
Snam Rete Gas determines and transmits to the PRISMA Platform, on a daily basis, the Credit Limit for each User.
It will not be possible for Users to bid beyond its Credit Limit.Each bid made by Users will be accepted by the Platform only after having passed the credit limit check.
The credit limit check will not be applied to those Users holding a Credit Rating certification compliant with Snam Rete Gas Network Code.
𝑪𝒓𝒆𝒅𝒊𝒕 𝑳𝒊𝒎𝒊𝒕=𝟏 ,𝟐×𝟏𝟑𝑩𝒂𝒏𝒌𝑮𝒖𝒂𝒓𝒂𝒏𝒕𝒆𝒆−
𝑴𝒂𝒙𝑪𝒂𝒑𝒂𝒄𝒊𝒕𝒚 𝒇𝒆𝒆𝟑
21
Booking process requirements (3/3)
Trading Rule
The Trading Rule at the Interconnection point must be entered in the Entry Allocation Portal by 10:00 of day D-1
Day-ahead daily capacity auctions timing
22
The day-ahead capacity will be auctioned through two daily sessions:• 1° session: allocation of firm capacity• 2° session: allocation of interruptible capacity
Snam Rete Gas will publish the capacity on offer for day-ahead booking process in due time for the Users requests:• on SRG website, and• on the PRISMA Platform (capacity will be converted in KWh/h)
Nomination for Gas Day D
Pubblish capacity on offer and 1°
session auctions
Comunication of 1° session
auctions results
Pubblish capacity on offer and 2°
session auctions
Outcome of matching process
Comunication of 2° session
auctions results
Renomination for Gas
Day D
Outcome of matching process
13:00 15:00 16:30 – 17.00 17:30 17:30 – 18.00 18:30 19:00 21:30
Day-ahead capacity on offer
1° session – Snan Rete Gas offersFirm daiy capacity
firm unbundled
2° session – Snan Rete Gas offersInterruptible daily capacity
(Only in case firm capacity is not available or sold out)
firm bundled
Interruptible bundled
Interruptible unbundled
23
Day-ahead capacity request
Request• Binding• Max 10 bids for each auction
1. Maximum Capacity 2. Minimum Capacity3. Price offered (on top of the Reserve Price)
• Total economic value of bids must be within the Credit Limit
During each day-ahead auction Users can:• submit up to 10 bids for each capacity product on offer (capacity-price);• amend and/or withdraw the bids already submitted;• indicate a minimum capacity amount that Users is willing to be allocated
in case the Maximum Capacity is not fullfilled.
24
Allocation Criteria
25
Uniform Price algorithm:
• ranking of all bids according to their prices, the highest price ranking first;• Users bids are awarded in the given order until the amount of available capacity is
reached;• the clearing price of the auctions is determined as the price of the last awarded
bid;• the pro-rata allocation applies only between equally ranked bids that cannot be
fully satisfied.
The total price that will be charged to each winning User is equal to:• the sum of the clearing price and the regulated tariff; or• the regulated tariff, in case the total capacity demand is equal or less than the
offered capacity.
26
The re-nomination made by 19:00 is open to all Users, also to those Users not participating in the auctions.
• The capacity not nominated by 13:00 and assigned as interruptible in the second auctions session, can be re-nominated by both the original Users and the Users that have been awarded in the 2°session.
• If the total nomination will exceed the technical transportation capacity, the interruptible capacity allocated in the 2° session will be interrupted on a pro-rata basis to the awarded Users, taking into account their re-nominations.
• In case of interruption, the total charge will be applied only on the capacity not interrupted.
Eventual capacity interruption
Nomination for Gas Day DComunication of 1° session
auctions results Outcome of matching
processRenomination for Gas Day
D
13:00 15:00 16:30 – 17.00 17:30 17:30 – 18.00 18:30 19:00 21:30
Allocation results on the Capacity Portal (1/2)
27
On the Capacity Portal of Snam Rete Gas it will be made available a dedicated report through which each User can have access to the following information:
• auction results for each network point and capacity product;• available capacity offered by Snam Rete Gas;• submitted bids of its own company;• awarded bids of its own company;• clearing price and regulated tariff;• capacity timeframe;• eventual amount of interrupted capacity after the renomination process.
