I-SEM Business Liaison Group (BLG) NEMO. 14 th March 2018 Minutes & Notes

Transcription

1 I-SEM Business Liaison Group (NEMO) 14 th March 2018 Minutes & Notes Meeting Details Meeting Purpose Location Chair Secretariat I-SEM Business Liaison Group (BLG) NEMO EirGrid, Dublin / Lync / Conference Call Michael Kelly (I-SEM Project Team) Lenka Peskova; Rodica Tibirna (I-SEM Project Team) Date 14 th March 2018 Key Notes & Decisions SEMOpx Implementation Update (Michael Kelly) Michael Kelly welcomed the attendees and ran briefly through the meeting agenda. Implementation Programme, slide 4 (Anne-Marie McCague) Anne-Marie provided an update on the Solution Delivery for SEMOpx In Week 12, combined ID and DA regional functional testing was performed Regional Coupling - the Operational Agreements between SEMOpx, EirGrid, SONI and our regional partners is progressing and is due to be finalized by the end of March The GB NEMOs have considered a number of options to facilitate the go-live of the intraday aucton with both GB NEMOs. After this analysis it was acknowledged that there isn t a feasible solution that could be implemented for go-live. Based on this, Nord Pool has agreed that the intraday auction will go-live with SEMOpx and EPEX only and that EPEX and Nord Pool will work to find a solution that will allow Nord Pool to join as soon after go-live as possible. While SEMOpx is disappointed that a solution could not be found it is positive that a way forward for I- SEM go-live has been found. The solution for including Nord Pool as soon after go-live as possible is being monitored by the SEM-GB Joint Steering Committee and the Joint Implementation Group which includes CRU, UR and Ofgem. Functional testing of the intraday auctions with EPEX has commenced and this will be completed in Week 14. The procedural testing will be done in Weeks ID and DA procedural testing will be combined in Week 16. On-Boarding the application process for ECC closed on the 7 th February. The SEMOpx process closed in February as well. PCR Process complete. Page 1 of 8

2 MRC Approval Update, slide 6 (Anne-Marie McCague) Anne-Marie provided an overview of MRC Approval Update The Go-Live Readiness Report from MRC OPSCOM and MRC JSC to be approved by 2 April A change request was submitted in 2016 and subsequently a Terms of Reference for the SEM-GB MRC Extension Task Force that outlined the contents of the of the Go-Live Readiness Report, the contents list was validated a year ago. The below are the 5 areas we need to report onto to show that we are technically ready to go live with our first DA Auction on 22 nd May. 1. TSO cost coefficients => this is how the IC are modelled within the algorithm. We submitted this last May and it has been approved. 2. Full integration and simulation testing phases => 4 tests have been run with the MRC and all have been successful. This shows that including the SEM in the MRC operations does not pose any risk to the solution. 3. Legal impact assessment and overview of the local arrangements in SEM-GB => the legal impact assessment showed that we can sign the MRC Day-Ahead Operations Agreenent without any changes. The Legal Working Group submitted an overview of the local arrangments to the MRC and has received approval of this submission. 4. Adaptation of MRC Procedures the necessary changes to the procedures were submitted before testing and validated. Testing showed that no further changes werer needed. Report on local arrangements and regulatory approval => we have a suite of agreements on SEM side and another one on the SEM-GB side. We have to be able to report that all these agreements are in place. Unfortunately there have been delays for all those agreements on the GB side, within SEM and for the SEM-GB Operational Agreement. When we submit our Go-Live Readiness Report, we will not be able to report these agreements as complete. Therefore there is a risk that we may receive conditional approval until these agreements are complete. If this happens the public milestone on the 2 nd of April will turn amber. However, we consider this a low risk as long as our test report is approved and the MRC is comfortable with the technical aspects of the solution. There are measures in place to get the agreements completed with minimum delay. We have requested that the RAs provide a letter of support for the SEM joining the MRC. Previous Meeting Minutes & Actions, slides 8-9 (Anne-Marie McCague) Action #12 open, this project is in progress and we will report when it is finalised. Action #287 closed, this was dealt with directly with the MP who raised the question. Action #307 closed, this was available from 19 th February. Action #308 open, sample of daily report demonstrated. Action #309 closed. Action #324 closed, we will give you updates today and will keep you informed of how NP and EPEX are getting on with the timeline implementation. Q. Have the UK MPs been informed? A. Anne-Marie provided the response and advised this is one of the actions. EPEX discussing with their internal communications team, to identify a time line for that. We have a Go-Live Readiness workshop next week (Wednesday 28 th March 2018) between all SEM-GB Parties and communications is part of this workshop. We will keep you informed. Action #325 closed, it is being addressed in the next version of Operating Procedures. Action #326 closed, it is being addressed in the next version of Operating Procedures. Action #327 closed, the Website to be available by end of March I-SEM Data Publication Guide Issue 1.3 has the specifications for most reports. There are some outstanding reports for which SEMOpx is waiting to finalise their specifications. Page 2 of 8

