Question 1.1.31

Question 1.1.31

On a power exchange, the Balancing market is embedded (same order book) in the Intraday market in which only the Transmission SystemOperator buys and sells electricity for the settlement of imbalances in the electricity system(using specific parameter in the trading platformindicating balance offers/trades – BAL order). For trading on the Balancing market the same rules as for the Intraday market applies. The only difference between these markets is a prolonged trading phase of the Balancing market (with regards to the Intraday market) for one hour, until contract expiration as shown on the picture below. With trading platformupgrade which will take place at the end of June 2016, functionality of Balancing block contract will be implemented – TSO will be able to enter the hourly and quarterly block contracts outside and inside Balancing phase, and also block contracts which start inside Balancing phase and end outside Balancing phase (Intraday trading).

1      Case1: TSO inserts buy offer for block contract 15:00 – 18:00 at 14:30 (in Balancing phase) with BAL parameter. Other market participant inserts sell offer for the same contract at 14:31 with price and volume which fully match the offer inserted by TSO. The trade match time is 14:40 (in balancing phase).

Which data should be reported in this case to ACER?

2      Case2: TSO inserts buy offer for block contract 15:00 – 18:00 at 14:30 (in Balancing phase) with BAL parameter. Other market participant inserts sell hourly offers 15-16, 16-17and 17-18 (the same time period as block contract inserted by TSO) at 14:31 with price and volume which fully match the block offer inserted by TSO (cross trade enabled – matching of block contracts with hourly and quarterly contracts). The trade match time is 14:40.

Which data should be reported in this case to ACER?

3      Case3: TSO inserts buy offer for block contract 15:15 – 15:45 at 15:05 (in balancing phase) with BAL parameter. Other market participant inserts sell offer for the same contract at 15:06 with price and volume which fully match the offer inserted by TSO. The trade match time is 15:06 (in balancing phase).

Which data should be reported in this case to ACER?

1. As is written in the TRUM, we are obliged to report offers and trades inserted/concluded outside the balancing phase. In this case, the block contract starts in the regular Intraday trading and ends in the Balancing phase. Because we cannot divide the block contract into part of Intraday and part of Balancing phase we are planning to report both block offers and trades as is inserted/matched in the trading platform.

2. In this case one block contract is matched with 3 hourly contracts and last hour of the block contract is in Balancing phase. With the same reason as it mentioned on topic 1, we are planning to report all offers (block contract and3 hourly contracts) and also all trades.

3. Since offer and trade were submitted/concluded in a balancing phase it is our understanding that these market data will not be reported to ACER.


Answer

We consider the interpretation provided above reasonable. Whenever a contract for balancing purposes cannot be separated from a contract for the supply, that contract should be reported as contract for the supply.

Updated: 
30/06/2020