Allocation results on the Capacity Portal (2/2)
28
SNAM RETE GAS S.p.A. Cod.: 0020003054
Offer ID +Utente: Daniele Capizzi Deal ID +
Auction ID +Direction Entry - Entry Point interconnected with foreign pipeline +
Point Tarvisio - 35718301 +MENU' Shipper +
Home Valid From - Valid To (Timeframe) 01/06/2012 01/06/2012 + Processi di Conferimento e transazioni Offer Status Not Assigned + + Reportistica Request Status Not assigned + Gestione Anagrafica + Altre funzionalità + Accesso Regime Bilanciamento + Aste di Capacità Execute - Report Storico Assegnazioni AsteLINK UTILI
WWW.SNAMRETEGAS.IT
Auctions Report
Help On Line
Snam Rete Gas S.p.A. 2009 - Partita IVA IT: n. 10238291008
Thank you for the attention
Commercial aspects and applications
http://www.snamretegas.it/en/services/Thermal_Year_2012_2013/Conferimento_Transizione_Capacita_inizio_A_T/conferimenti_capacita_giornaliera_day_ahead.html
Shipper Training Session
San Donato Milanese,
5 & 6 March
05&06.03.2013 | Chart 31
Shipper Training Session
Agenda
1 Welcome
2 Basic Principles of PRISMA
3 Role Definitions
4 Registration
5 Capacity Products
6 Booking Process
6.1 Uniform Auction Process (Day-Ahead)
6.2 Bundled Products Booking Process
05&06.03.2013 | Chart 32
Shipper Training Session
WelcomeThe new platform
PRISMA stands for an integrated European PRImary and Secondary MArket
05&06.03.2013 | Chart 33
Shipper Training Session
Agenda
1 Welcome
2 Basic Principles of PRISMA
3 Role Definitions
4 Registration
5 Capacity Products
6 Booking Process
6.1 Uniform Auction Process (Day-Ahead)
6.2 Bundled Products Booking Process
05&06.03.2013 | Chart 34
Shipper Training Session
Basic principles of PRISMAPRISMA shareholders
Following TSOs are shareholders of PRISMA: Austria: BOG, Gas Connect Austria, TAG Belgium: Fluxys Belgium Denmark: Energinet.dk France: GRTgaz Germany: Bayernets, Gastransport Nord, Fluxys Tenp, Gascade
Gastransport, Gasunie Deutschland Transport Services, GRTgaz Deutschland, Nowega, ONTRAS, Open Grid
Europe, terranets bw, Thyssengas Italy: Snam Rete Gas The Netherlands: Gasunie Transport Services
PRISMA is an open cooperation that allows all European TSOs to participate in the cooperation
05&06.03.2013 | Chart 35
Shipper Training Session
Basic principles of PRISMABackground of the initiative
Foreseeably in 2015, the Network Code on Capacity Allocation Mechanisms (developed by ENTSOG) will come into force for all European countries.
The goal of the platform is an early implementation of the Network Code on CAM The new platform will serve for the booking of primary capacity products on all IPs of
adjacent Entry Exit Systems in accordance with CAM.
- Primary market features for points out of the scope of CAM can be envisaged.
- In addition the platform will be able to handle regional regulatory specifics of different countries (e.g. FCFS).
The partners are also working on the secondary market functionalities to be offered on the new platform.
