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2 nd IG-Meeting Preparation of the Coordinated Physical Transmission Right (PTR) Allocation Scheme for the CEE – Region Vienna 12.07.2006.

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Presentation on theme: "2 nd IG-Meeting Preparation of the Coordinated Physical Transmission Right (PTR) Allocation Scheme for the CEE – Region Vienna 12.07.2006."— Presentation transcript:

1 2 nd IG-Meeting Preparation of the Coordinated Physical Transmission Right (PTR) Allocation Scheme for the CEE – Region Vienna 12.07.2006

2 2 Commitment of 8 TSOs from CEE-Region Common willingness of 8 TSOs to improve allocation system:  Bring better in line commercial and physical load flows (PTR allocation)  Coordinated Capacity Forecast  Firmness and netting as far as possible from the view of secure grid operation  Foundation of an independent auction office  One stop shop, direct bids between all countries involved

3 3 Time schedule 5 th April – High Level Meeting: HLM decision of 8 TSOs to establish two Working Group for further development.  2 nd May:1 st coordination Meeting of WG chairmen  19 th May: 1 st WG – Meeting Flow Based Allocation  24 th May: 1 st WG – Meeting Coordinated Auctioning  14 th June: 2 nd coordination Meeting of WG chairmen  20 nd June: 2 nd WG – Meeting Flow Based Allocation  26 th June: 2 nd WG – Meeting Coordinated Auctioning  7 nd June: 3 rd coordination Meeting of WG chairmen 11 th July – High Level Meeting: Presentation of common Working Group report to HLG and HLG decision.

4 4 Current Status Working Group „Flow Based Allocation“ – chaired by PSE  Development of concept of flow based mechanism – PTDF and Border Capacities  Investigate necessary preconditions and environment  Common network model and common data Working Group „Coordinated Auction“ – chaired by APG  Prepare new approach of commonly owned, independent and transparent auction office  Auction rules for flow based allocation  Principles for distribution of revenues WGs work together, chairs coordinate frequently their work Joint presentation

5 5 Principles of Design of CEE Auction Office Joint  the same amount of shares of the AO for each TSO  the same rights of access to and control of the AO for each TSO Independent  AO with full legal rights  No subsidiary of a TSO Transparent  Towards national authorities and market participant (clear and easily accessible market information)  auction rules and results  Toward the AO shareholders (clear and easily accessible information for monitoring)  business process

6 6 General procedures for PTR auctions PTR Auctions TSOs PTR Holder Secondary Market Scheduling Support Risk Management “online” BCs PTDF-coordination Purchase Data Sale Data System Data PTDF, ABCs, Base Cases, Auction Results (historical, actual) Auction Participants Auction Entities AO:IT-related AO: Customer related  Proposed structure is also open for further developments (e.g. OMC)

7 7 Concept of Common Grid Model for capacity calculation by an Auction Office Capacity Forecast based on  Secure grid operation as first priority  Flow based method  Daily forecast for border capacities provided by common centralised body  Final decision remains with the responsible TSO  Not considering preventive measures to increase capacities (in order to save reserves for necessary re-dispatch during real time trading)  Sensitive data should be updated periodically (e. g. wind and hydro generation)

8 8 Decisions from HLG Principle support of the HLG for further investigation on PTR-auctions and on a centralised calculation of a grid model, capacities and PDTF matrix Principle support to provide data – as far as they are available General agreement on the content of a common Position Paper Decision on a preliminary optimistic time table (implementation scenario)

9 9 PTR Allocation - Challenges on technical parameters calculation New centralised approach of common calculation activities necessary (while responsibility for SoS remains with the individual TSOs) Higher complexity of the calculation process (more parties involved – not only regional, huge amount of data,…) If adopted to the specific region strongly affected by external regions creates „ chicken and egg story” More complex information of the offered capacities for market participants (ABC plus PTDF) In contradiction with present UCTE rules on scheduling  has to be modified

10 10 Position Paper: preliminary Time Table (optimistic) Phase 1Phase 2Phase 3Phase 4Phase 5Phase 6 1) Signing Position Paper 1) Continuation of WGs tasks’ (with support from “scientific” consultant) 2) Draft concept of technical parameter calculation 3) Fixing the principles of distributing the auction incomes 4) Finishing of concept of scheduling support (and impose UCTE to modify OH P.2) 5) Finishing of elaboration of legal framework 6) Adaptation and finishing of Business Plan Identify issues for Regulators for market harmonisation 1) Board approval on concept/methodology of technical parameter calculation 2) Implementation design of technical parameter calculations (contract) Acceptance of Regulators on principles on revenue distribution Notification EC Merger regulation Approval of Regulators on the concept of technical Parameter calculation 1) Acceptance of implementation design 2) Foundation of CEE- AO 3) Finishing of Auction Rules 4) Tender for IT Approval of Regulator on Auction Rules (and on Multilateral Agreement) 1) IT-installation 2) AO staff recruiting 3) Testing phase (Trial operation) Operationalisation of CEE-AO – Starting Phase August 2006 Nov 2006Dec 2006Q1/2007 Q2&Q3 /2007 Q4/2007*

11 11 Support and decisions from Regulators Support concerning market harmonisation Approval of costs for establishing and running a common AO before establishing the entity. Support according to possible obstacles due to the EC Merger Regulation 139/2004. Acceptance of principles on revenue distribution Approval of Regulators on the concept of techn. Parameter calculation To proceed with the process according to the shown time table support and decisions from Regulators are necessary!

12 12 Outlook Serious time constraints  Capacity forecast (common grid model, IT etc.)  Data to asses external effects from adjacent regions  Decisions in Supervisory Boards of TSOs necessary  Legal procedure according EC Merger Regulation 139/2004  Future Guidelines not entered into force until now  Changes in scheduling nomination procedure necessary (UCTE OH)  Approval of regional regulators for financing the CEE-AO Preparation to prolong current solution (AO: CEPS) with changed auction rules – but to change to new system as soon as possible

13 13 Challenging exercise, but all participating TSOs are giving their highest commitment to it and are stating their willingness to make a further step forward to a transparent market integration in the CEE region.

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