I-SEM Business Liaison Group Registration · registration requirements • Clarify timelines, key dates and activities in the Transitional ... 13:15 – 13:30 FTR Registration Paul

19th October 2016

I-SEM Business Liaison Group Registration

1

• Provide an overview of the I-SEM markets and transitional registration requirements

• Clarify timelines, key dates and activities in the Transitional Registration Plan

• Detail by market, an understanding of how registration will work − Process, Timelines and Key Dates

− Documentation Required

− Considerations

− Next Steps

2

Objectives

3

Ground Rules

Emphasis on How to register, not Why of Design

Focus on Transitional Registration not on Market Processes

•

Stay on Track

• Rules Working Groups and TSC/CMC consultations determine why • Interested in how we meet the requirements of the Codes and get to participate • Don’t plan to debate the rules!

• How to register, not how to trade, settle, etc. • Training in the future on market processes and systems

• We have a full agenda so need to ensure we stay on track to get a complete overview of transitional registration processes

• Rabbit holes or more detailed discussions will be parked and taken up either at the end of the day, or at a later BLG or communication – time is of the essence!

4

Glossary of Abbreviations Abbreviation Definition AoLR Agent of Last Resort

CCC Coordinated Capacity Calculation

CCQT Communication Channel Quality Testing

CER Commission for Energy Regulation (Ireland)

CFD Contract for Difference

CM Capacity Market

CMC Capacity Market Code

DAM Day Ahead Market

DCP Direct Clearing Participant

DSU Demand Side Unit

FTR Financial Transmission Rights

IDM Intraday Market

I-SEM Integrated Single Electricity Market

JAO Joint Allocation Office

KYC Know Your Customer

MDP Meter Data Provider

MO Market Operator

NCM Non-Clearing Member

Abbreviation Definition NEMO Nominated Electricity Market Operator

PAU Party Administrative User

PN Physical Notifications

PT Participant

RAs Regulatory Authorities

SEMO Single Electricity Market Operator

SONI System Operator Northern Ireland

STL Settlement

TOD Technical Offer Data

TRP Transitional Registration Plan

TSC Trading and Settlement Code

TSO Transmission System Operator

UR Utility Regulator (Northern Ireland)

5

Agenda

Timing Topic Speakers

10:30 – 11:00 Introduction to I-SEM Nigel Thomson

11:00 – 12:00 Transitional Registration Overview Nigel Thomson

12:00 – 12:45 NEMO (Exchange/ECC) Registration Michael Atcheson/ Susann Just-Marx

12:45 – 13:15 Lunch

13:15 – 13:30 FTR Registration Paul McGuckin

13:30 – 14:15 Balancing Market Registration Nigel Thomson

14:15 – 14:30 AoLR Service Registration Nigel Thomson

14:30 – 15:00 Capacity Registration Nigel Thomson

15:00 – 16:00 Wrap Up/Questions All

The I-SEM Markets

Capacity

Balancing &

Imbalance

Settlement

Intra-Day

Day-Ahead

NEM

O

AoLR

FOR

WA

RD

S

6

Financial

Transmission Rights

(Cross-Border)

Forwards

(Within Zone)

A whirlwind tour

of the I-SEM Markets

The I-SEM Markets – Forwards (Within Zone)

Capacity

Balancing &

Imbalance

Settlement

Intra-Day

Day-Ahead

Financial

Transmission Rights

(Cross-Border)

Forwards

(Within Zone)

NEM

O

AoLR

• Local Contracts for Difference (CfDs)

• Financial, not physical positions

• Likely to purchase through brokers

• Generators receive certainty on future revenues

• Supplier receive certainty on costs in determining tariffs to customers

• Strike Price > Spot Price = Suppliers pay back difference to Generators

• Strike Price < Spot Price = Generators pay back difference to Suppliers

• RAs decision on liquidity promotion measures to be published in the coming months

FOR

WA

RD

S

7

The I-SEM Markets – FTRs (Cross Border)

Capacity

Balancing &

Imbalance

Settlement

Intra-Day

Day-Ahead

NEM

O

AoLR

• Cross border Financial, not physical scheduling

• Participants purchase financial transmission rights which return the profits from trade across the interconnector when it is congested (i.e. the loss adjusted price difference between SEM/GB)

• Provides hedge against local Day Ahead price via the adjacent market

• Annual, seasonal, quarterly and monthly auctions planned

FOR

WA

RD

S

8

Financial

Transmission Rights

(Cross-Border)

Forwards

(Within Zone)

The I-SEM Markets – NEMO (DAM)

Capacity

Balancing &

Imbalance

Settlement

Intra-Day

Day-Ahead

NEM

O

AoLR

• European-wide day-ahead auction.

• Limited only by interconnector capacities

• Results are firm commitment for generation or consumption

• Basis for physical scheduling of units and interconnector flows

• Daily Auction (D-1 11:00)

• Unit based bidding and settlement

• Supply and generation bid

FOR

WA

RD

S

9

Financial

Transmission Rights

(Cross-Border)

Forwards

(Within Zone)

The I-SEM Markets – NEMO (IDM)

Capacity

Balancing &

Imbalance

Settlement

Intra-Day

Day-Ahead

NEM

O

AoLR

• 3x Regional auctions (D-1 15:30, D 08:00 and D 14:00) + continuous local market

• Allows Participants to adjust positions closer to the delivery and assists in balance responsibility

• Results are firm commitment for generation or consumption

• Basis for modifications to the physical scheduling of units and interconnector flows from the DAM


• Supply and generation bid

FOR

WA

RD

S

10

Financial

Transmission Rights

(Cross-Border)

Forwards

(Within Zone)

The I-SEM Markets – AoLR Service

Capacity

Balancing &

Imbalance

Settlement

Intra-Day

Day-Ahead

NEM

O

• Agent of Last Resort Service

• Only relevant for:

a) Renewables; or,

b) De minimus (<10MW)

• Provides bids in the DAM and IDM auctions

• Submits Physical Nominations (PN) for units to TSOs

• Participant must still be registered with NEMO directly for settlement

FOR

WA

RD

S

11

Financial

Transmission Rights

(Cross-Border)

Forwards

(Within Zone)

AoLR

The I-SEM Markets – Balancing and Imbalance Settlement

Capacity

Balancing &

Imbalance

Settlement

Intra-Day

Day-Ahead

NEM

O

AoLR

• Mandatory participation

• PNs submitted are starting point for dispatch

• Offers by Participants to meet energy imbalance and balancing actions

• Imbalance Price determination

• Settlement of Participant energy imbalances and balancing actions (both energy and non- energy)


FOR

WA

RD

S

12

Financial

Transmission Rights

(Cross-Border)

Forwards

(Within Zone)

The I-SEM Markets – Capacity

Capacity

Balancing &

Imbalance

Settlement

Intra-Day

Day-Ahead

NEM

O

AoLR

• Provides capacity providers with stable revenue stream to support investment

• Protects Suppliers from very high prices

• Funded by Suppliers

• Capacity Providers are: – Generators, Demand Side Units and

Interconnectors – Expected to provide capacity in times of

‘system stress’ by having contracts in the DAM, IDM and Balancing Market

• Auctions held T-4 through to T-1

• Unit based bidding

FOR

WA

RD

S

13

Financial

Transmission Rights

(Cross-Border)

Forwards

(Within Zone)

Change from SEM to I-SEM

Capacity

Balancing &

Imbalance

Settlement

Intra-Day

Day-Ahead

Capacity

Forwards (OTC)

