Quarterly Directed Contract Information Note - Round 22

Quarterly Directed Contract Information Note

Round 22 Today, 14th March 2023, the Regulatory Authorities (RAs) are publishing an Information Paper on the quantities and prices for the "Round 22” offerings of Directed Contracts (DCs).

DCs are a part of the RAs’ market power mitigation strategy to ensure that the benefits associated with the SEM are not undermined by the abuse of market power. The purpose of these contracts is to remove the incentive on ESB Power Generation to attempt to profit from the use of market power.

Supplier eligibility for DCs will be communicated by the Regulatory Authorities to each relevant supplier and to the seller (ESB) separately.

Market participants were notified of amendments made to the process of calculating DC pricing formulae (SEM-22-017). Participants were also informed of the RAs decision to hold the Primary Subscription Window over six days.

A consultation on whether the amendment to the duration of the Primary Subscription Window should be enduring was subsequently published on 15th February 2023 (SEM-23-015). The SEM Committee are currently reviewing responses and will publish their decision in the near future. In the interim, the RAs have decided to maintain the six-day Primary Subscription Window in DC Round 22. For the avoidance of doubt, there is no obligation for any eligible supplier to avail of this option.

The DC Round 22 Primary Subscription Window is scheduled to be held for six business days from;

• Tuesday 21st - Thursday 23rd March 2023 inclusive; and

• Tuesday 28th - Thursday 30th March 2023 inclusive.

The associated Round 22 Supplemental Subscription Window will be held on Thursday 6th April 2023.

For further information please contact the Market Modelling Group (mmg@cru.ie) at the CRU or Kevin Baron (kevin.baron@uregni.gov.uk) at the Utility Regulator.