The Electricity Pool Status Update - England & Wales Retail competition began rollout in September...
7
The Electricity Pool Status Update - Status Update - England & Wales England & Wales Retail competition began rollout in September Retail competition began rollout in September - profiling based settlement - profiling based settlement - 14 month final reconciliation - 14 month final reconciliation - “Retailer-hub” commercial framework - “Retailer-hub” commercial framework Major review of market initiated by government Major review of market initiated by government - bilateral contract based trading - bilateral contract based trading arrangements arrangements - centralised control - centralised control - 2 year £500 million programme to implement - 2 year £500 million programme to implement
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Transcript of The Electricity Pool Status Update - England & Wales Retail competition began rollout in September...
The Electricity Pool
Status Update - England & Status Update - England & WalesWales
Retail competition began rollout in SeptemberRetail competition began rollout in September
- profiling based settlement- profiling based settlement
- 14 month final reconciliation- 14 month final reconciliation
- “Retailer-hub” commercial framework- “Retailer-hub” commercial framework
Major review of market initiated by governmentMajor review of market initiated by government
- bilateral contract based trading arrangements- bilateral contract based trading arrangements
- centralised control- centralised control
- 2 year £500 million programme to implement - 2 year £500 million programme to implement
The Electricity Pool
Key Issues - England & WalesKey Issues - England & Wales
Form of new Trading Arrangements - especially Form of new Trading Arrangements - especially balancing marketbalancing market
Demonstration / evaluation of benefits - key concerns Demonstration / evaluation of benefits - key concerns regarding liquidity, transparency, security of supplyregarding liquidity, transparency, security of supply
Governance of new market - central control via NGCGovernance of new market - central control via NGC
Vertical integrationVertical integration
The Electricity Pool
Parallel MarketsParallel MarketsForwards
and Futures
Settlement
Day Ahead Auction
Settlement
Short term Bilateral Market
Settlement
Balancing Market
Settlement
Ancillary Services
Capacity Options?
ResidualResidual
SettlementsSettlements
The Electricity Pool
Trading Electricity - TodayTrading Electricity - TodayRisk Management
SpotMarket
Delivery
Despatch Transmission
Settlement
Special Issues
Liquidity Timing (generator flexibility)
Real time balancing
Shared, constrained capacity
Mutual risk of disconnection
14 month reconciliation
Today Bilateral contracts:
EFAs, CfDsNGC licence
Pooling and Settlement Agreement (the “Pool”)
The Electricity Pool
Trading Electricity - ProposedTrading Electricity - ProposedRisk Management
SpotMarket
Delivery
Despatch Transmission
Settlement
Special Issues
Liquidity Timing (generator flexibility)
Real time balancing
Shared, constrained capacity
Mutual risk of disconnection
14 month reconciliation
RETA Forwards, Futures Balancing and Settlement Code/NGC licence
Short Term Bilateral market
The Electricity Pool
Proposed GovernanceProposed GovernanceImplementation Enduring
OFFER / DTI
Development and Implementation Steering Group
Expert Groups
• Informal structure
• Reliance on NGC and other providers
OFFER
NGC Balancing and Settlement Code Panel
Service Providers
• Balancing and Settlement Code
- advice from Panel - authority via NGC licence
• NGC breakup?
The Electricity Pool
Vertical IntegrationVertical Integration
% energy vertically integrated
1991 1997 1997 adjusted forPowerGen/EME
49.5%42%
11.5%