Ex-Post

Energy Market

NEM

O

Ao

LR

SEM - GB I-SEM - GB

& NG I-SEM & NG

I-SEM

I-SEM

I-SEM

FOR

WA

RD

S

* Continuous cross border planned for a future date TBC

Physical

Transmission Rights

I-SEM

Financial

Transmission Rights

(Cross-Border)

Forwards

(Within Zone)

Financial trading within zone Financial trading within zone

Cross-border physical rights Cross-border financial rights

Local day-ahead auction

Generator only bids

EU coupled day-ahead auction

Supplier & generator bidding

Single local intra-day auction

Generator only bids

Single ex-post energy

market

Not applicable

(Ex-post perfect hindsight)

Settled with Energy Market

Regional cross border auctions

and continuous local* intra-day

trading

Supplier & generator bidding

“Last hour” balancing market

INC & DEC pricing

Balance responsibility of

participants

[ Imbalance = contract +

balancing – meter ]

Reliability Option

SEM Registration Data in I-SEM

Capacity

Balancing &

Imbalance

Settlement

Intra-Day

Day-Ahead

NEM

O

AoLR

Capacity

Ex-Post

Energy Market Similar Data (Party, Participant, Unit)

Balancing Data, TOD

Similar Data (Party, Participant)

FOR

WA

RD

S Forwards (OTC)

Physical

Transmission Rights

I-SEM

15

Financial

Transmission Rights

(Cross-Border)

Forwards

(Within Zone)

Similar Data

Similar Data

16

Agenda





12:45 – 13:15 Lunch






Who to Register with?

Capacity

Balancing &

Imbalance

Settlement

Intra-Day

Day-Ahead

NEM

O

AoLR

17

I-SEM Registration Team


I-SEM Registration

Team

Exchange Clearing House

FOR

WA

RD

S

Financial

Transmission Rights

(Cross-Border)

Forwards

(Within Zone)

TBC

Market Organisation Contact Name Email

Jean-Pierrre Miura (Policy Development)

Email: [email protected] Phone: +44 28 9031 1575 Web: www.uregni.gov.uk

JAO Helpdesk

Email: [email protected] Phone: +352 27 62 38 01 Web: http://www.jao.eu/support/resourcecenter/overview


Claire Breslin Email: [email protected] Phone: +353 1 23 70163 Web: http://www.sem-o.com/ISEM/Pages/Home.aspx

Anke Voigt Email: [email protected] Phone: +49 341 24680-155 Web: www.ecc.de


Claire Breslin

Email: [email protected] Phone: +353 1 23 70163 Web: http://www.sem-o.com/ISEM/Pages/Home.aspx


Claire Breslin



Claire Breslin


Key Contacts

Capacity

Balancing &

Imbalance

Settlement

NEMO Exchange

AoLR

18

NEMO Clearing House

Financial

Transmission Rights

(Cross-Border)

Forwards

(Within Zone)

18

mailto:[email protected]

http://www.uregni.gov.uk/


http://www.jao.eu/support/resourcecenter/overview






http://www.sem-o.com/ISEM/Pages/Home.aspx




http://www.ecc.de/

























What is the Transitional Registration Plan?

19

• Defines the plan for the transition from the SEM to I-SEM arrangements in terms of the registration process

• How, When and What is needed to complete registration for I-SEM markets given the start point of SEM participation

Considerations in forming the TRP

20

• Multiple markets (DAM, IDM, Balancing, Capacity)

• New Service (AoLR)

• Different organisations involved in provision of services e.g. SEMO, EirGrid/SONI Exchange, ECC, TSOs, JAO and local Forwards

• A revised entity model for the Balancing Market and different entity setups for different markets

• Transferred registration data e.g. Balancing Market

• New registration data required e.g. Capacity Auction, NEMO, AoLR, new unit types, Balancing Market

• Additional or new requirements e.g. Capacity qualification process

• Existing agreements needing to be resigned e.g. TSC/CMC Framework Agreements

• The Capacity Auction being prior to I-SEM Go-Live and after the start of Market Trial

Considerations in forming the TRP

21

Conclusion:

….but we will try to find efficiencies where possible!

Not a simple “transfer” from SEM to I-SEM

22

General Registration Process (for each Market)

Sign up

to the Market’s Code

Register Units to participate in

Market

• e.g. TSC, CMC, NEMO Rules, AoLR agreement

• Legal document agreeing to abide by Rules of the market/service. Signed by authorised company representative

• For each market separately (Balancing, Capacity, NEMO) and the AoLR Service

• For Balancing and Capacity need to register a Participant if no existing Participant for the jurisdiction

• Technical data (Unit information, Tradings Sites, etc)

Timelines and Key Dates

23

• Key Milestones 1) BLG (19th October 2017)

2) FTR First Auction (17th April 2017)

3) Market Trial Start (1st June 2017) – continues for 4 months

4) Capacity First Auction (31st July 2017)

5) I-SEM Main Go-Live (1st Oct 2017)

• Start dates don’t align nicely. FTRs, then Market Trial, then Capacity then I-SEM Go-Live

• Need to have relevant registration/qualification completed before the relevant Auction/Go-Live

24

Plan Narrative (General)

FTR Balancing NEMO AoLR Capacity

• Details covered by Section 4 of the Registration BLG Presentation

• Key Date being 17th April 2017 for first Auction

25

Plan Narrative (FTR)


• Balancing Market registration needs to start first – As the unit in the balancing market forms the key link between all

markets and services

– Also, significant amount of technical data needs validation and new data needed for I-SEM

• Four main activities: 1) Validation and update of the BAL Registration Data (Nov 16 - Jan 17)

2) Submission of Supporting Information (Jan 17 – March 17)

3) Signing of Framework Agreements (March 17)

4) Final Registration Requirements Complete (June 17 to Sept 17)

• Validated and approved BAL registration data used as the basis for Market Trial and registration of other markets/services

26

Plan Narrative (Balancing)


• NEMO covers the DAM/IDM markets

• Need balancing unit from balancing market as input to unit based bidding

• Dialogue with I-SEM Registration Team and ECC can start now!

• Two main activities: 1) EirGrid/SONI Exchange registration for trading 2) ECC registration for settlement and clearing Both of above in timelines either:

a) Ready for Market Trial b) Only ready for Go-Live, but not Market Trial

• Would advise participants to aim be ready for market trial

• Need ‘Know Your Customer’ process started before end of year

• Documentation for Trading and ECC needed by end of Feb, to allow time to validate and approve before Market Trial

– Not assured of involvement in DAM/IDM for market trial if received later

• Final deadlines for submission of applications (June – new member, July – existing member). But don’t leave it to the last minute please!

• Don’t under-estimate the time required to complete this process. Please start early

27

Plan Narrative (NEMO)


• Need to register for NEMO Exchange and ECC first, or at least be started with this process

• Registration starts later than markets as need to have NEMO part underway and this registration is more about signing up for a service than registering for a market

• Then can start register for AoLR Service

• Forms available at end of February 2017

• 18th April timeframe for submission of applications (for inclusion in market trail)

28

Transition Plan Narrative (AoLR)


• Capacity Registration/Qualification involves 1. Accession to the CMC 2. Registration of Units 3. Qualification of Units

• Different process to existing SEM capacity registration as involves more stringent registration and qualification process. Including auction qualification for each capacity year

• Links to Party, Participant and Unit from the Balancing Market registration • CMC Approval due 8th March 2017 • New CMC Framework Agreement to be signed by existing participants to TSC

– In tandem with TSC Framework Agreement end of March 2017, or – New Party application in by end of March 2017

• New Form of Authority – Even for existing TSC Participants with TSC form of authority

• Unit Registration/Qualification application by end of March 2017 – Based on balancing market party, participant, unit setup – Plus evidence of qualification criteria being met

• Mock Auctions – mid to late July 2017 • Auction Date - End July 2017 (Note: before I-SEM Go-Live date)

29

Transition Plan Narrative (Capacity)


• Milestones in red including deadlines for submission

• Final Registration Requirements met during Market Trial – e.g putting collateral in place

• Registration Lockdown – Looking at ways to mitigate the risks associated with such a large ‘big

bang’ transition from SEM to I-SEM, and given the complexities and interdependencies

– One mitigation measure is to limit the registration change for a period of time around go-live.

