Intra Day Trading
EU Regulation – Regulation 714/2009
Regulation 714/2009 of the European Parliament and Council set out the requirement for Member States to be compliant with EU Congestion Management Guidelines for Cross Border Trade. The regulation set out requirements for SEM to include:
- the establishment of mechanisms for Intraday congestion management of Interconnector capacity in order to maximise trade opportunities and cross border balancing
- the allocation of available transmission capacity on D-1 and D after the issuing of the indicated or actual day-ahead production schedules for day D
- the implementation of firm transmission capacity rights for medium and long-term allocations subject the use-it-or-lose-it or use-it-or-sell-it principles at the time of nomination
SEM Regulatory Decision – SEM Committee Decision SEM-10-011
SEM Committee Decision SEM-10-011 SEM Regional Integration set out the project path for achieving the requirements of the Regulation.
The SEM Committee in their Decision Letter to the Market Operator and System Operator decided that the RAs would develop a Trading and Settlement Code Modification to facilitate Intraday Trading for submission to the Trading and Settlement Code Modifications Committee as soon as possible, by end quarter 1 2010. It was decided that the RAs would also set up a Working Group, reporting to the Modifications Committee, which would consider the proposed Modification and any alternatives to it, having due regard to:
- The advantages of aligning Intraday Trading arrangements in the SEM with those on the IFA and BritNed
- The desire for Intraday Trading to affect ex post SMP, to maximise the incentives for participants to submit intraday bids
- The benefits and drawbacks of multiple gate closures and the key timings and interactions to consider (e.g. initial operations schedule, wind forecasts etc.)
- The degree to which the SEM design can accommodate multiple gate closures
- The compatibility of the Project Co-ordination Group (PCG) target model for continuous Intraday Trading with the SEM design
- Interactions with explicit forward capacity auction proposals and market coupling proposals
- Interactions with dispatch in general and wind dispatch in particular.
- The merits of UIOLI as against UIOSI
It was also decided that the RAs would bring a proposed Trading and Settlement Code Modification, which the Modifications Committee has agreed on, to the SEM Committee no later than the end of September 2010.
The development of the modification can be found here.
The implementation of the market process and system changes can be found here.