The SEM Committee is today (15 March 2018) publishing an Information Paper to notify stakeholders of its decision to postpone Round 2 of the Directed Contracts (DCs), which were due to commence on Tuesday 20th March 2018. The SEM Committee has decided to postpone Round 2 of the DCs due to an error in the 2018-2019 I-SEM Validated Plexos Model (SEM-17-089), which contributed in part to higher Q1 2019 DC prices. The Primary Subscription Window and Supplemental Subscription Window for Round 2 of the DCs will now take place on the 3rd – 5th April 2018 and the 12th April 2018 respectively.
Further details on the error within the validated model is contained within Baringa Partners LLP’ Clarification Note, who completed the validation on behalf of the Regulatory Authorities. Baringa Partners LLP have also provided a revised I-SEM PLEXOS Model for 2018-19, which is now also available on the SEM Committee website.
As a result of the validation error, the SEM Committee has decided to schedule an additional supplemental round for Round 1 of the DCs for market participants who decided not to purchase Q1 2019 DC product during Round 1 of the DCs, which will take place on Wednesday 21st March 2018. Additionally, for market participants who purchased Q1 2019 DC product at an incorrect price during Round 1 of the DCs, the SEM Committee has put in place arrangements to ensure the prices paid are based on a corrected Round 1 DC pricing formulae, as detailed in the SEM Committee Information Paper.
In order to address potential queries from market participant regarding the validation error and DC prices, Baringa Partners LLP will schedule an industry conference call with market participants on the 20th March 2018 and the 29th March 2018. Market participants wishing to register for the industry conference call should e-mail Baringa Partners LLP at RAsModelValidation@baringa.com .
The SEM Committee wishes to apologise to market participants affected by this error in the validated I-SEM PLEXOS model, and the subsequent delays it has caused for Round 2 of the DCs.