– No ‘structural’ entity changes allowed during this period e.g. new Parties, Participants, Units, changes in meter data provider

– Provides stability for the unscripted phase of market trial – Avoid changes impacting on the operation of the market at Go-Live – Proposed as a period from 1st August to 4 weeks after I-SEM Go-Live.

30

Plan Narrative (General)


• Allows time for Participants to consider entity structure and setup ahead of registration (Nov 16 to Jan 17)

• Front loads larger data requirements for Balancing with supporting documentation coming later

• TSC (BAL) data finalised prior to CMC unit registration – Provides basis for CMC registration

• Staggered nature of registrations for different markets – Based on priorities and availability of rules – Bal/CMC/NEMO/AoLR

• Accommodates CM first auction before I-SEM Go-Live

• Avoids dual registration process for Market Trial and then Go-Live

• Registration data available for Market Trial

• Registration activities not necessary for Market Trial occur later – e.g. collateral in place

• Distributes workload for Participants and registration teams more evenly – Avoids registration applications/approvals needing to be all provided at once

31

Features of the Plan

32

Key Information Issue Dates

Issue Date Market/ Service

Application Forms/Information Issued

Available Now

NEMO (ECC) KYC Application Form

18/11/2016 Balancing Existing Entity Model Mapping to I-SEM Issued

17/01/2017 Balancing Supporting Information Requirements Issued

17/01/2017 NEMO Exchange ECC Capacity

Application Forms Issued

17/02/2017 Capacity Auction Information Pack Issued

28/02/2017 AoLR Application Forms Issued

Deadline Date

Market/ Service

Submission

31/12/2017 NEMO KYC Registration of Interest

31/01/2017 Balancing BAL Registration Data

17/03/2017 Balancing BAL Supporting Info

28/02/2017 NEMO NEMO Trading Application

28/02/2017 NEMO ECC KYC, New Member, Existing Member Doc Deadline (Market Trial)

31/03/2017 Balancing Capacity

TSC and CMC Party Application (if required)

31/03/2017 Balancing Capacity

TSC and CMC Framework Agreement Signed (Existing Parties)

31/03/2017 Capacity CMC Unit Application

18/04/2017 AoLR AOLR Application

30/06/2017 NEMO ECC KYC & New Member Doc Deadline (Go-Live)

31/08/2017 NEMO ECC Existing Member Doc Deadline (Go-Live)

Submission Deadlines

34

Transition Registration Types

Registration Type Registration Approach

Existing SEM Participant (In SEM already)

• Transitional registration process • Submission deadlines apply • Inclusion in Market Trial and for I-SEM Go-

Live

New SEM Participant (Will be effective after Submission Deadlines but prior to I-SEM Go-Live)

• Enduring registration process • Must meet SEM and I-SEM requirements to

obtain effective date • No guarantee of inclusion in Market Trial • Will be included for Go-Live • Registration Lockdown Period applies

New I-SEM Participant (Not in SEM at all)

• Enduring registration process • Registration effective after I-SEM Go-Live • Registration Lockdown Period applies

35

Fee Determination Process (Registration & Operation)

• Costs need determination first – Rules and Implementation Design still being finalised

– Contracts with vendors and service providers being finalised

– Operating Model needs finalising

• Tariffs can then be determined

• Fees will be subject to approval by RAs

• Likely to be finalised in Summer 2017

36

Market Approach

Balancing No transitional registration fee1 , costs socialised in MO charges 2017/2018

Capacity No transitional registration fee1 , costs socialised in MO or TSO charges 2017/2018

NEMO Exchange

Registration fee (dependent on final fee structure)

ECC See price list

AoLR Service setup fee (dependent on final fee structure)

Note 1 These arrangements will apply to Parties and Units which are in the SEM already, or will be

effective in the SEM before the I-SEM Go-Live . Parties or Units who plan to become effective after the I-SEM Go-Live date will be charged an explicit registration fee based on the approved registration fee structure. If this approved fee structure is not available at the time of a new Party/Unit’s application then the transitional arrangements will apply for fees.

Transition Registration Fees

https://www.ecc.de/ecc-en/about-ecc/rules/price-list

37

38

Agenda





12:45 – 13:15 Lunch

13:15 – 13:30 FTR Registration Michael Carrington





Who to Register with?

Capacity

Balancing &

Imbalance

Settlement

Intra-Day

Day-Ahead

NEM

O

AoLR

FOR

WA

RD

S

Financial

Transmission Rights

(Cross-Border)

Forwards

(Within Zone)

39



I-SEM Registration

Team

Exchange Clearing House

TBC

40

Timelines (NEMO)

• NEMO plan has activities split between EirGrid/SONI Exchange (for trading) and ECC (for settlement and clearing)

• ECC related activities include: • ‘Know Your Customer’ (KYC) forms available now • Need participants to download and start preparing forms now • Talk to ECC contacts if any questions • Request KYC registration of interest before end of 2016. i.e. submit KYC form with as much detail as

possible. To start the KYC process • KYC process does take some time to complete so start early

• Remaining ECC forms and Exchange forms available 17th Jan 2017 to start remainder of application requirements

• Opportunity from Nov 16 to Feb 17 to discuss registration with I-SEM Registration Team and ECC.

• All application forms must be in by 28th Feb 2017 • Then a process of validation and approval, so that participant can be ready for Market

Trial • Any remaining trading or clearing registration requirements can be completed during

the market trial e.g. putting collateral in place etc. • Also potential (although not recommended) to register up to end of June for new ECC

members, or end of August for existing ECC members (taking account of registration lockdown period).

41

Plan Narrative (NEMO)

42

Key Milestones (NEMO)

Date Milestone

Now NEMO (ECC) KYC Form Available

31/12/2016 Deadline for KYC registration of interest

17/01/2017 NEMO Exchange & ECC Application Forms Available

28/02/2017 NEMO Exchange Application Deadline (Market Trial and Go-Live)

28/02/2017 KYC, New Member Application, Existing Member Application

Deadline (for Market Trial)

30/06/2017 KYC Documentation Deadline (for Go-Live)

30/06/2017 New Member Application Deadline (for Go-Live)

31/08/2017 Existing Member Application Deadline (for Go-Live)

01/06/2017 Market Trial Start

01/10/2017 Go-Live

43

Documentation – EirGrid/SONI Exchange

Forms Supporting Documents

• Membership Agreement

Contractual Agreement to use the Exchange

• Exchange Application Form

Details on the company applying to the Exchange

• Schedule of Signatories

Allows delegation of authorised signatures

• Trader Setup

Registration of Traders

• User Setup for Systems

User Setup details for Auction (ETS) and Continuous (M7) Systems

• REMIT Reporting

Agreement to perform REMIT reporting

• Proof of signatures

44

Example 1 – Party Level

Unit A (GU_5xxxxx)

Bal NEMO CRM

Party (PY_000230)

