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Priority issues for the French-UK-Irish regulators What is expected from TSOs?

Priority issues for the French-UK-Irish regulators What is expected from TSOs?. 30 May 2006. To increase trade between adjacent markets and therefore have a more efficient use of the interconnectors. Cross-border congestion management. Compliance with the CM guidelines

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Priority issues for the French-UK-Irish regulators What is expected from TSOs?

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  1. Priority issues for the French-UK-Irish regulators What is expected from TSOs? 30 May 2006 To increase trade between adjacent markets and therefore have a more efficient use of the interconnectors

  2. Cross-border congestion management • Compliance with the CM guidelines • UIOLI, firmness, compensation scheme, use of auction revenues, minimum reserve price, etc. • Improvement and Harmonization of auction rules • Between North-South, Moyle and IFA interconnectors • With existing rules on continental interconnectors • Implementation of a coordinated explicit auction mechanism (same set of auction rules, timeframes, etc.) • To facilitate competition on the regional market • And develop integration of the F-UK-I electricity markets

  3. Intraday and Balancing trade • Implementation of a simple specific allocation mechanism for cross-border intraday trade • To offer a greater flexibility to market actors • To optimize the utilization of cross-border capacities • Integration of balancing mechanisms • To enhance competition in the real-time market • To enhance stability of the network • To reduce the TSOs’ overall balancing costs

  4. Wholesale market Transparency • Assessment of current situation across the region in regards to the Congestion management guidelines : • Information on the interconnections (e.g. capacities, use of congestion rents, etc.) • Assessment of current situation across the region in regards to the draft ERGEG Transparency guidelines • Assessment of any constraints on TSOs in meeting the ERGEG GGP • Proposal to achieve a level-playing field

  5. Main objectives • Discuss the 3 identified first priorities and determine precisely for each priority what has to be achieved -> High level definition of a common “roadmap” • Discuss further improvements to be investigated -> Potential use of implicit auctioning -> Other improvements?

  6. Back-up slides

  7. French current situation F-B : Exp. Auction B-F : Exp. Auction F-G : Exp. Auction G-F : Exp. Auction F-UK : Exp. Auction. UK-F : Exp. Auction « Market-based » coordinated F-Ch : No commercial capacity Ch-F : No congestion « Market-based » non coordinated Non « market-based » By the 1st of June 2006 F-I : - 50% Exp. Auction - 50% by Terna I-F : No congestion F-S : Exp. Auction S-F : Exp. Auction

  8. Next steps: implementation of main action points foreseen in the 3 roadmaps CRE-CREG-DTe CRE-FNA CRE-E control Secondary Capacity markets Cross-border intraday and balancing trade Cross-border capacity calculation method Harmonization of cross-border auction rules

  9. Main expectations from the Regional Initiatives • UK-Ire-F region: • Harmonization of IFA auction rules with those currently implemented on other links (Implementation of the UIOLI principle and of a specific intraday allocation mechanism) • Central Western Region • Implementation of the two roadmaps (CRE-CREG-DTe, CRE-FNA) • South Central Region • Implementation of a coordinated explicit Auction with Italy

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