Introduction 1 · matching algorithm 1 Introduction Pursuant to Article 9(6)(g) and 37(5) of the...
13
ACER — Agency for the Cooperation of Energy Regulators ACER Decision on Algorithm methodology: Annex IV Evaluation of responses to the public consultation on the proposal for the price coupling algorithm and for the continuous trading matching algorithm 1 Introduction Pursuant to Article 9(6)(g) and 37(5) of the CACM Regulation, all NEMOs submitted the amended proposal regarding the price coupling and continuous trading matching algorithm (‘the Amended Proposal’) to their respective regulatory authorities for approval. The date on which the last NRA received the Amended Proposal was 1 December 2017. The regulatory authorities agreed to request the Agency to adopt a decision on the Amended Proposal, because they were not able to agree on all provisions of the Amended Proposal as described in the body of this decision. Therefore, in accordance with Arlicle 9(1 2) of the CACM Regulation and Article 8(1 ) of Regulation (EC) No 71 3/20091 , the Agency became responsible for adopting a decision concerning the Amended Proposal as of 30 January 2018. In order to take an informed decision on the Amended Proposal, the Agency launched a pubic consultation on 26 April 2018 inviting all interested parties to express their views on potential amendments of the Amended Proposal. The closing date for comments was 1 8 May2018. More specifically, those potential amendments covered the following three topics: Topic I: Application of corrective measures to maintain the algorithm performance: (i) What is your opinion on the approach proposed by NEMOs to achieve and maintain the algorithm performance during and after the prototyping phase? (ii) Which amendments would be needed to the Amended Proposal to make the application of corrective measures compliant with the CACM Regulation? Topic II: Metrics and thresholds to assess and monitor the algorithm performance with regard to its optimality, repeatability and scalability: (iii) Do you agree that NEMOs, in coordination with TSOs, are best placed for establishing the set of metrics and indicators to monitor the performance of the algorithm? How to insure the independence of the monitoring process? 1 j L211, 14.8.2009, p. 1. Agency for the Cooperation of Energy Regulators Trg Republike 3 Ljubljana - Slovenia
Transcript of Introduction 1 · matching algorithm 1 Introduction Pursuant to Article 9(6)(g) and 37(5) of the...
ACER— Agency for the Cooperation
of Energy Regulators
ACER Decision on Algorithm methodology: Annex IV
Evaluation of responses to the public consultation on the proposalfor the price coupling algorithm and for the continuous trading
matching algorithm
1 Introduction
Pursuant to Article 9(6)(g) and 37(5) of the CACM Regulation, all NEMOs submitted theamended proposal regarding the price coupling and continuous trading matching algorithm(‘the Amended Proposal’) to their respective regulatory authorities for approval. The date onwhich the last NRA received the Amended Proposal was 1 December 2017.
The regulatory authorities agreed to request the Agency to adopt a decision on the AmendedProposal, because they were not able to agree on all provisions of the Amended Proposal asdescribed in the body of this decision. Therefore, in accordance with Arlicle 9(1 2) of the CACMRegulation and Article 8(1 ) of Regulation (EC) No 71 3/20091 , the Agency became responsiblefor adopting a decision concerning the Amended Proposal as of 30 January 2018. In order totake an informed decision on the Amended Proposal, the Agency launched a pubicconsultation on 26 April 2018 inviting all interested parties to express their views on potentialamendments of the Amended Proposal. The closing date for comments was 1 8 May2018.
More specifically, those potential amendments covered the following three topics:
Topic I: Application of corrective measures to maintain the algorithm performance:
(i) What is your opinion on the approach proposed by NEMOs to achieve andmaintain the algorithm performance during and after the prototyping phase?
(ii) Which amendments would be needed to the Amended Proposal to make theapplication of corrective measures compliant with the CACM Regulation?
Topic II: Metrics and thresholds to assess and monitor the algorithm performance with regardto its optimality, repeatability and scalability:
(iii) Do you agree that NEMOs, in coordination with TSOs, are best placed forestablishing the set of metrics and indicators to monitor the performance of thealgorithm? How to insure the independence of the monitoring process?
1j L211, 14.8.2009, p. 1.
___________________________________
Agency for the Cooperation of Energy RegulatorsTrg Republike 3
Ljubljana - Slovenia
?iCERAg’ncy for the Cooperationof tncrgv Regulato)rc
(iv) Should the Amended Proposal include a minimum set of metrics andthresholds, which can be complemented over time to support furtherimprovement in the performance of the algorithm?