Participant (PT_5xxxxx)

BAL CRM NEMO

NI

Unit B (GU_4xxxxx)

ROI

Party* (C_ABCEX)

=Settlement Member

Product Group Northern Irish Power

CAP/BAL NEMO/ECC

Unit A (GU_5xxxxx)

Unit B (GU_4xxxxx)


BAL CRM NEMO

Bal NEMO CRM

Product Group Irish Power

£

€ £

€

*Company in NEMO speak

45

Example 2 – Participant Level

Bal NEMO CRM

Party (PY_000230)

Participant A (PT_5xxxxx)

BAL CRM NEMO

NI ROI

Participant A* (C_ABCEX)

=Settlement Member

Product Group Northern Irish Power

CAP/BAL NEMO/ECC

Participant B (PT_4xxxxx)

BAL CRM NEMO

Bal NEMO CRM


£

€ £

€

*Company in NEMO speak

Participant B* (C_ABCEX)

=Settlement Member

Unit A (GU_5xxxxx)

Unit B (GU_4xxxxx)

Unit A (GU_5xxxxx)

Unit B (GU_4xxxxx)

46

Example 3 – Trading on Behalf (incl. Financial)

Party Small Windfarm Co.

Unit A (GU_4xxxxx)

CAP/BAL Market NEMO/ECC

Unit A Small

Windfarm Co. Unit

Participant

BAL CRM NEMO

Bal NEMO CRM


Company (Trading Co.)

Unit B Small Solar

Co.

NEMO trades for balancing

market

NEMO trades for balancing

market

Party Small Solar Co.

Unit B (GU_4xxxxx)

Participant

BAL CRM NEMO

Bal NEMO CRM

• Must be legal entity

• Must have VAT registration

• May be different entity to Party/Participant, but Units must be registered in Balancing Market

• Invoices in different currencies for different product groups

47

Considerations (NEMO)

Contact a Settlement Bank or Clearing Member

Submit admission forms to ECC

ECC reviews admission documents

Technical setup of trading and clearing systems

Admission as Direct Clearing Participant or

Non-Clearing Member

1

5

2

3

4

ECC‘s Admission Process Overview

48

Non-Clearing Member Direct Clearing Participant

Trading Participant on an ECC approved Spot market

Passed ECC’s KYC assessment

Concluded a DCP Clearing Agreement with ECC

Proof of bilateral agreement with a Settlement bank

Pledged Settlement account in favour of ECC

Power of Attorney for ECC to debit settlement account

Contribution to the Clearing Fund

Trading Participant of the exchange

Client of a Clearing Member

Passed ECC’s KYC assessment

Sign a trilateral NCM agreement with the Clearing member and ECC

Conclusion of a balance group agreement with the respective TSO in case of physical delivery

Onboarding at ECC Overview Membership Types

49

Clearing Member EirGrid & SONI NEMO

(Business) Transaction

(Business) Takeover

Collection of securities

Nomination/Delivery

TSO

Trading

Participant 1

2

3

Collection of securities 3

4

Nomination/Delivery 4

50

Non-Clearing Member Model

Non-

Clearing

Agreement

Balance

Responsable

Agreement Trading

Agreement

Non-Clearing Member Requirements for Non-Clearing Members

The following requirements are necessary for admission by ECC:

completion of a Know-Your-Customer (KYC) Questionnaire if requested by

ECC and passing of the ECC KYC assessment or other applicable access

policies of ECC

completion of a corresponding NCM Agreement with the co-operating Clearing

Member and ECC

the clearing license of the Clearing Member co-operating with said Non-

Clearing Member has to comprise the product concerned

the conclusion of a balance group agreement with the respective TSO, in case

of physical delivery

51

Non-Clearing Member Application Forms

TP Forms

scan

TP_[MARKET]_01a POSSIBILITY TO FULFILL TRADES

PHYSICALLY

TP_[MARKET]_01b POSSIBILITY TO FULFILL TRADES

PHYSICALLY WHILE USING A THIRD

PARTY

NCM Forms

scan

“KNOW YOUR CUSTOMER” QUESTIONNAIRE

TP07 VAT DETAILS

T10 APPLICATION FOR SETUP/

MODIFICATION / DELETION OF USER-

IDs – not mandatory

original

NCM01 APPLICATION FOR ADMISSION AS

NON-CLEARING MEMBER

NCM02 NCM AGREEMENT

Supplementary documents like:

certificate of company register, proof of signatures etc.

Reduced admission scope for

existing NCMs, who only enhance

the existing membership and apply

for new spot market power products

52

Direct Clearing Participant Model Components

53

ECC introduced a new membership category, Direct Clearing Participant Clearing Member

(DCP CM). This is intended to allow especially smaller market participants to participate in

the Clearing Process of ECC even without a Clearing Member.

This alternative form of access will only

be offered for spot markets

The spot markets must have a pre-

trading limit system accepted by ECC

Collateralization of pre-trade limit in

advance with collateral accepted by ECC

Settlement Bank (SB) is needed in

order to perform financial settlement for

DCPs - no guarantee of transaction by

SB

Spot Markets

only

Pre-Trade

limits

Settlement

Bank

Collater-

alization

Direct Clearing Participant Model Role of the Settlement Bank

54

Following functions are assigned to a Settlement Bank:

Contractual partner in the Agreement with ECC and DCP CM

Provider of DCP CM account

Financial settlement provider for DCP CMs

Payment agent, takes over the payment function

Guarantor for fulfilment of a payment order initiated by SB or a payment request by ECC

Agreement with ECC

and DCP CM

Provider of settlement

account for DCP CM

Payment Agent

Guarantor for

fulfilment of payment

orders/requests

Settlement Bank

Direct Clearing Participant Model Requirements for Direct Clearing Participant

The requirements to become a DCP are stipulated under article 2.1.3 of

ECC’s Clearing Conditions.

Passed ECC‘s KYC (Know Your Customer) assessment

Approved as a Trading Participant for at least one ECC approved Spot Market

where DCP Model is available

Country of origin of DCP CM is approved by ECC as DCPM ready

Proof of Agreement with Settlement Bank and ECC

Contribution to the Clearing Fund

Deposit of Collateral

Minimum equity of 50k€

55

Direct Clearing Participant Model Fee Structure DCP

56

Fee type Amount Invoicing party/ Due date

Annual Fee 12,500€ for all spot markets

9,000€ / 6,000£ for single

market (e.g. APX UK)

ECC AG / invoiced annually in advance

Variable Fees ECC Clearing Fees for spot

market

ECC Luxembourg S.a.r.l / 10th working day of the

following month

Collateral Adjustment

Fee*

100€ / 70£ per collateral

transaction

ECC AG / t.b.d. (either monthly or yearly)

Limit Adjustment Fee* 100€ / 70£ per limit adjustment


Expenses for cash Respective negative interests

in total


Fees are settled via the DCP‘s Settlement Bank according to the outlined

financial settlement process.

Direct Clearing Participant Model DCP Trading Limits

Direct Clearing Access is allowed for markets with a pre-trade limit system in place.

It allows small and medium sized entities to gain direct access to the Spot markets

cleared by ECC.

Trading needs to be PRE-FUNDED by the Direct Clearing Participant and will be

restricted such that exposures will always be below the available total collaterals

furnished by the DCP to ECC as well as a credit limit which will be calculated by ECC

based on the scoring of the DCP.