3 Action #333 open, response in progress, query sent to EPEX SPOT. Action taken (following last BLG meeting) The frequency of the reports and the time during the day? Q. What fees will appear on which report? A. Anne-Marie provided the response and acknowledged the inconvenience of not being able to share the version of the demonstrated report. Post meeting note: Market Participants will receive the daily trade report and payment report at 15:50 GMT and a montly invoice report. Information on these reports can be found on the ECC website here: Q. Will the MT data be included on the website? A. Michael Atcheson provided response. Discussions ongoing in MT. There are 2 versions of the website. Michael A. to check with Seve and confirm. The MT sites (SEMO and SEMOpx) will cut over to the go-live, enduring websites. However, the legacy websites will continue to operate for re-settlement. Q. Following the discussions with EPEX, will the 15:30 auction be kept? A. Anne-Marie provided the response. EPEX have previously stated that the 15:30 auction is important to their GB members. EPEX has not communicated an intention to remove this auction from their offering. FX Rate - Update, slide 11 (Anne-Marie McCague) The issue is that the GB Parties did not want to accept the timing around the FX Rate. The original design was for the rate is published on the ECB website on D-2. The current design in GB is that Nord Pool provides a rate at 10:45. This is used by Nord Pool, EPEX, Britned and NGIL. There is a potential cost associated with FX rate due to the potetntial difference between the rate applied to the trades compared to the rate used during settlement. Since the ECB rate is set on D-2 there is a greater exposure to this potential cost of FX compared to the rate used in GB today. Therefore, the GB Steering Committee (Nord Pool, EPEX, Britned and NGIL) are not willing to accept the application of the ECB rate in GB. A number of scenarios were reviewed and SEMOpx has been proposed a rate that is closer to gate closure but is calculated in a transparent manner. This is the BFix rate from Bloomberg set at 10:00 This proposal has been sent to the GB Steering Committee for approval. Once we receive approval we will implement the system changes and seek an amendement to the TSC using the established process. We also need to perform testing at a regional level. Q. Will the report be published with the Exchange Rate? A. Yes, we have not finalized the timings yet, but it will be the same report today from SEMO, but will be as soon as possible after 10 am. Q. Will the timing of publication be codified A. Yes, it is in the TSC. SEMOpx and EPEX Operating Services for Trading (Arnaud THOMAS from EPEX) The following topics were covered: 1. EPEX company overview EPEX SPOT created in 2008, roots going back to 1998 Societas Europaea headquartered in Paris Page 3 of 8