Topic Ill: Approach towards the enduring algorithm solution:
(v) Do you consider the minimum requirements for the enduring algorithm solutionas sufficient and compliant with the CACM Regulation?
(vi) Do you think that NEMOs are best placed and/or able to strike a balancebetween meeting the market participants’ needs in terms of flexibility of theproducts and ensuring that the algorithm is robust and compliant with CACMRegulation?
2 Responses
By the end of the consultation period, the Agency received responses from 1 0 respondents.
This evaluation paper summarises all received comments and responses to them. The tablebelow is organised according to the consultation questions and provides the respective viewsfrom the respondents as well as the response from the Agency how their comments were takeninto account.
2/13
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type
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ual
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res
and
chan
ge
reques
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sw
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prod
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edon
anti
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ctiv
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eof
the
indi
cato
rsfo
rm
onit
orin
gth
eal
gori
thm
perf
orm
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are
desc
ribe
din
mor
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tail
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ore
spec
ific
desc
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ofva
riou
sty
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ofin
dica
tors
will
bead
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Res
ponden
ts’
vie
ws
AC
ER
vie
ws
Ques
tio
n1
: Wha
tis
your
opin
ion
onth
eap
pro
ach
pro
pose
dby
NE
MO
sto
achie
ve
and
mai
ntai
nth
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form
ance
3/13
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Ag(
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Reg
ulat
ors
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vour
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ucts
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SE
cann
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ach
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asit
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mpl
iant
with
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tin
tern
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ms
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rvis
edby
inde
pend
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mis
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rim
plem
enta
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tim
elin
esan
dtr
ansp
aren
cyre
gard
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impl
emen
tati
onof
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inte
rim
and
endu
ring
solu
tion
san
dth
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ofco
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mea
sure
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sim
ulat
ion
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for
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ket
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icip
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rst
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men
tsco
ncer
ning
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ques
tion
.
the
algo
rith
mm
onit
orin
gm
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dolo
gyth
roug
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dm
ent
ofth
eA
lgor
ithm
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hodo
logy
.
8re
spo
nd
ents
prov
ided
anan
swer
toth
isques
tion.
The
follo
win
gsp
ecif
icco
mm
ents
wer
era
ised
:
a)B
DE
W:
Any
mea
sure
shou
ldke
epin
min
dto
prom
ote
liqui
dm
arke
tsan
dto
prov
ide
stab
lean
dro
bust
mar
ket
mec
hani
sms
toen
forc
etr
ust
with
mar
ket
part
icip
ants
.
b)EA
Iis
mis
sing
ade
scri
ptio
non
how
NE
MO
sw
illen
sure
the
appl
icat
ion
ofco
rrec
tive
mea
sure
sin
ano
n-di
scri
min
ator
yw
ay.
c)E
DF:
Cor
rect
ive
mea
sure
ssh
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beof
tem
pora
ryna
ture
and
shou
ldno
tpr
even
tN
EM
Os
from
achi
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gth
eir
pert
orm
ance
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ets.
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endu
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ncy
agre
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ithth
eco
nce
rns
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rrin
gto
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and
deta
ils
onth
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ibed
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cess
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plyi
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tive
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s.T
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eA
genc
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draf
ted
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cle
cove
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corr
ecti
vem
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res
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ovid
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clea
rer
desc
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mea
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sas
afo
rmof
chan
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req
ues
tw
ithth
eai
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perf
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ofth
eal
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seof
unan
tici
pate
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atio
n.T
heA
genc
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ovid
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dex
haus
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las
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s
Res
po
nden
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vie
ws
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ER
vie
ws
Ques
tio
n2:
Whi
cham
endm
ents
wou
ldbe
nee
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toth
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ded
Pro
posa
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sure
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mpli
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hth
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AC
MR
egula
tio
n?