DCP can

establish a limit amount depending on his expected trading volume per market

ECC will calculate the respective total collateral amount which needs to be

provided

announce the respective collateral amount he is willing to provide

ECC will derive a total limit amount

Accepted Collateral: Cash and Bank Guarantees in EUR or GBP

A settlement bank provides TARGET2 access and acts as payment agent.

57

Direct Clearing Participant Model Application Forms

58

DCP Forms TP Forms Further Forms

• „Know Your Customer“

Questionnaire

• DCP 01

Application for admission as DCP-

Clearing Member

• TP 07

VAT Details

• T10

Application for setup/ modification/

deletion of user IDs

• O09 Limit Adjustment Form

• O10 Cash Collateral Form

• TP_Market_01a

Possibility to fulfill trades

physically

• TP_Market_01b

Possibility to fulfill trades

physically while using a third party

• Certificate of company register


• (audited) Annual reports

• Agreement with settlement bank

• Power of Attorney

Clearing Members & Settlement Banks Network

October 2016

59

2

12 1

2

1

2

1 1

2

24 Clearing Member ABN AMRO Clearing Bank N.V.

Banca Akros SpA

Banca Popolare di Sondrio SCPA

Banco Santander, S.A.

Barclays Bank PLC

Bayerische Landesbank

BNP Paribas Commodity Futures Ltd.

Citigroup Global Markets

ED&F Man Capital Markets Limited

Goldman Sachs International

INTL FCStone LTD

J.P. Morgan Securities plc.

KELER CCP Ltd.

Macquarie Bank International

Marex Financial Limited

Merrill Lynch International

Morgan Stanley & Co. International plc

Nordea Bank AB, Frankfurt Branch

Oesterreichische Kontrollbank AG

Raiffeisenbank a.s.

Renta 4 Banco

Societe Generale Newedge UK Limited

UBS AG

UniCredit Bank Czech Republic and

Slovakia, a.s.

1 Settlement Bank ABN Amro Bank N.V.

1

• Deadline for Registration of Interest - 31st Dec 2016

• KYC form available from ECC website now

https://www.ecc.de/ecc-en/access-to-ecc/admission-forms

60

KYC Registration of Interest

Any questions or queries please contact:

Anke Voigt ECC

Member Readiness T: +49 341 24680-155

[email protected]











61

Next Steps (NEMO)

Talk to the settlement banks/clearing members here today

Consider potential NEMO entity setup

Download ECC KYC form and take a look

Obtain examples of the other ECC forms from ECC website: https://www.ecc.de/ecc-en/access-to-ecc/admission-forms & make first contact with ECC

Submit KYC by end of year (if not before)










62

Agenda





12:45 – 13:15 Lunch






63

Agenda





12:45 – 13:15 Lunch






64

• Being appointed by Moyle and EWIC to allocate Financial

Transmission Rights – Options according to the Harmonised

Allocation Rules, on the assumption that it will be appointed as the

Single Allocation Platform

JAO – Joint Allocation Office

65

FTR Options – Key Details

• Entitle the holder to receive the loss adjusted day ahead market spread between SEM and GB

• Allocated by auction according to HAR (inc. regional annex)

• Similar timeframes as today

• Customer relationship is with JAO – Place security with JAO

– Bid for auctions on JAO platform

– Pay JAO for FTRs acquired

– Receive FTR pay-outs from JAO

66

JAO registration process

1. Complete Participation Agreement and Financial Agreement

2. User account form and electronic certificate

3. JAO open dedicated business account 1. Fund transfer request form

2. Power of attorney form

3. ID

4. Signatory specimen form

4. Provide bank guarantee

67

Fees

• No charges from JAO to market participants

• Only bank charges to be paid (c.€250)

68

Timelines

Registration

• Registration can start immediately

• 7 working days to countersign agreements

• 7 working days to create user accounts

• Dedicated business account

Test and trialling

• Familiarisation trials expected 4 months before 1st action

• Mock auctions facilitated in quarter leading up to 1st auction

69

Documentation

[email protected] http://www.jao.eu/support/resourcecenter/overview



70

Agenda





12:45 – 13:15 Lunch






71

TSC Accession

• Existing TSC Framework Agreements needs editorial changes – e.g. references to “Pool” and TSC cross references

• Requires existing Parties to sign updated Framework Agreement • New Parties to follow normal accession process Timeframes • TSC Code approved (15th March 2017) • Framework Agreements signed by existing Parties (31st March

2017) • New Parties to apply for accession (31st March 2017)

– Actual signing of accession deeds not until April/May

Aim is to develop combined process with CMC accession to minimise effort

72

Timelines (Balancing)

• Balancing Market registration needs to start first – As the unit in the balancing market forms the key link between all

markets and services

– Also, significant amount of technical data needs validation and new data needed for I-SEM

• Four main activities: 1) Validation and update of the BAL Registration Data (Nov-Jan)

2) Submission of Supporting Information (Jan – March)

3) Signing of Framework Agreements (March)

4) Completion of ‘Final Registration Requirements’ (June-Sept)

• Validated and approved BAL registration data used as the basis for Market Trial and registration of other markets/services

73

Plan Narrative (Balancing)

74

Summary of Process (Balancing)

1

• Review and Update Balancing Registration Data (31st Jan 2017)

2

• Submit Balancing supporting information (17th March 2017)

3

• Sign Framework Agreement under TSC#1 (31st March 2017)

4

• Balancing registration data validated and approved (31st March 2017)

#1 for existing Parties to the TSC

Key Date Milestone

18/11/2016 I-SEM Registration Team provide existing registration data, proposals for adjustments to meet new entity model, and additional fields needed

29/11/2017 BLG on validating Balancing Registration Data

17/01/2017 I-SEM Registration Team issue registration supporting information application forms

31/01/2017 Registration Data Submission Deadline

15/03/2017 TSC Code Approved

17/03/2017 Registration Supporting Information Submission Deadline

31/03/2017 New Party Application Deadline (if required)

31/03/2017 TSC Framework Agreement Signed

31/03/2017 Balancing Market Registration Complete (ahead of Capacity Market Registration/Qualification)

05/05/2017 New Party Accession Deeds Returned (if required)


01/10/2017 Go-Live

75

Key Milestones (Balancing)

76

Documentation (Balancing)


Party

•TSC Framework Agreement

•TSC Accession Application (if not existing TSC Participant)



Unit/Participant

•Balancing Data Verification

•Form of Authority

•User Access Setup

•Remit Form

•Proof of signatures

•Certificate of company register

Considerations (Balancing)

77

Entity Model Unit Types Trading Sites

Settlement Documents

Settlement Reallocations

Collateral Requirements

Deminimus Intermediaries User Access

1 2 3

4 5 6

7 8 9

1) Old SEM Entity Model (Balancing/Capacity)

• Entity model changing

• Accounts removed

78

Party (PY)

Participant (CP)

Account (PT)

Unit (GU)

Unit (GU)

Account (PT)

Unit (SU)

Unit (SU)

Etc…

Etc…

Etc…

Etc…

- Accounts only included in SEM due to issues with VAT and Invoice representation (this is no longer the case)

- PT (Accounts) becoming PT (Participants)

Participant (PT CP)

79

1) I-SEM Entity Model (Balancing/Capacity)

PARTICIPANT • Must have separate Participant

in each jurisdiction/currency zone

• Limited to one Participant per jurisdiction, unless RA approval

• Level of Collateral

• May be a party or a business division of a party

• Single Settlement Document for all Units under the Participant

• Single Payment/Single Bank Account used for payments to Participants

Party (PY)

Participant (PT_4)

Unit (GU)

Unit (GU)

Unit (SU)

Unit (SU)