4 535 TWh of traded volumes in 2017: 464 TWh on the Day-ahead market, 71 TWh on the ID market Over 285 Exchange Members Offices in Amsterdam, Bern, Brussels, Leipzig, London and Vienna Arnaud provided and overview of the Shareholder structure, Information and Financial Flows, The markets of EPEX SPOT and Market review 2017: Volumes and delivery zones. 2. EPEX in SEMOpx Eirgrid and SONI choose EPEX to deliver services required to support the NEMO functions for I-SEM, namely the trading operations of the day-ahead and intraday markets 1 DA auction coupled with MRC 2 ID auctions coupled with GB 1 ID local auction (NI+ROI) 1 Local continuous markets (only unlimited capacity between ROI and NI) 3. Focus on Market Operations Arnaud provided and overview of the EPEX Market Operations Organisation and the Market Operations Core Values EPEX SPOT Trading Systems were outlined and the Auction process map explained Arnaud run through the Timeline of the MRC Normal process Following topics presented: Second Auction within the MRC Coupling, Partial Decoupling within MRC Generic concepts, PCR High Level Design: coordinator process, Trading on behalf (available for MRC auction only),submission On Behalf Tool (available for MRC auction only). 4. Member interaction (Market Operations) For all market operations queries i.e. that relate to the bidding and operation of the auctions or the continuous trading, or that relate to the trading systems e.g. password resets, access issues, question on trades submitted, API, Trading on Behalf, fallback procedures, etc.) - 1 SEMOpx operations address - 1 phone number (select option for auctions or continuous) All operators trained on SEMOpx markets Incoming s continuously monitored by Market Operators Daily check of not fully answered queries during morning call with 3 locations and dispatch to Market operators for resolution For urgent requests (ToB, password reset etc ) please favour phone calls to ensure timely resolution Phone lines available 24/7 for urgent queries For all non-market operations queries e.g. membership, registering traders, setting up units in ETS or M7, product design, invoicing, rules, or other general queries on the SEMOpx markets. 1 SEMOpx information address Same phone number as for SEMOpx market operations (but select option general queries ) 5. Path way to successful Operations Some issues have occurred in the Market Trial related to DA and ID Auction Markets. EPEX are taking steps to remedy these and ensure they are not encountered in production. Key issues Cause Remedial action ETS API not available High number of connections Scaling of the API server will take into account the learnings from the Market Trial and ensure it can support the targeted number of connection and evolutions Page 4 of 8

5 Market Order Book closed at times different from agreed MT runsheet MT auction times are different from production ones. Manual errors made. Order Book closure is an automated process in production ETS not accessible Issue in ETS simulation release New ETS version fixing the issue has been delivered and will be used in production In parallel with Market Trial execution, several other activities are performed in order to ensure a successful Go Live: Systems functional testing to ensure quality and reliability of the systems Procedural testing (locally and with coupling partners) to ensure quality and completeness of operational check lists and procedures Operators training to ensure mastering of processes and procedures by entire team Arnaud noted some questions and requests from MPs in the room. Action: The ATS API also doesn t allow to pull down live trading limit. While visible on ETS client cannot pull down via API. (Michael Atcheson) SEMOpx Interim Consultative Forum Michael Kelly provided an overview of the SEMOpx agenda. Status Update on Modifications in Progress, slides (Michael Kelly) Michael gave a brief overview of the Update on Modifications in Progress status. It has been mentioned that a number of the modifications were submitted to the RAs for their consideration Market Coupling Facilitator Rules Changes are goin to be sent to RAs today On the Operational Procedures, Michael advised this is being discussed and the non-confidential responses will be published in the next few days. It has been noted that linking the liability caps to charges is reasonable in a service arrangement Liability caps and trading fees calculations were explained. The amendments to the text were explained. In relation the the Liability Caps, Michael thanked the respondents for their feed-back. Comments and the responses will be published in the next few days. Regional Fallback Procedure, slides (Anne-Marie McCague) Anne-Marie provided more details relating to the Regional Fallback Procedure, in addition to Arnaud s presentation. It was noted that the GMT time is used on the timeline. The ACER approved Day-Ahead Firmness Deadline is 60 minutes prior to gate closure the IC becomes responsible for delivering the capacity. Up until 10 am 60 minutes before they can change the capacity, if they need to and the NEMO will accept it. After 10 am they are responsible, so if the NEMO fully allocates them must deliver the capacity or they must have arrangements in place if they can t deliver for a reason. The procedural Target Time for the the capacity being sent to SEMOpx is 90 minutes before gate closure since The process detailing breaching the Price Threshold was explained. Where Price Thresholds are breached in the day-ahead, the NEMOs may re-open the order books for 10 mins to run a Second Auction. Where Price Thresholds are breached in the intraday auction, the auction will be cancelled i.e. Page 5 of 8

