1. Retail Market Assurance Services for the Irish Electricity Market
IGG 16th April 2009

2. Assurance Activities One re-qualification ongoing
One new market segment application
One completed re-qualification – approved by CER
Three Small Supplier applications
DR 0172 (Small Supplier Definition)
DR0163 (Risk-based Assurance)
IPT Scenarios

3. DR 0172 Small Supplier Definition
Change definition of “small supplier” to one that uses only Webforms to generate market messages
Downgraded from MCR to DR at March IGG. Participants asked to feedback comments and discuss/agree at IGG Conference Call
In advance of March IGG Conference Call comments received from one Supplier in support of change
Given that DR has been discussed a number of times at the IGG, the reservations of ESB IE, and the fact that no consensus can be reached we have submitted DR to CER for a decision based on feedback received to date
The current definition of a small supplier (as in the Assurance Strategy) is as follows:
A supplier with up to 200 metering points registered or up to10MW power supplied at peak demand and intends to work within these thresholds for the foreseeable future.
This threshold was set during the Market Opening Project in 2004 for the particular requirements of that period and may be viewed as somewhat over-restrictive in today’s environment. It has recently been increased on a one-off basis for a particular supplier rather than subject them to further assurance and it is envisaged that this situation will recur.
It is proposed that the term “Small Supplier” is redefined and based on a more flexible criterion, as follows:
“A Small Supplier is a Supplier who utilizes only Webforms (or directly equivalent facility) for the creation of all outgoing Market Messages.”

4. DR 0163 Risk Based Approach
Change from fixed process to flexible process including a risk-based approach and introduce post-live stage (CME)
Airtricity agreed to sponsor DR at March IGG
DR remains under development and to be presented at next IGG
In the GB Electricity Market a risk-based approach has recently been introduced and has been applied to several market participants. This allows greater flexibility for the appropriate application of assurance techniques in situations such as:
A supplier whose aspirations are for only low numbers of metering points and who are willing to accept a threshold on registrations, above which further Assurance would be obligated
A new supplier that is utilizing systems, processes and staff that are already operating in the market
A new brand for an existing supplier
The above could be viewed as lowering the risk to the market whereas their corollaries could be seen as indicating higher risk. Controlled Market Entry (CME) is an initial period of market operation by Suppliers under agreed conditions e.g. threshold on the number of registrations that can be initiated in a given period. This is followed by an audit after which the conditions may be lifted or modified. It is suggested that the risk-based approach together with CME might be applied in Ireland and that this could facilitate a shorter time to market, with less overhead, for new low-risk Suppliers but with an assurance toolkit that can also mitigate operational risk for Suppliers competing in the (large-scale) domestic sector.

5. IPT Scenarios
Gemserv in discussion with RMDS 5

6. Questions & Discussion.