Etc…

PARTY

• Accession to the Code

• Party Administrative User

• Users defined but access defined by Participant

Participant (PT_5)

Etc…

€ ₤

80

1) Entity Model and Units

Unit B (GU_4xxxxx)

BAL NEMO CM

Party (PY_000230)


BAL CM NEMO


ROI

BAL CM

Unit C (GU_5xxxxx)

BAL CM

NI


• Key is the Unit to link to each market

Unit A (GU_4xxxxx)

BAL NEMO CM

81

2) Units

• Retain Unit IDs for existing units in the SEM – Minimising impact on participant and meter data provider systems,

e.g. SU_xxxxxx, GU_xxxxx

• New unit types to cover new market requirements

• Must register Unit before participating in any I-SEM market – General Unit information needed for first registration in any I-SEM

market. To get GU/DSU/SU id

– Market Specific Information provided when register for a specific market

82

2) Unit Types

Unit Type Unit ID Market Relevance Existing SEM Unit or New

Comment

Generation Unit GU_XXXXXX CM, NEMO, BAL Existing Includes Aggregated Generation Units (AGUs)

Supply Unit SU_XXXXXX NEMO, BAL Exisiting Includes Trading Site Supply Units and ‘Normal’ Supply Units

Demand Side Unit DSU_XXXXXX CM, NEMO, BAL Existing

Assetless Trading Unit

AU_XXXXXX NEMO, BAL New Purer traders, Central Counterparties, Shippers

Capacity Aggregation Unit

CAU_XXXXXX CM New Only relevant were aggregate units for capacity market

Trading Unit TU_XXXXXX NEMO, BAL New Used to bid in on aggregate to NEMO markets. Only relevant for autoproducers

NEW

EX

ISTI

NG

• Still needed for I-SEM – To allow correct settlement, especially for Autoproducers – Facilitates dynamic Firm Access Quantity (FAQ) allocation for settlement

• Needed for all Generation Units, except pump storage/battery storage – Including DSUs and Autoproducers

• NGUs no longer needed on trading sites!

• TSSU – not as relevant for I-SEM. Associated Supplier Units enough in most cases – See Appendix of Registration BLG for more details

83

3) Trading Sites

Must have Trading Site Must Not have Trading Site

GU – Generator Unit AU - Assetless Trader Unit

DSU – Demand Side Unit Interconnectors

TSSU – Trading Site Supply Unit (Pumped/Battery) Storage Generators

TU (Trading Unit)*1 SU - Supplier Units (excluding TSSU)

1 Only relevant for Autoproducers

84

4) Settlement Documents

• Settlement Document is the new “Invoice/Self-Billing Invoice”

• Settlement Document contains ‘invoice’ for all Units under Participant – For all billing runs (Initial, M+4, M+13, Ad-hoc)

– Potentially for Capacity and Balancing

– VAT calculation at this level

• Reduces number of Invoices from 30 per month, down to ~6

• Still receive Settlement Statements and market information reports giving details of all payments & charges, by unit, by trading period

85

5) Settlement Reallocation Agreements

Significant change from the format in SEM

Old SRA Design

• Multiple SRAs between two Participants; by amount, Trading Day period and market

New SRA Design

• Standing Agreement between two Participants to transfer all their financial obligations (including credit obligations)

• Single agreement with a start date and end date

• Pools settlement and collateral requirements with the one Participant

86

5) Settlement Reallocation Agreements

• Principal Participant – takes financial responsibility – For all Balancing, Capacity and MO Charges of Secondary Participant(s)

• Secondary Participant – hands over financial responsibility

• Restrictions – Principal Participant can’t be Secondary for another Participant (no daisy chain)

– Secondary Participant can only have SRA with one Principal Participant

– Secondary Participant cannot be Principal Participant as well

Secondary Participant 2


Principal Participant

SRA SRA

87

5) SRA Example – Settlement




Settlement Amount Owes £100 Owed £80 Owes £30

SRA on Settlement Document

-£50 from Secondary PT 1 & 2

-£80 to Principal PT

+£30 to Principal PT

Settlement Document Net Amount

£50 £0 £0

• Secondary Participants still receives Settlement Statements and Settlement Documents (with zero amount owing/owed)

88

5) SRA Example – Credit Cover




Calculated Credit Cover +£1M - £0.8M +£0.5M

SRA transfer -£0.3M from Secondary PT 1 & 2

-£0.8 to Principal PT

+£0.5M to Principal PT

Required Credit Cover £0.7M £0 £0

• Collateral requirement is with Principal Participant, no collateral requirement with Secondary Participants

89

6) Collateral Requirements

• Netting of collateral for all supply and generation units under

a Participant - as accounts removed

• Calculated at the Participant Level – unless SRA in place

• Similar calculation methodology to SEM – Using Invoiced not Paid, Settled, Traded Not Settled, and Future

Exposure Period

• Collateral requirements may be different due to separate trading in the DAM/IDM and the Balancing/Capacity Market

7) De minimus maintained – i.e < 10 MW

8) Intermediaries maintained – Assumed similar to existing criteria for intermediaries

– Consultation on this by RAs will occur in the near future

90

7) De minimus & 8) Intermediaries

91

9) User Access (Balancing Systems)

• Users are created at a Party level – Digital Certificates used to access Balancing Market Interface at a User/Party Level

• System Access allocated to each User at Participant level – Allows access to be restricted on a jurisdictional basis, if required

• User Access managed by Party Administrative User (PAU)

• User Access now includes; – System Access

– User Notifications (New) i.e distribution lists

– User Authorisations (New) i.e. authorised persons

– Organisational Key Contacts (New) e.g. invoicing key contact

User Type Role Description Create New Users

Submit/Query Registration

Trading & Settlement Access

Party Administrative User (PAU)

• Manage new and existing users (including new PAUs)

Y Y (User Information)

Y (Optional)

Registration User (RU)

• Manage Registration Data on behalf of the Party (New Registrations, data changes etc.)

N Y Y (Optional)

Other System User (OSU)

• Access the Balancing Market Trading Interfaces, including access to other systems – NEMO & CRM(type 2)1

N N Y (Optional)

92

9) User Access Roles (Balancing Systems)

The below table details the different User Types with the Balancing Market Interface and their specific roles;

N.B – A User can be any combination of the above User Types 1 – NEMO and CMC access are not done through the Balancing Market Trading Interface. However, access permissions are captured in I-SEM Registration Process

93

Next Steps (Balancing)

Review the Balancing considerations in this presentation

Consider any Entity Model setup changes

Review Balancing Registration Data being sent out (18th Nov)

Ask questions through the [email protected] mailbox

Keep 29th Nov free for the Balancing Registration Data webinar






94

Agenda





12:45 – 13:15 Lunch






• Relevant for DAM/IDM only

• Participant must register with both NEMO Exchange and ECC directly – Taking financial responsibility for DAM/IDM markets

• AoLR provides trading & PN submission service – Participant registers for AoLR service

– Participant provides default parameters and updates parameters as needed e.g. availability

– AoLR submits bids using the Participants NEMO Exchange setup for DAM/IDM Auctions based on parameters, wind forecasts, etc.

