market systems release update modifications committee meeting 46 dec 5 th 2012 n.
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Market Systems Release Update Modifications Committee Meeting 46 Dec 5 th 2012

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Market Systems Release Update Modifications Committee Meeting 46 Dec 5 th 2012
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  1. Market Systems Release Update Modifications Committee Meeting 46 Dec 5th 2012

  2. SEM R2.0.2 – Long Day (DST) SEM R2.0.2 deployed successfully as scheduled on October 23rd. As our next scheduled release was due for deployment in mid-November this release was required to address a defect which needed to be resolved in advance of the “Long Day” - Trading Day: October 27th, 2012.

  3. SEM R2.1.0 – November 2012 SEM R2.1.0 was successfully deployed to schedule on Friday November 16th.

  4. SEM R2.2.0 – April 2013 The following scope has been approved for SEM R2.2.0 ** added to scope on November 30th Design discussions with vendors are complete (with the exception of SEM_PC_CR300. Baseline documentation set for publication is under development.

  5. SEM R2.3.0 – October 2013 The release cut-off date for the October 2013 release to the Central Market Systems is: Friday February 22nd, 2013. All approved Modifications Proposals will be allocated to this release (subject to available capacity).

  6. Bi-Annual Release Strategy Discussion Modifications Committee Meeting 46 Dec 5th 2012

  7. First Amending Agreement Beginning with the April 2010 release to the CMS, SEMO entered into a contractual arrangement with our vendors as follows: SEMO committed to six bi-annual releases over a period of three years; Each release guaranteed a minimum of 6,125 hours of billable work for ABB/Brady; Total contract commitment of 36,750 hours. This agreement provided a number of key benefits to the SEM: Guaranteeing vendor resource availability for the delivery of change to the SEM over the lifetime of the contract; A structured and practical release schedule (April and October each year); A volume discounted rate of €185 / hour (saving of approximately 20% on ESA rate); In-built mechanism for challenging vendors on costs; Known up-front costs: rate was protected against ECI and there was no exposure to USD/EUR exchange rate fluctuations; Flexibility to purchase additional hours if required; Alignment with release strategy; Improved programme co-ordination; and Open and Transparent – Modifications Committee and SDS forums.

  8. First Amending Agreement The FAA is expiring - the April 2013 release (SEM R2.2.0) will be the last CMS release under the current contractual framework. There is uncertainty over the future appetite for change given initiatives underway at present (e.g. Market Integration). However T&SC and SDS changes are still being submitted and considered and a mechanism must exist to enable SEMO to implement change if directed. On this basis we would propose that our vendors are engaged, under similar terms as the expiring FAA, but in the context of a reducing level of change to be implemented over the medium term (i.e. 3 years). SEMO have had discussions with the Regulatory Authorities regarding a new proposal and they are in agreement that a framework to deliver change going forward is warranted.

  9. Proposal to deliver change SEMO would propose that we enter into an agreement with our vendors as follows: Implementation of six bi-annual releases , commencing with the October 2013 release; Implementation timelines would be unchanged, i.e. April and October; Each release to have a capacity of 3000 hours of billable work for ABB / Brady – this represents a 50% reduction on the previous agreement and reflects the potential for a reducing level of change going forward; Release Capacity can flex as required: Unused capacity from one release would be available for the following release – no loss of hours; Should additional capacity be required for a release it may be allocated from a subsequent release; Approval process (Modifications Committee, SDS) would be unchanged; Capacity allocations would be unchanged (80% Modification Proposals, 20% SDS): Approved Modification Proposals take precedence Unused capacity is available to the other change stream Should additional capacity be required for the final release the existing flexibility re purchasing hours would apply.

  10. Applicable Rates There would be an escalation of the hourly rate based on a number of factors: Employment Cost index (US National), averaging 2.6% over the previous agreement ; USD/EUR exchange rate deviation since the previous agreement was signed; (approx 10%); Reduced commitment (36,000 hours lowering to 18,000) would result in a lower discounted volume rate; SEMO would anticipate a negotiated discounted rate, the level of which would be based on the release commitment over the lifetime of the contract. Rate would be fixed for the duration of the agreement, i.e. No exposure to: Employment inflation cost; and Deviation in exchange rates;

  11. Questions