April 2013, GO-live of initial platform, releases with new features foreseen in the future
Not all of the products will be available right away
Until NC CAM comes into force the platform will also handle regional regulatory specifics of different countries
05&06.03.2013 | Chart 36
Shipper Training Session
Basic principles of PRISMATimeline PRISMA primary
PRISMA creation, New websites & Additional registration information on the platform
2013Jan
Registration start for European TSOs
Feb
Launch of the European Capacity Platform PRISMA& auction start
April
First Yearly Auction on PRSIMA primary*
May
Start of rolling Month-Ahead and Day-Ahead auctions*
2014 2015
Start of Within-Day Auctions**
First Quarterly Auction on PRISMA primary*
June
* Restrictions of TSOs can be seen in separate Interconnection Point Overview that will be available in the download section of the platform** Start of within-day auctions scheduled for 2014 but not fixed yet
05&06.03.2013 | Chart 37
Shipper Training Session
Basic principles of PRISMAApplication of ENTSOG Capacity Allocation Mechanisms (CAM)
CAM applies to all interconnection points between adjacent Entry/Exit Systems (EE IPs)
Standard Products regarding auction calendar:
Annual Yearly (first auction envisaged: May 2013 (extraordinary with some TSOs),
March 2014 (ordinary)
Annual Quarterly (first auction envisaged: June 2013)
Rolling Month-Ahead (first auction envisaged: April 2013)
Rolling Day-ahead (first auction envisaged: April 2013)
Within-Day (foreseen first auction earliest 2014/2015)
Domestic Points can be marketed on the platform on FCFS Basis, if needed
FCFS process part of the platform
Firm and Interruptible Products will be auctioned at EE IPs
Interim period until CAM becomes effective due to national legislation possible
05&06.03.2013 | Chart 38
Shipper Training Session
Basic principles of PRISMAMarketing structure
TSO 1 TSO 2
Capacity Platform
Booking TSO 1
AuctionTSO 3
RegistrationTSO 1, TSO 4
AuctionTSO 1
Booking TSO 4
Shipper A Shipper B
The platform offers two different market models (auctions and first-come-first-served bookings). Additionally, standardized registration, network and contract information services are available.
… TSO N
05&06.03.2013 | Chart 39
Shipper Training Session
Basic principles of PRISMAOverview of the functionalities of PRISMA primary
PRISMA Platform
Execution of auctions
Shipperregistration
BookingOverview of inter-
connection points
Overview of auctions
Display of free
capacities
Processing of auction
results
AuctionsFCFS Bookings
Booking request to
TSO
Display of contract positions
Capacity Bundling,Upgrade,
Surrender
05&06.03.2013 | Chart 40
Shipper Training Session
Agenda
1 Welcome
2 Basic Principles of PRISMA
3 Role Definitions
4 Registration
5 Capacity Products
6 Booking Process
6.1 Uniform Auction Process (Day-Ahead)
6.2 Bundled Products Booking Process
05&06.03.2013 | Chart 41
Shipper Training Session
Role DefinitionsPlatform Roles
PlatformOperator
TSO Shipper Everyone
PlatformAdmin
TSOAdminTSOUser
User Guest (unregistered)
Guest (unregistered) Everyone – No registration and login is required. Guests can look at all the published data as well as at
all publicly available information.Shipper User
Shipper role with the right to trade capacities with the TSOs. A shipper can have multiple users.TSO User
Role for performing non-configurative tasks for the TSOs like activating/deactivating transport customers.
TSO Admin Admin role for the configuration of TSO specific values and the management of documents.
Platform Admin Super user of the platform used for support and operations. This user can not trade.
05&06.03.2013 | Chart 42
Shipper Training Session
Role DefinitionsRole rights matrix
Rights
Guest
Shipper user
Public areaViewing public area/ pages x x
Viewing master data of interconnection points x x
Viewing booking relevant data x x
Viewing auction data x x
Starting a FCFS booking request x x
Bookings and AuctionsBooking via FCFS x
Submitting/ editing bids in auctions x
Saving auctions within the dashboard x
Returning capacity x
Viewing contract positions x
Administration of user accounts and assignmentsEditing (own) shipper data x
Removing (own) shipper user-TSO-assignment x
Editing(own) user data x
Deactivating (own) account x
05&06.03.2013 | Chart 43
Shipper Training Session
Agenda
1 Welcome
2 Basic Principles of PRISMA
3 Role Definitions
4 Registration
5 Capacity Products
6 Booking Process
6.1 Uniform Auction Process (Day-Ahead)
6.2 Bundled Products Booking Process
05&06.03.2013 | Chart 44
Shipper Training Session
RegistrationThe Registration Process
A single user of a shipper can only acquire transport capacities on the
platform and on behalf of their company once they have been activated by
the respective TSO.
Users of a shipper who would like to join the platform have to pass the
registration process.