95

AoLR Service

AoLR Service Overview

Trading Parameters

• Forecast or availability

• Market Parameters

Calculate Volumes

• Calculation using parameters

Day Ahead Market

• Price Taker offers

Intraday Market

• Bids/Offers based on updates

Reporting

• AOLR user reports

• Data submission to TSO

PN submission

– Updated position

– Day Ahead position

96

97

Timelines (AoLR)

98

Plan Narrative (AoLR)

• Starts later as need to have Balancing Units, and NEMO application at least started

• Publish application forms end of February

• Participant prepares application and submits by mid April

• Applications reviewed and approved by mid May ahead of Market Trial

• Final Registration Requirements followed up during Market Trial (if required)

• Changes to AoLR Service registration using enduring process during Market Trial

Key Date Title

28/02/2017 Publish AoLR registration applications forms

18/04/2017 AoLR Application Deadline

19/05/2017 AoLR Applications Complete


01/10/2017 Go-Live

99

Key Dates (AoLR)

• Likely documentation required for the AoLR Service setup

100

Documentation (AoLR)


•AoLR Application Form – providing key details related to the application including relevant units, default parameters, key contacts, NEMO/ECC registration details etc.

•AoLR Agreement – Legal agreement for using the AoLR Service

•Evidence of NEMO Exchange and ECC registration

101

Next Steps (AoLR)

Consider if you need AoLR Service

Initiate NEMO Exchange/ECC registration (see Section 3 for details)

Obtain application forms once issued (28th Feb 2017)

Complete applications by deadline (18th Apr 2017)

102

Agenda





12:45 – 13:15 Lunch






• CMC currently being drafted

• CMC is a new Code

• Different governance to TSC

• Existing TSC Parties to sign Framework Agreement

• Suppliers likely to need to sign CMC Framework Agreement

• New Parties to follow enduring accession process

• Generators, DSUs and Interconnectors must also register and qualify units for Capacity Market

103

CMC Accession

Aim is to develop combined process with TSC accession to minimise effort

104

Registration/Qualification (Capacity)

• General setup of a Unit for the Capacity Market

• Includes: access to IT systems, setup of Units details and IDs, etc.

• It does not mean the unit will be allowed to take part in a given auction. This is determined through qualification for the auction

Registration

• Ensures unit meets requirements to participate in a given Capacity Auction for a given Capacity Year

• Has eligible capacity to offer in the auction

Qualification

105

Timelines

• Four main stages to registration/qualification 1) Consultation and parameter decisions (Oct – Feb) 2) Accession to CMC 3) Unit Application Submission 4) Qualification Approval 5) Qualification Review (if needed)

• Different process to existing SEM capacity registration as involves more stringent registration and qualification process. Including auction qualification for each capacity year

• Application forms available 17th Jan 2016 • Auction information pack published in Feb to allow consideration and time to request exceptions from RAs • CMC Approval due 8th March 2017 • New CMC Framework Agreement to be signed by existing participants to TSC

– In tandem with TSC Framework Agreement end of March 2017, or – New Party application in by end of March 2017

• Submission of signed Framework Agreement by 31st Mar 2017 • Links to Party, Participant and Unit from the Balancing Market registration • New Form of Authority

– Even for existing TSC Participants with TSC form of authority

• Unit Registration/Qualification application by end of March 2017 – Based on balancing market party, participant, unit setup – Plus evidence of qualification criteria being met

• Qualification Approval April - May • Qualification Review June-July • Mock Auctions – mid to late July 2017 • Auction Date - End July 2017 (Note: before I-SEM Go-Live date)

106

Plan Narrative (Capacity)

The Capacity Auction Information Pack for a Capacity Auction will contain: 1. De-Rating Curves, describing De-Rating Factors by unit Initial Capacity and by Technology

Class (including for Interconnectors);

2. the Capacity Requirement for the Capacity Year;

3. how much Awarded Capacity has already been procured for the relevant Capacity Year;

4. the Auction Price Cap;

5. the Existing Capacity Price Cap;

6. the €/MW rate of the New Capacity Investment Rate Threshold;

7. the Annual Stop Loss Limits applicable to the Capacity Year;

8. the Billing Period Stop Loss Limits applicable to the Capacity Year;

9. the Annual Capacity Payment Exchange Rate (XRCPAy) applicable to Awarded Capacity in the Auction;

10. the allowed tolerances that may be applied by a Participant in its Qualification Application to Capacity Market Unit de-ratings;

11. the level of Performance Bonds and the timeframes for providing them;

12. the €/MW rates for calculating Termination Fees;

13. the Administered Scarcity Price applicable to the Capacity Year; and

14. the Capacity Auction Timetable (at least for events after the publication of the Capacity Auction Information Pack). 107

Capacity Auction Information Pack

108

Summary of Process (Capacity)

1 • Submit registration data and information under TSC (17th March 2017)

2 • Sign Framework Agreement as existing Party under TSC#1 (31st March 2017)

3 • Sign Framework Agreement as existing Party under CMC#1 (31st March 2017)

4 • Submit registration/qualification information under CMC (31st March 2017)

5 • Provisional Qualification completed (31st May 2017)

6 • Take part in mock auctions (mid to late July)

7 • Final Qualification Approved (24th July 2017

8 • Take part in T-1 Auction (31st July 2017)

#1 for existing Parties to the TSC

Date Milestone

17/01/2017 I-SEM Registration Team issue registration/qualification application forms

17/02/2017 Capacity Parameters Approved

28/02/2017 Exemption Application Deadline

08/03/2017 CMC Code Approved

31/03/2017 New Party Application Deadline (if required)

31/03/2017 CMC Framework Agreement Signed

31/03/2017 Unit Qualification Application Deadlines

05/05/2017 New Party Accession Deeds Returned (if required)

08/06/2017 Provisional Qualification Results Approved

24/07/2017 Final Qualification Results Approved

~15/07/2017 Mock Auction 1

~22/07/2017 Mock Auction 2

31/07/2017 T-1 Auction for 2017/2018

109

Key Milestones (Capacity)

110

Documentation (Capacity)


Party

• CMC Framework Agreement

• CMC Accession Application (if not existing TSC Participant)



Unit/Participant

• CM Unit Application Form (including Qualification Data)

• Form of Authority

• Certification of Compliance

• User Access Setup – Auction Systems

• Opt –Out Form

• Remit Form


• Certificate of company register

• Evidence of New Investment Cost Threshold approved by RAs

• Evidence of Specific Unit Price approved by RAs

• CMC Form of Authority

• Implementation Plan

• Evidence of Connection Agreement

• DSU Business Plan

• Details of the TSC Participant and Unit registration and qualification information needed for the Capacity Market

– e.g. TSC Party, Participant, Unit identification

• Qualification Data – Type of Unit, Initial Capacity, Existing Capacity, New Capacity, Firm

Transmission, Technology Class , De-Rated Quantities

• Capacity Market Unit Group (if needed) – Generation Units to include, priority dispatch, etc.

