The SEM Committee decided that a Modification to the Trading and Settlement Code to facilitate intra-day trading in the SEM should be developed and submitted to the SEM Committee by the end of 2010. This Modification was to address specific issues raised by the European Commission relating to the SEM regarding the inability for market participants to ‘take part in intraday trade after the issuing of the indicated or actual day-ahead production schedules’ and the apparent lack of coordination of congestion management procedures.
Therefore, on 16th March 2010, the Regulatory Authorities submitted Modification 18_10 Intra-Day Trading to the Modifications Committee for their consideration. The Modification was subsequently developed through the course of seven working group meetings with market participants. The Modifications Committee unanimously approved the high level design of the Modification on 25th November 2010.
The high level design was presented to the SEM Committee in November 2010 for its consideration. The SEM Committee agreed that the Modification should be brought to the January 2011 meeting of the SEM Committee along with the associated costs and benefits. The below note sets out the SEMO (and TSOs) proposed costs of introducing intra-day trading into the SEM and an estimation of the social welfare gains from increased trading across the Moyle and East West Interconnectors.
In conclusion, the SEM Committee has reviewed the proposed costs and estimated benefits of the introduction of additional gate closures in the SEM and decided that on balance, and in combination with the fact that within day re-allocation of interconnector capacity is essential for compliance with the congestion management guidelines, this change to the SEM should be implemented.
Any queries on this note should be addressed to Philip Newsome (pnewsome@cer.ie) and Jean Pierre Miura (JeanPierre.Miura@uregni.gov.uk)