If a shipper company is not yet registered, the registration of the shipper
takes place with the registration of its first user. A separate registration of
the shipper company is not possible.
If no longer needed, the shippers as well as their users can be deactivated
In order to register to the platform shippers need an EIC Code
After a registration the user receives a personal account and token. The account must not be shared with other company members and the
token is not transferrable to other users!
05&06.03.2013 | Chart 45
Shipper Training Session
RegistrationRegistration facts for the new platform
Does a shipper already registered to TRAC-X primary have to re-register to PRISMA primary?
Customers successfully registered to the former TRAC-X primary do not have to re-register to PRISMA primary
But: shippers need to submit additional information to allow the platform to comply with European standards for shipper identification
EIC Code (substitutes DVGW-Code as primary key) VAT Number IBAN BIC
After logging in with the usual authentication method (user name, token-code) the platform will ask for the additional information.
An EIC Code can be obtained at the Central Office or one of the national offices. For a full list, see http://www.eiccodes.eu
Please note that you will need to enter this information until 15th March 2013, otherwise you will not be able to book capacities on PRISMA primary from 1 April 2013.
05&06.03.2013 | Chart 46
Shipper Training Session
RegistrationProcess model
Shipper
PRISMAprimary
Registration request(online)
Entering Identification
Code
Manual Evaluation
of EIC/other codes
Does the company already exist on
PRISMA?
Entering extended
master data (for a new company)
Adding master data (user-based)
Accepting PRISMA primary GTCs
Selecting TSOs
Forwarding customer
master data to TSO*
Adding shipper data in system
no
TSOChecking mandate /
credit rating
Activation
Activating shipper user for TSO on
PRISMA primary
Providing TSO specific documents (mandate/
credit rating)*
Filling out and sending TSO specific documents
Accepting GTCs of TSO (link to TSO homepage)
* When requested by TSO
05&06.03.2013 | Chart 47
Shipper Training Session
RegistrationUser interface
In case a shipper is not yet registered on PRISMA primary, the registration of the shipper takes place with the registration of the first shipper user.
A separate registration of the shipper company is not possible.
Enter EIC Code
1
2
Information to apply for an EIC Code
05&06.03.2013 | Chart 48
Shipper Training Session
Enter company data1
RegistrationUser interface
Step 1: Check and complete the company data
05&06.03.2013 | Chart 49
Shipper Training Session
RegistrationUser interface
Step 2: Check and completion of the contact persons
Add more contacts for the shipper company (e.g. Dispatching, Billing). It is mandatory to add at least one contact per category.
Enter the details of further contact persons
1
2
3
05&06.03.2013 | Chart 50
Shipper Training Session
RegistrationUser interface
Step 3: Enter the user details
Enter user details
1
2
05&06.03.2013 | Chart 51
Shipper Training Session
RegistrationUser interface
Step 4: Select one or more TSOs
Alternative 1: Select all TSOs
Alternative 2: Select individual TSOs
SNAM Rete Gas S.p.A.
For a successful registration the GTCs of the selected TSOs need to be accepted
05&06.03.2013 | Chart 52
Shipper Training Session
RegistrationUser interface
Step 5: Check your entered data and enter national identifiers
Enter national identifier codes, e.g. DVGW code (depends on the TSOs you selected).
2
Checking the entered information
1
Snam Rete Gas
05&06.03.2013 | Chart 53
Shipper Training Session
RegistrationUser interface
After the registration you will receive a registration confirmation by PRISMA You will be informed about more required documents for the TSOs
05&06.03.2013 | Chart 54
Shipper Training Session
RegistrationFinalise registration & following steps
The shipper user sends all required documents to the TSO (set by each TSO: e.g. mandate/ solvency check).
1
2
3
Checking mandate /
credit rating
Filling out and sending TSO specific documents
Activation
Activating shipper user for TSO on PRISMA primary
… 1
2
3
The TSO checks the documents and activates the shipper user.
With activation by the first TSO the shipper will be sent a token (electronic PIN generator) with which the user can log onto PRISMA primary.
The shipper user is now able to trade on the primary capacity platform.
