1 Auction Office establishment, antitrust issues and Project Plan IG Meeting, Vienna January 30 th...
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Transcript of 1 Auction Office establishment, antitrust issues and Project Plan IG Meeting, Vienna January 30 th...
1
Auction Office establishment, antitrust issues and Project
Plan
IG Meeting, Vienna
January 30th 2008
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State of Play
Antitrust and Merger Regulation
Scheduling Concept
Auction Rules
Service Level Agreement, Inter TSO agreement
Secondary Market
Curtailment
Revenue Distribution
Next steps
Agenda
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Project Team Agreement
Business plan, budget and shareholder‘s loan ( )
Articles of association
Bank account
Staff recruiting (Project Team) /employment contracts / accountant service
Office ( )
Founding procedure, necessary TSOs‘ confirmations, proxy issue
Antitrust and Merger/Cartel regulation issues
Service Level Agreement (inter TSO contract), Auction Rules
Software (common coordinated capacity calculation and allocation)
Communication infrastructure and IT hardware
external data transfer (MLA)
Not yet startedStartedIn implementationCompleted
State of Play
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Antitrust & Merger Regulation
The EC has denied TSOs request as it could not be proved that CAO will be a fully functioning company.
After legal consultants investigation:
Merger control rules for the setting up of a non-full function joint venture apply only in Poland and Germany.
In Hungary the National Competition Authority would, at times, deviate from the construction of the term of full-functionality as established by the EC. But this risk can be disregarded.
Therefore the following To-Dos occurred:
Draft notification paper (English) is under finalisation.
This paper will be a basis for the notification of all 8 TSOs to the German Bundeskartellamt (in German, under lead of E.ON Netz) and to the Polish antimonopol agency (in Polish, under lead of PSE-O).
Start of notification: February 2008, expected duration: 3-4 months
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Due to flow-based allocation capacity transmission rights from i.e. Poland to Slovenia can be reserved by the traders
Scheduling concept necessary, that allows sink source scheduling
Scheduling experts of all TSOs have elaborated a new scheduling concept – so called decentralised scheduling concept:
The capacity transmission right owner only announces i.e. a “Poland out” and a “Slovenia in” schedule
Every CEE TSO will match with all CEE TSOs schedules
To install the new scheduling concept the scheduling IT systems of all CEE TSOs need to be adapted
Traders will have to enhance their IT systems, too
Scheduling Concept
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Regulators requested daft Auction Rules and draft Service Level Agreement until end of February 2008.
Auction Rules (AR)
Basis document of existing AR will be taken as basis.
A comprehensive draft document has been already prepared and commented
Draft AR will be ready end of February.
Auction Rules
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Service Level Agreement
Regulates/describes the services of the AO.
Technical issues:
Technical services, curtailment, scheduling, auction income sharing, allocation, invoicing, risk management, secondary market,..
Liabilities:
TSOs AO.
Fall backs
Service Level Agreement, Inter TSO agreement I/II
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Inter TSO agreement
Regulates/describes the duties of the partners.
data exchange
scheduling (tasks and responsibilities)
auction income (keys, duration,…)
Both (draft) documents are ready end of February.
Service Level Agreement, Inter TSO agreement II/II
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Secondary Market
Further Hybrid UIOLI principle for capacity compensation scheme :
UIOLI on D-1 level,
and Resale possibility (selling back of capacities to CAO) of the capacity at D-2 level. Progressive approach for offering max. possibilities to market participants (under the
regime to be applied) and keeping planning certainty for TSOs at a reasonable level!
Full path concept (only “same” PTRs can be transferred)
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Curtailment
Different methods are under investigation.
After having first test results, calculated with on the agreed method, a refinement process will start.
Nevertheless, TSOs and consultants are of the same opinion, that curtailment methods based on optimization technique is the most appropriate one.
As the objective for such an optimized curtailment either market values or volumes can be chosen (under investigation).
We will seek further consultancy.
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Revenue Distribution
The already performed qualitative evaluation has been improved (by harmonizing the common understanding of the meaning of certain distribution keys and criteria's).
Description of different revenue distribution keys almost completed.
Based on that keys the test calculations will be evaluated.
The most suitable auction income distribution keys have been forwarded to the consultants for their expert opinion.
Now, because of agreed capacity calculation concept also quantitative analysis will start during the next month!
For discussion and regulatory remarks: “real” coordinated regional capacity calculation and allocation approach enables better regional investment coordination; so pooling of auction income (some percentage) is worth to be thought about!
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Next steps – technical issues
After HLM decisions of acceptance the MF methodology and prolongation of co-operation with consultant the road map was envisaged:
Preparation of workflow model for feasibility tests
Internal feasibility tests MF methodology and evaluation of interregional influences (centralized organization of technical parameter calculation)
Acceptance of tests
Tests with market participants
Update and approval of concept/process chain based on results of tests and consultation with Regulatory Body
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Next steps – business issues
Draft of SLA Agreement in CEE – 02.2008
Draft of Allocation Rules – 02.2008
Notification to Antimonopoly Offices – in Germany (E.ON) and Poland (PSE-O) – 02/05.2008
Agreements with external TSOs – 05.2008
Office, People, Services (Banks etc) – 03-06.2008
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Next steps - IT Tender
2008-01-08 Begin of 1st phase : European contract notice
2008-02-14 Legal deadline for expressions of interest (37 days)
2008-03-17 End of 1st phase (selection up to 10 bidders, after time of appeals)
2008-03-18 Begin of 2nd phase: Letter of invitation for an indicative tender to the
selected participants
2008-04-27 Legal deadline for expressions of interest (40 days)
2008-05/06 TIME OF EVALUATION, NEGOTIATIONS, DECISION, APPEALS
2008-06-17 End of 2nd phase
2008-06-30 Signing contract with successful bidder