SEM Regional Integration Decision Paper FUI Stakeholder Group Meeting 16 June 2010

SEM Regional Integration Project Interconnector Issue Paper - April 2009 Consultation Paper – 23 September responses received - Additional meetings with all respondents. Timing to coincide with East / West go live 2012 and other European developments Decision Paper – 3 March Workplan and Next Steps Objectives: –Compliance with existing EU regulations –Maximise efficient use of interconnector capacity in SEM through rule changes –Market rule changes to accommodate East West IC –Ensure SEM compatibility with European target models for cross border trade

SEMC Decision Forward Explicit Auctions Compatible auction platform for the E/W and Moyle ICs which RAs approve Should facilitate coordination of auctions in region - IFA and BritNed Should ensure compatibility of auctions across timescales including shorter term Intra Day Working Group within Mods process to develop a means of intra-day trading for SEMC approval by end 2010 –The arrangements on the IFA and BritNed –The incentives to trade intra day –The pros and cons of multiple gate closures –EU regulations on UIOLI/UIOSI

SEMC Decision Day Ahead Coupling SEM day ahead solution required for integration RAs to explores during 2010 a viable means of establishing a day- ahead price in the SEM RAs to draft TSC modifications as appropriate Address liquidity issues SO-SO Balancing SOs should be able to access power at competitive prices for security of supply and balancing reasons Compatible with regional efforts and intra day solution

SEMC Decision Barriers to Trading and European Developments Where possible in cooperation with regional regulators and TSOs to understand, reduce and remove identified SEM barriers to trade Triads and Inter TSO Compensation Scheme Active participation in ERGEG and regional FUI groups

Next Steps Progress SEM workstreams: –Explicit Auctions –Day Ahead –Intra Day –Barriers to Trading FUI Coordination Framework Guidelines and Network Codes East West Interconnector – July 2012

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