05&06.03.2013 | Chart 55
Shipper Training Session
Agenda
1 Welcome
2 Basic Principles of PRISMA
3 Role Definitions
4 Registration
5 Capacity Products
6 Auction Booking Process
6.1 Uniform Auction Process (Day-Ahead))
6.2 Bundled Products Booking Process
05&06.03.2013 | Chart 56
Shipper Training Session
Capacity ProductsGeneral
There are yearly, quarterly, month-ahead and day-ahead products. Where possible capacity will be bundled. Firm and interruptible capacity will be auctioned Interruptible capacity can be converted to firm capacity Return/surrender of firm capacity is possible*
* At the moment not relevant in the Italian market
05&06.03.2013 | Chart 57
Shipper Training Session
Capacity ProductsGeneral
All products are auctioned at predefined (different) points in time that can be found in the auction calendar.
The publication of the specific products which will be auctioned takes place in due time before the auction starts (1 month for annual products, 1 week for quarterly and monthly products, no advance publication for day-ahead products).
There are two different algorithms for actions: the ascending clock auction algorithm for yearly, quarterly, and month-ahead products and the uniform-price algorithm for day-ahead products.
The ascending clock auction takes place in at least one bidding round (is the demand in the first bidding round higher than the capacity offered more bidding rounds will be used).
The duration of an ascending clock bidding round is one hour (exception: duration of the first bidding round is three hours)
The number of bidding rounds in an ascending clock auction that are needed until an allocation is possible depends on the course of the auction.
Day-ahead capacity is auctioned in a single bidding round via the uniform price algorithm
Interruptible capacity auctions are optional until NC CAM comes into force and are until then subject to national variations
05&06.03.2013 | Chart 58
Shipper Training Session
Capacity ProductsAuction types
Monthly, Quarterly and Yearly products are auctioned by using an ascending-clock auctioning process
Auctioning takes place in (multiple) bidding rounds.
In each bidding round a bid for a certain quantity of capacity at a given price is submitted.
The price steps are determined by the platform.
Day-Ahead products are auctioned in a process using the uniform-price algorithm
There is only one bidding round.
A shipper can submit up to 10 bids per auction.
The platform evaluates all bids in a descending-order according to their price.
The lowest price of all awarded bids is considered the clearing price.
05&06.03.2013 | Chart 59
Shipper Training Session
Capacity ProductsAuction Times Overview
Product Frequency of auctions
Number of products per
auction
Start of the auction
Bidding round Publication amount of capacity
Publication of allocation results to
individuals
Auction algorithm
Auction Calendar for firm capacity products
Year
annual
Y1 to Y151st Monday
of March First round 3h:09:00-12:00
Then 1h:13:00-14:00 15:00-16:00 17:00-18:00
1 month before the auction
starts*no later than
next business day *
Ascending Clock auctionQuarter Q1 to Q4
1st Mondayof June 1 week before
the auction starts *Month monthly M1 3rd Monday
Day daily D1 16:30 16:30-17:00 * 16:30no later than 30 minutes *
Uniform Price auction
Auction Calendar for interruptible capacity products
Y,Q,M see above see above
The day after closure of
respective firm product 09:00.