4/13
AC
ER
—.‘
\gn
cy
orth
Coopra
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Lnc
rgv
Reg
uta
tor
solu
tion
ofth
eal
gori
thm
ssh
ould
guar
ante
eth
efu
ncfl
onaU
ties
and
the
per[
orm
ance
pro
pose
dby
NE
MO
san
dap
prov
edby
regu
lato
ryau
thor
ifie
s,ta
king
into
acco
unt
the
nee
ds
ofm
arke
tpa
rtic
ipan
tsan
dth
eob
ject
ives
ofth
eC
AC
MR
egul
afio
n.T
hem
axim
umpe
riod
inw
hich
corr
ecti
vem
easu
res
can
beap
plie
dsh
ould
becl
earl
yde
scri
bed
asth
epe
riod
inw
hich
NE
MO
ssh
all
defi
ne,
test
and
deli
ver
the
endu
ring
solu
tion
sto
solv
eth
eun
anti
cipa
ted
impa
cts
ofce
rtai
nfu
ncti
onal
itie
son
the
algo
rith
mpe
rfor
man
ceta
rget
s.
d)E
nel:
Mor
ede
tail
son
the
corr
ecti
vem
easu
res
and
the
way
they
will
beu
sed
are
nec
essa
ry.
App
lyin
gco
rrec
tive
mea
sure
sup
to6
mon
ths
inth
ein
dust
rial
isat
ion
ph
ase
toso
lve
unan
tici
pate
dim
pact
son
Alg
orith
mP
erto
rman
cese
ems
too
long
.T
heap
pare
ntly
unli
mit
edpo
ssib
ilit
yof
corr
ecti
vem
easu
res
usa
ge
inth
epr
otot
ypin
gphas
esh
ould
beex
plai
ned
and
som
ehow
cont
roll
ed,
taki
ngin
toac
coun
tth
atth
isin
itial
ph
ase
coul
dla
stlo
ngti
me.
e)E
ni:
For
the
avoi
danc
eof
deco
upli
ng,
corr
ecti
vem
easu
res
coul
dbe
intr
oduc
edto
ensu
reth
eco
rrec
tfu
ncti
onin
gan
dpe
rfor
man
ceof
the
algo
rith
mas
wel
las
the
repe
atab
ilit
yan
dsc
alab
ilit
yre
quir
emen
ts.
The
oper
atin
gm
etho
dsfo
rus
ing
the
algo
rith
mm
ust
betr
ansp
aren
tan
dre
liab
le.
f)E
NT
SO
-E:
As
corr
ecti
vem
easu
res
will
have
anim
pact
onth
eT
SO
sop
erat
ion
ofth
egr
id,
TS
Os
shou
ldbe
invo
lved
inth
eco
rrec
tive
mea
sure
sre
late
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thes
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ties
.C
AC
Mfo
rese
esth
atT
SO
san
dN
EM
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shou
ldjo
intly
orga
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the
day-
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aym
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tof
the
SDA
C
for
com
mun
icat
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toth
epu
blic
and
sub
seq
uen
tre
port
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Aft
erth
efu
llim
plem
enta
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eal
gori
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ese
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vem
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res
aim
ing
tom
aint
ain
adeq
uat
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man
ceof
the
algo
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ldbe
limite
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6m
onth
san
dsh
ould
not
beex
tend
ed.
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Age
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deci
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onth
ese
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tra
ther
clar
ify
the
go
ver
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cisi
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akin
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thes
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tive
mea
sure
s(b
yin
clud
ing
also
TS
Os)
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hich
shou
lden
sure
that
the
inte
rest
ofm
arke
tpa
rtic
ipan
tsar
eta
ken
into
acco
unt.
Res
po
nden
ts’
view
sA
CE
Rvi
ews
5/1
3
AC
ER
Agen
cyfo
rth
eC
oo
per
atk
rnof
Encr
gv
Reg
ula
tors
and
SID
C.
The
invo
lvem
ent
ofT
SO
sin
corr
ecti
vem
easu
res
falls
unde
r
the
sco
pe
ofsu
chda
y-to
-day
man
agem
ent.
g)F
SE
:In
depe
nden
tsu
perv
isin
gbo
dies
are
requ
ired
;IS
Ost
andar
ds
mus
t
befo
llow
ed.
h)Ø
rste
dpro
pose
sa
full
and
bett
er-d
escr
ibed
list
ofco
rrec
tive
mea
sure
s.
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thes
eco
rrec
tive
mea
sure
sw
illef
fect
ivel
ybe
use
dsh
ould
be
men
tion
edan
dth
efu
llef
fect
ofth
ese
mea
sure
ssh
ould
betr
ansp
aren
t.
The
Am
ende
dP
ropo
sal
stat
esth
atth
eu
seof
corr
ecti
vem
easu
res
dep
end
son
the
algo
rith
mpe
rfor
man
cede
teri
orat
ing
belo
wa
cert
ain
criti
cal
thre
shol
d,bu
tth
ese
thre
shol
dsar
eno
tcl
ear
and
defi
ned.
