Mod 14: Foreign Exchange Rate 25 April 2018

Proposed Modification SEMOpx is proposing that the timing of the SEMO Foreign Exchange Rate Report is changed from 17:00 the prior to Gate Closure 1 (i.e D-2) to 11:00 the day of Gate Closure 1 (i.e. D-1) This will allow for the same rate that will be applied to SEMOpx’s day-ahead and intraday auctions to be applied to the balancing market

Background The SEM-GB Regional Project - coupling project between the SEM and Great Britain for the day-ahead (DAM) and cross-border intraday auctions Regional Partners: EPEX Spot, Nord Pool, Mutual Energy, EIDAC, EirGrid, SONI and SEMOpx Through discussions with the Regional Partners it was agreed that the NEMOs applying a single FX rate to the SEM and GB region was the most efficient approach Avoids the risk of increased costs of FX Procedurally more straight forward Avoids the need for additional agreements Avoids market participants in both SEM and GB needing to manage two rates A number of options were reviewed including using the ECB rate published on D-2, Bank of England (09:30 GMT D-1), Bloomberg (10:00 GMT D-1) Ultimately it was agreed that SEMOpx would adopt the rate that is in use in GB today as provided by Nord Pool set at 10:00 GMT Nord Pool sources the rate from Nordea – one of the largest banks in the Nordics Rate has been in use in GB for a number of years Applying a rate closer to Gate Closure for the DAM minimises the exposure to costs of FX

Code Objective Furthered Code objective no. 2: to facilitate the efficient, economic and coordinated operation, administration and development of the Single Electricity Market in a financially secure manner. Economic benefit: Using a rate that is set closer to gate closure will minimise the exposure between the rate used for the trades and the rate used for settlement Efficient coordinated operation and administration: Applying a coordinate approach between SEMO and SEMOpx means that market participants in the SEM are only dealing with one FX Rate across the SEMO and SEMOpx markets

Proposed Modifications TSC Section Modification Part B G.1.3.3 The Market Operator shall, in relation to each Trading Day, publish a Trading Day Exchange Rate between euro (€) and pounds sterling (£) by 17:00 11:00on the day prior toof the corresponding Gate Closure 1. Part B Glossary Trading Day Exchange Rate: means the exchange rate between pounds sterling and euro for the next Trading Day set at 17:00 11:00 on the day before the Trading Daythe day of the Gate Closure 1 published under paragraph G.1.3.3. Part B: Agreed Procedure 6: Data Publication and Data Reporting, Appendix 2, Data Reports Publication / Data Report Name Class Timing Subscr -ipt Availab -le via BMI Confiden tiality Vali- dity Daily Trading Exchange Rate D Two One days prior to the Trading Day - Y Member Public   Part B: Appendix E, Table 4 – Data publication list part 4: updated daily in advance of the Trading Day Time Item / Data Record Term Subscript By 11:0017:00 on the day prior toof the Gate Closure 1 in respect of the Trading Day Trading Day Exchange Rate between euro (€) and pounds sterling (£) -