• AGU information (if needed), and evidence of authorisation to include unit

111

CM Unit Application Form

• Generator, DSU or Interconnector Unit are obligated to qualify unless meet voluntary qualification criteria e.g. De minimus, Dispatchable, Variable criteria

• Opt-Out option where opt-out criteria are met e.g. The Unit will close prior before the end of the capacity auction year

Alternative Qualification

• If a required Participant & Unit does not apply – System Operator shall determine the Qualification results for that Unit

using the Alternative Qualification Process

112

Application Requirements

• Aggregation option

• Limited to units with intermittent renewable priority dispatch, or Registered Capacity below De Minimis Threshold

• All units must be under the same Participant

• Cannot be Interconnector or Autoproducer

113

Aggregating Units in Capacity Market

Party (PY)

Participant (PT_4)

Unit (GU_xxxxx)

Unit (GU_xxxxx)

Unit (GU_xxxxx)

Unit (CAU_xxxxx)

• Balancing and Capacity Markets strongly linked

• Party, Participant in TSC used for CMC, and vice versa

• Settlement Documents combined with TSC Settlement Documents

• Bank accounts and collateral combined with TSC Participant

114

TSC and CMC Links

115

Next Steps (Capacity)

Consider potential Capacity Market setup when completing Balancing Market registration

Keep up-to-date on CMC Code development & consultation

Become familiar with the CMC requirements and criteria from draft CMC when issued for consultation (November)

Obtain application forms for CM (17th Jan 2017)

Complete CM application forms (31st March 2017)

Complete Framework Agreement (31st March 2017)

116

Agenda





12:45 – 13:15 Lunch






Key Contacts

117

Market Organisation Contact Name Email

Jean-Pierrre Miura (Policy Development)

Email: [email protected] Phone: +44 28 9031 1575 Web: www.uregni.gov.uk

JAO Helpdesk Email: [email protected] Phone: +352 27 62 38 01 Web: http://www.jao.eu/support/resourcecenter/overview


Claire Breslin Email: [email protected] Phone: +353 1 23 70163 Web: http://www.sem-o.com/ISEM/Pages/Home.aspx

Anke Voigt Email: [email protected] Phone: +49 341 24680-155 Web: www.ecc.de


Claire Breslin



Claire Breslin



Claire Breslin


Capacity

Balancing &

Imbalance

Settlement

NEMO Exchange

AoLR

NEMO Clearing House

Financial

Transmission Rights

(Cross-Border)

Forwards

(Within Zone)


http://www.uregni.gov.uk/












http://www.ecc.de/

























118

Registration Key Contact

• Key registration contact for each Party

• Will receive all correspondence regarding registration for the Party

• Please email details of this contact by 1st Nov 2016 to:

[email protected] • Include: Name, Position, Contact Numbers, Email, Party

Representing (PY number and Name)






119

References

• Transitional Registration Plan

http://www.sem-o.com/ISEM/General/Transitional%20Registration%20Plan.pdf

• Registration BLG Presentation (this presentation)

http://www.sem-o.com/isem/Pages/Home.aspx under registration section

• I-SEM Registration Website (for other registration related information)

http://www.sem-o.com/isem/Pages/Home.aspx

http://www.sem-o.com/ISEM/General/Transitional Registration Plan.pdf














Next Steps (Immediate)

Submit nomination for “Registration Key Contact” for each Party to the

I-SEM Registration Team at [email protected] (1st Nov 2016)

Review this presentation Review the Transitional Registration Plan Consider the entity model setup information in the Balancing and NEMO

sections of the presentation and how it relates to your organisations Download KYC application form from the ECC website to see what

information is needed in preparation for registering interest with ECC by the end of the year

Watch for the Balancing Registration Data being send (18th Nov 2016) Keep date free for the Balancing Registration Data webinar (29th Nov

2016) Review the Next Steps under each market/service section discussed

today






121

Questions?

Appendices

122

Appendices

Appendix 1

Trading Sites

123

Section B9 of TSC • Trading Site (TS) – means one or more Generator Units and at most one

Trading Site Supplier Unit of which, with the exception of Trading Sites that contain Generator Units that are Aggregated Generator Units or Demand Side Units, all Generator Units are covered by a single Connection Agreement, or in the event that no Connection Agreement exists, all such Units are located on a Contiguous Site, or as described in section B.9.

• Trading Site Supply Unit (TSSU) means a Supplier Unit that contains only the Demand within a Trading Site, and is settled on a net basis against the Generator Units on that Trading Site under the rules specified in the Code.

124

Trading Sites

125

Trading Sites – Single Generator Unit

• All Generator Units must have Trading Site (TS), with a few specific exceptions.

• The simplest setup of a Trading Site is one to one with a Generation Unit.

• Common for wind units

PT1

Trading Site

GU

PT2

126

Trading Sites – Multiple Generator Units

• Common for thermal generation units

• Associated Supply Unit may be the same Participant or different Participant

• The proposed standard setup is shown below:

SU As an associated Supply Unit

PT1 Trading

Site

GU GU

127

Trading Sites – Multiple Generator Units

• An alternative setup option is shown below

• This setup was typical for SEM, but is not as beneficial for I-SEM. See next slide for why…..

TSSU

PT1 Trading

Site

GU GU

• TSSUs are really only needed for autoproducers sites where the import can be significant when on site generation units are not operating.

• Other participants in the SEM have historically set themselves up with TSSUs which has the following advantage:

– Within the ex-post market of the SEM, when a site is importing (on the TSSU), the market availability for the generators is set by taking account of the site import. This is on the basis that the generators on the site can deliver the import requirement before the site begins to export. Rules for calculation of actual availability therefore take account of the site import and can allocate this as an available quantity for the ex-post market. Where this availability is below the minimum availability of the unit, the MSP resets the availability for the ex-post scheduling to the minimum availability. Thus, a unit which is serving a small house load quantity of 0.5MW can have an availability set to the unit’s min availability which is likely to be a higher figure.

• Why this is less relevant for the I-SEM. – Given that access to the market in the I-SEM will be through the ex-ante market, the link between the FAQ

of the site, the ex-post demand on the site and what is available to the market no longer exists. Participants will have to determine how much they wish to offer to the ex-ante market; the TSOs will schedule the unit on the basis of system conditions and the ex-post settlement will apply relevant prices to firm and non-firm quantities for units as appropriate. The ex-post settlement calculation does still account for on-site demand in determination the level to which each generator is firm and this can therefore have an impact on the price against which TSO actions are settled; however, the overall impact may be less than in the SEM where a generator stands to get a significantly higher access to the ex-post market.

• As such, in the SEM a small house load of 0.5MW can result in payments on the basis of min-availability of, e.g. 20MW, whereas in the I-SEM a small house load of 0.5MW will result in differences in payments on the basis of 0.5MW.

• In addition, in having a TSSU in place the participant will incur credit cover requirements and need to pay market operator charges for no additional benefit.

128

Why are TSSUs not as relevant now

129

Trading Sites – Demand Side Unit

• Demand Side Unit (DSU)

• Must have TSSU

TSSU

PT1 Trading

Site

DSU

PT2

130

Trading Sites – Aggregated Generator Unit

• TSSU not allowed with Aggregated Generator Unit (AGU) Trading Site, must have an associated Supply Unit

SU As an associated Supply Unit

PT1 Trading

Site

GU

As an AGU

131

Trading Sites – Autoproducer

• Autoproducers are large industrial sites with high demand requirements, but also have significant generation capabilities. At some times their onsite demand will be less than their generation and hence they will be able to generate power that can be supplied to the SEM.

• May register a Trading Unit (TU) as part of their Trading Site to facilitate participation in the day-ahead and intraday markets as a single Unit for all GUs.

• Recommended Setup

TSSU

PT1 Trading

Site

GU GU TU

Appendix 2

Balancing Entity Model

132

Person: a reference to a “person” includes any individual, partnership, firm, company, corporation (statutory or otherwise), joint venture, trust, association, organisation or other entity, whether or not having separate legal personality; Party: means any person who is a party to the Framework Agreement and is thereby bound by the Code, and shall include its successors and permitted assigns. Participant: means a Party or business division of a Party which at the relevant time has been designated as, or deemed to be, the “Participant” in relation to any Units which have been registered in accordance with the Code. A reference to a Participant shall be construed as a reference to the relevant Party in its capacity as the person registered in respect of the relevant Units. Any obligation expressed to be on a Party shall, where appropriate, be construed as an obligation on that Party in respect of each of its Participants.

133

TSC Definitions