see above
The day after closure of
respective firm product (7:00)
no later than next business
day *
Ascending Clock auction
Day daily D1 17:30 17:30-18:00At the time the auction
starts
no later than 30 minutes *
Uniform Price auction
*09:00 *after closing of the bidding round
Time zone for all times: CE(S)T – Central European (Summer) Time
05&06.03.2013 | Chart 60
Shipper Training Session
Capacity ProductsAuction Calendar for Day-Ahead Products
Marketing of day-ahead D+1 (e.g. Tue for Wed)
constantly
D for D+1
t
MarFeb Apr May
Parameter Calendar entry Valid for:
Publication FIRM: On the day of the auction until 16:30 CE(S)T
INTERRUPTIBLE: On the day of the auction until 17:30 CE(S)T
D+1
Start of auction FIRM: Recurring daily 16:30 CE(S)T INTERRUPTIBLE: If offered, daily 17:30 CE(S)T
D+1
First auction 01 April 2013 02 April 2013
05&06.03.2013 | Chart 61
Shipper Training Session
Capacity ProductsBidding rounds
Day 1:
09:00 – 12:001st bidding round
12:00 – 13:00processing & publishing
13:00 – 14:002nd bidding round
14:00 – 15:00processing & publishing
[…]
17:00 – 18:00 4th bidding round
As of day 2:
09:00 – 10:005th bidding round
10:00 – 11.00 processing & publishing
[…]
17:00 – 18:00x bidding round
Yearly, quarterly and monthly products Day-Ahead products
Single-step approach (uniform price auction algorithm)
Start 16:30 Bid-list allowing max. 10 additive
bids „Fill-or-kill“ option subject to
minimum amount condition Pro-rata allocation in case of
equally-ranked bids Price increment € 0,00001 Same price for all successful
bidders
05&06.03.2013 | Chart 62
Shipper Training Session
Capacity ProductsAuction calendar
The auction calendar can be found in the customer centre The auction calendar gives an overview of the auction starts and the auction
publication dates as well as the transport duration of the products
The overview of the different dates can be filtered by products
05&06.03.2013 | Chart 63
Shipper Training Session
Agenda
1 Welcome
2 Basic Principles of PRISMA
3 Role Definitions
4 Registration
5 Capacity Products
6 Booking Process
6.1 Uniform Auction Process (Day-Ahead)
6.2 Bundled Products Booking Process
05&06.03.2013 | Chart 64
Shipper Training Session
Booking ProcessOptions for booking capacity
Two possibilities to book capacities on PRISMA primary: At Interconnection Points (Market area interconnection points and Cross-Border
points) firm capacity is marketed via auctions. Interruptible capacity will, until NC CAM comes into force, only be offered by
some TSOs via auctions. The German TSOs still offer to book capacities according to the “first-come-first-
served“ principle (FCFS) at points to end consumers, production and storage facilities (Grid Access Points). Furthermore, you can book interruptible capacities according to the FCFS principle at German Interconnection Points.
Different possibilities to start one of the booking processes: Auction overview : From a list of all available auctions you can directly access
the screen for submitting a bid for a certain auction (booking process I)
Master data browser for interconnection points: see next slide
05&06.03.2013 | Chart 65
Shipper Training Session
Booking Process
The master data browser can be found in the section „Network Information“
Search for network points according to certain criteria
Displays the different possible actions that are available at a specific network point
Master data browser for interconnection points
05&06.03.2013 | Chart 66
Shipper Training Session
Booking ProcessMaster data browser for interconnection points
When you select an interconnection point all details of this point are displayed. In case of a bundled interconnection point a link will guide you to the two involved
unbundled interconnection points.
Snam Rete Gas
Tarvisio
Entry
Snam Rete Gas
Italy
0
05&06.03.2013 | Chart 50
05&06.03.2013 | Chart 67
Shipper Training Session
Agenda
1 Welcome
2 Basic Principles of PRISMA
3 Role Definitions
4 Registration
5 Capacity Products
6 Booking Process
6.1 Uniform Auction Process (Day-Ahead)
6.2 Bundled Products Booking Process
05&06.03.2013 | Chart 68
Shipper Training Session
Uniform Auction Process (Day-Ahead)Process map
Evaluate available capacity
Design standard products
Transfer to platform
Start auction
Pla
tfor
mT
SO
Submit a bid
Evaluate bidding round
Send result to TSO and
Shipper
Publish result
Book capacity and setup contract
Receive confirmation
Shi
pper
05&06.03.2013 | Chart 69
Shipper Training Session
Uniform Auction Process (Day-Ahead)Day-Ahead bidding process
A2
Placing bids
A1
amount
surcharge
amount
B1
B2
surcharge
B3
Bidder A Bidder BAvailable capacity
Available capacity
Price component of
a bid
Volume component of
a bid
05&06.03.2013 | Chart 70
