The regulators’ view on the Central West REM: Emphasis on the completion of existing initiatives. Presentation for the Mini-Forum 20 June 2006. Context The 2 roadmaps CRE-CREG-DTe and CRE-FNA.
Presentation for the Mini-Forum
20 June 2006
Based on a joint synthesis of contributions from stakeholders to large public consultations, the 2 “Roadmaps” initially adapted to their specific context put the focus on short-term and long-term priority actions to improve regional market integration
Principal agreed action points of the roadmaps
implementation of cross-border balancing trade
6. Implementation of trilateral market coupling (F-B-NL)
7. Implementation of a common calculation method
1. Coordinated explicit auctions
Already implemented on the NL-B-G borders.
Implemented, by the 1st of January 2006, on F-B and F-G borders as requested by the roadmaps.
But three different auction platforms currently coexist:
French and German TSOs are requested to provide by the 1st of July 2006 an analysis concerning the advantages/disadvantages of integrating both platforms into a single auction office.
2. Harmonized secondary capacity markets
Two mechanisms are already in place on the NL-B-G borders:
TSOs submitted their joint proposal by the 12th April 2006.
This proposal considered several possible options with respective cost and time schedules.
Regulators informed TSOs recently of their joint decision:
3. Full harmonization of existing explicit auctions
Regulators have noted that there are currently three different sets of auction rules in the Central-West Region (IFB, IFG and TSO Auction rules) with a strong potential for harmonization in users interests
IFB and TSO Auction rules (at least for the NL-B border) must be fully harmonized by the 1st of January 2007
Full harmonization with IFG auction rules is not explicitly planned in the roadmap but should be considered by TSOs involved.
4. Increased Transparency (F-B-NL)
CRE, CREG and DTe will publish, by the 1st of August 2006, a detailed list of transparency items, based on the “Guidelines for Good Practice for Information Management and Transparency in Electricity Markets” ERGEG’s consultation paper
Harmonization of the level of transparency between the three countries is expected by the 1st of July 2007
5. Cross-border intraday and balancing trade
6. Trilateral Market Coupling
7. Coordinated method for calculating cross-border capacities
TSOs are requested to submit, by the 1st August 2006, a joint proposal for a coordinated method for calculating cross-border capacities.
For this purpose, regulators consider it crucial that the three TSOs start by sharing a common set of information/forecasts regarding, in particular:
1. Best estimation of detailed generation and demand patterns ;
2. Network topology and relevant characteristics in full detail ;
3. Transactions already executed.
Once approved by the regulators, pursuant of article 5 of the Regulation, this coordinated calculation method shall be published by TSOs and become operational by the 1st of January 2007.
8. Market power mitigation and regulatory cooperation
Exchange of confidential information by the regulators (e.g. to enable market monitoring) ; market power issues
First impressions from the regulators