6 no results will be published. This is due to time constraints due to the proximity of the intraday auctions to delivery time. Causes and timelines for partial and full decoupling were explained. If decoupling happens prior to gate closure a local auction will be run. Q. On the Incident Committee, all NEMOs of all is mentioned, is this the effective region of MRC? A. Arnaud answered Yes, all and all NEMOs that are members of the MRC are invited to the Incident Committee Dermot to look at the wording in the Rules - the auction results? 3000 minus 500. Auction curtailment (Michael A, Dermot added to the response) Operating Procedures, slides (Dermot Campfield) Dermot provided a brief overview of the SEMOpx Operating Procedures, outlining the main changes introduced in the latest document version. Final draft version has been issued for consultation on 9 th March. The procedures have been updated to reflect participant feedback, as well as other required changes identified by SEMOpx. A number of questions were raised on the topic of governance of the Data Publication Guide and SEMOpx system releases. It was confirmed at the BLG that SEMOpx are reviewing this and intend to address this topic in the Operating Procedures. Dermot gave an update on the Manifest Error (trade recall) process for the Intraday Continuous Market. A wider discussion took place on this topic centering around:the timeframe in which the matched trade can be recalled (Answer: no later than 5 minutes after the trade has been matched and no later than 20 minutes prior to Order Book Closure for that trade); o What are the timeframes in which a matched trade can be recalled? (Answer: A matched trade can be recalled in the system no later than 5 minutes after the trade has been placed; and no later then 20 minutes before the Order Book closes, as relevant to the matched trade); o Can the party to the recall reject a request to recall the trade? (Answer: no, once the recall has been placed and if it is submitted within the aforementioned timeframes then the request will be approved); o Do participants need to contact anyone to activate the process (Answer: this is done entirely within the system, there is no requirement to contact SEMOpx) o Are there any fees associated with the process (Answer: there are currently no charges associated with this procedure). Dermot outlinedthe next steps to the SEMOpx Procedures. MPs were again encouraged to provide feedback in respect of the updated document, the deadline for submitting is 29 th March. The approved document shall be published by 27 th April Any changes to the procedures post the final approved version will follow the SEMOpx Interim Committee modifications process. Q. A question was asked on the process by which Complex Orders for the Intraday Auctions would be implemented? A. It was advised that SEMOpx market design changes would be conducted in accordance with the Exchange Committee process. Clearing House Actions to Minimise Exposures, slides (Nigel Thomson) The Rationale behind Clearing House Actions to Minimise Exposures was explained and amendments were presented. MPs were again encouraged to provide feedback in respect of the proposed modification an provided details of how to comment is to be circulated to the BLG distribution list. Page 6 of 8

7 Actions Existing Actions From Previous Meetings Remaining Open Action 12: Project Team to provide details on AOLR charging arrangements when available Action 308: SEMOpx to confirm report format from ECC in relation to SEMOpx fees. Including clarity on currency aspect for invoicing for fees. Action 333: EPEX notification of the GB participants - timeline New actions from 14th March BLG Action 335: The frequency of the reports and the time during the day? Action 336: The ATS API also doesn t allow to pull down live trading limit. While visible on ETS client cannot pull down via API. Page 7 of 8

8 Appendix: Attendee List Name In Person Barry Hussey David Gascon Denis McBride Diarmuid Murphy Donal Courtney Fergal O Donnell Glenn Hogg Mariela Atanasova Mike Kelleher Norma Kelleher Paraic Higgins Sinéad O'Hare Aidan Cummnins Francis Mallon Wallace McKee Arnaud THOMAS Anne-Marie McCague Michael Kelly Michael Atcheson Nigel Thomson Dermot Campfield Via Lync/Conference Call Adele Woods Chloe Kinsella Conal Brennan Darrell Thomas Peter Vandendriessche Thomas Finlay Thomas O'Sullivan Tim Cox Tom Poole Company CRU Bord na Mona AES Tynagh Energy Brookfield Erova SSE CRU Bord Gais Energy ESB Corporate Centre ESB Power NI Energy Ltd Power Procurement Business ElectroRoute Viridian Group Power NI EPEX Bord na Mona Cenergise Indaver Ireland SSE Indaver Dunmore Wind Farm Aughinish Moyle Interconnector Limited SSE Page 8 of 8