Shipper Training Session
Uniform Auction Process (Day-Ahead)Day-Ahead bidding process
A2
Placing bids
A1
amount
surcharge
amount
B1
B2
surcharge
B3
Bidder A Bidder BAvailable capacity
Available capacity
Minimum amounts
Price component of
a bid
Volume component of
a bid
05&06.03.2013 | Chart 71
Shipper Training Session
Uniform Auction Process (Day-Ahead)Day-Ahead bidding process
A2
Placing bids
A1
amount
surcharge
amount
B1
B2
surcharge
B3
Bidder A Bidder BAvailable capacity
Available capacity
A1
amount
Available capacity
B1
B2A2
surcharge
B3
Ranking according to price components
05&06.03.2013 | Chart 72
Shipper Training Session
Uniform Auction Process (Day-Ahead)Day-Ahead bidding process
Determination of the Clearing Price
A1
Available capacity
B1
B2A2
surcharge
B3
Example 1: Fill-or-kill: „fill“
05&06.03.2013 | Chart 73
Shipper Training Session
Uniform Auction Process (Day-Ahead)Day-Ahead bidding process
Determination of the Clearing Price
A1
amount
Available capacity
B1
B2A2
surcharge
B3
A1
amount
B1
B2A2
surcharge
B3
Available capacity
X B2 = equilibrium bid Minimum amount < rest B2 filled
B3: price component < clearing price No consideration of B3
Example 1: Fill-or-kill: „fill“
05&06.03.2013 | Chart 74
Shipper Training Session
Uniform Auction Process (Day-Ahead)Day-Ahead bidding process
Determination of the Clearing Price
A1
amount
Available capacity
B1
B2A2
surcharge
B3
A1
amount
B1
B2A2
surcharge
B3
Available capacity
X B2 = equilibrium bid Minimum amount < rest B2 filled
B3: price component < clearing price No consideration of B3
Example 1: Fill-or-kill: „fill“
Clearing price = price component of B2
05&06.03.2013 | Chart 75
Shipper Training Session
Uniform Auction Process (Day-Ahead)Day-Ahead bidding process
Determination of the Clearing Price
A1
amount
Available capacity
B1
B2A2
surcharge
B3
Example 2: Fill-or-kill: „kill“
05&06.03.2013 | Chart 76
Shipper Training Session
Uniform Auction Process (Day-Ahead)Day-Ahead bidding process
Determination of the Clearing Price
A1
amount
Available capacity
B1
B2A2
surcharge
B3
A1
amount
B1
B2A2
surcharge
B3
B3 = equilibrium bid Full allocation
B2: Minimum amount > rest B2 killed
Example 2: Fill-or-kill: „kill“
X
Available capacity
05&06.03.2013 | Chart 77
Shipper Training Session
Uniform Auction Process (Day-Ahead)Day-Ahead bidding process
Determination of the Clearing Price
A1
amount
Available capacity
B1
B2A2
surcharge
B3
A1
amount
B1
B2A2
surcharge
B3
B3 = equilibrium bid Full allocation
B2: Minimum amount > rest B2 killed
Example 2: Fill-or-kill: „kill“
X
Clearing price = price component of B3
Available capacity
05&06.03.2013 | Chart 78
Shipper Training Session
Uniform Auction Process (Day-Ahead)Day-Ahead bidding process
Determination of the Clearing Price
A1
amount
Available capacity
B1
B2
A2
surcharge
A3
Example 3: Pro-rata allocation between equally ranked bids
05&06.03.2013 | Chart 79
Shipper Training Session
Uniform Auction Process (Day-Ahead)Day-Ahead bidding process
Determination of the Clearing Price
A1
amount
Available capacity
B1
B2
A2
surcharge
A3
A1
amount
B1
B2
A2
surcharge
A3
Pro-rata allocation between B2 and A3 as long as minimum amount condition is fulfilled for both bids
Example 3: Pro-rata allocation between equally ranked bids
Available capacity
05&06.03.2013 | Chart 80
Shipper Training Session
Uniform Auction Process (Day-Ahead)Day-Ahead bidding process
Determination of the Clearing Price
A1
amount
Available capacity
B1
B2
A2
surcharge
A3
A1
amount
B1
B2
A2
surcharge
A3
Pro-rata allocation between B2 and A3 as long as minimum amount condition is fulfilled for both bids
Example 3: Pro-rata allocation between equally ranked bids
Clearing price = price component of B2 or A3 respectively
Available capacity
05&06.03.2013 | Chart 81
Shipper Training Session
Uniform Auction Process (Day-Ahead)Day-Ahead bidding process
Determining the Clearing Price
A1
amount
B1
tariff / surcharge
Clearing price in case of no intersection between demand curve and available capacity
Available capacity
Clearing price = starting price
In general, the market clearing price equals the price component of the lowest successful bid
In case no intersection between demand curve and supply curve (available capacity) exists, the starting price of the respective auction (e.g. regulated tariff) will be considered as the clearing price
05&06.03.2013 | Chart 82
Shipper Training Session
Uniform Auction Process (Day-Ahead)Details of a Day-Ahead auction
For day-ahead auctions a simplified auctioning method is used. This means that there is only one bidding round in which you enter the desired
capacity that you are prepared to buy up to a certain price. It is possible to place up to 10 bids per shipper for a day-ahead auction.
Enter your bid
Enter your maximum capacity amount
Enter your minimum capacity amount
05&06.03.2013 | Chart 83
Shipper Training Session
Uniform Auction Process (Day-Ahead)Comfort Function for Day-Ahead auctions
By using the so-called day-ahead comfort function you have the possibility to submit bids for day-ahead auctions in advance.
The comfort function can be started from the auction details screen or from “Comfort bids” in the “My PRISMA primary” section
Creating a new comfort bid in advance
05&06.03.2013 | Chart 84
Shipper Training Session
Uniform Auction Process (Day-Ahead)Comfort Function for Day-Ahead auctions
When using the comfort function for day-ahead auctions you have to select a time period during which you want to automatically use your defined bid for certain day-ahead products.
Entering a time period in which a bid is placed automatically for a day-ahead product
05&06.03.2013 | Chart 85
Shipper Training Session
Agenda
1 Welcome
2 Basic Principles of PRISMA
3 Role Definitions
4 Registration
5 Capacity Products
6 Booking Process
6.1 Uniform Auction Process (Day-Ahead)
6.2 Booking Process for Bundled Products
05&06.03.2013 | Chart 86
Shipper Training Session
Booking Process for Bundled ProductsBundled capacity process
[ ]
PR
ISM
AT
SO
1S
hip
per
* Bilateral coordination
between TSOs
Upload raw data or
standard product
Create & match bundled and unbundled products
Assign products to auction
roundsStart auction
Send result to shipper and
TSO
* Bilateral coordination
between TSOs
Upload raw data or
standard product
Receive auction result
Bookcapacity
Bookcapacity
Setupcontract
Setupcontract
Receive contract from
TSO 1
Receive contract from
TSO 2
TS
O 2
05&06.03.2013 | Chart 87
Shipper Training Session
Booking Process for Bundled ProductsBundled capacity: tariffing
The payable price after auction consists of:
Regulated capacity
tariff TSO 1
+ Additional fees TSO1
+ Regulated capacity
tariff TSO2
+ Additional fees TSO2
= Starting price
+ Auction premium
(Surcharge through
price steps)
= Payable price for
shipper
division factor between TSO1 & TSO2
(default 50% / 50%)
information from TSOs
05&06.03.2013 | Chart 88
Shipper Training Session
Booking Process for Bundled ProductsAuction Details
The bundling of capacities takes place at all possible interconnection points In case of a bundled auction you will be informed about it in various places The way a bundled product is displayed is different that of an unbundled product
2 interconnection points, market areas, TSOs, capacity types, prices etc. are shown
05&06.03.2013 | Chart 89
Shipper Training Session
Booking Process for Bundled ProductsSubmitting a bid
When submitting a bid for a bundled product you have to accept the GTCs for each TSO and enter (optionally) a balancing group / portfolio code for each TSO.
Enter a balancing group for TSO 1 (depending on the TSO optional or mandatory)
Enter a balancing group for TSO 2 (depending on the TSO optional or mandatory)
Accept the GTCs of TSO1 & TSO 2
05&06.03.2013 | Chart 90
Shipper Training Session
ContactContact information
Information before registering on the platform
PRISMA Hotline Tel.: +49 341 699 2990 66 [email protected]
For technical issues after registration
User Help Desk Tel.: +49 341 699 2990 69 [email protected]
For TSO related issues Please call your individual TSO contact
Thank you!