2re
spo
nden
tspr
ovid
edno
resp
on
seto
this
ques
tion
.
4re
spon
den
tsan
swer
edY
ES
toth
isq
ues
tio
nan
dpr
ovid
edth
efo
llow
ing
addi
tion
alco
mm
ents
:
a)B
DE
W:
Acl
ose
mon
itor
ing
oft
he
perf
orm
ance
byth
eN
EM
Os
ises
senti
al
for
NE
MO
sto
beab
leto
take
acti
ons
inth
eev
entu
alit
yth
atth
ele
vel
of
perf
orm
ance
deg
rades
.A
re-o
peni
ngof
the
deb
ate
onN
EM
Ota
sks
is
not
nec
essa
ryan
dm
ight
cause
unnec
essa
ryco
sts
and
tim
elo
sses
.
b)B
Net
zA:
Mor
eco
ncre
tede
fini
tion
sof
rela
ted
perf
orm
ance
indi
cato
rsan
d
spac
efo
rfu
ture
amen
dm
ents
are
requ
ired
.
c)E
DF:
Sta
keh
old
ers
shou
ldbe
syst
emat
ical
lyin
form
edan
dsh
ould
be
cons
ulte
dfo
rth
ese
lect
ion
ofm
etri
csan
din
dica
tors
.A
CE
Ran
dN
RA
s
shou
ldac
tas
arbi
tral
body
duri
ngth
isco
nsul
tati
onpro
cess
inca
seof
The
Age
ncy
prov
ided
mor
ecl
arit
yin
the
Alg
orith
m
met
hodo
logy
conc
erni
ngth
em
etri
csan
dth
em
etho
dfo
r
mon
itor
ing
the
algo
rith
mpe
rlor
man
ce.
Thes
ein
dica
tors
will
inde
edha
veto
beco
nsul
ted
and
appr
oved
by
regu
lato
ryau
thor
itie
s.T
oim
prov
eth
ene
utra
lity
ofth
e
repo
rtin
gof
per[
orm
ance
mon
itor
ing
the
invo
lvem
ent
of
TS
Os
inth
ere
port
ing
was
intr
oduc
ed.
The
outc
ome
of
thes
ere
port
ssh
ould
bedis
cuss
edin
stak
eho
lder
fora
held
inac
cord
ance
with
Art
icle
11
ofth
eC
AC
M
Reg
ulat
ion.
As
TS
Os’
and
NE
MO
s’in
tere
sts
are
not
alig
ned,
the
Age
ncy
exp
ects
that
this
shou
ldpr
ovid
eso
me
Res
ponden
ts’
vie
ws
AC
ER
vie
ws
Ques
tion
3:D
oyo
uag
ree
that
NE
MO
s,in
coord
inat
ion
wit
hT
SO
s,ar
ebes
tp
lace
dfo
res
tab
lish
ing
the
set
ofm
etri
csan
d
ind
icat
ors
tom
onit
orth
eper
form
ance
ofth
eal
go
rith
m?
How
toin
sure
the
indep
end
ence
ofth
em
onit
orin
gp
roce
ss?
6/13
AC
ER
Agency
for
the
tDoopcrt
on
ol
Lncr
gv
Regula
tors
disp
ute
betw
een
NE
MO
san
dst
akeh
olde
rs.
Met
rics
and
indi
cato
rs
shou
ldbe
subm
itte
dto
regu
lato
ryau
thor
itie
sfo
rap
prov
al.
d)E
NT
SO
-E:
Ext
erna
lau
dit
ofth
em
onit
orin
gpro
cess
and
ofth
e
perf
orm
ance
ofth
eal
gori
thm
itsel
fsh
ould
been
sure
d.
The
enti
tyin
ques
tion
shou
ldbe
inde
pend
ent
from
any
TS
Os’
orN
EM
Os’
acti
viti
es.
1re
sponden
tan
swer
edN
Oto
this
ques
tion
and
prov
ided
the
follo
win
g
addi
tion
alco
mm
ents
:
a)F
SE
:T
heN
EM
Os
orig
inal
lyopp
ose
dth
ew
elfa
recr
iter
ion
and
intr
oduc
ed
redu
ndan
tre
quir
emen
tsin
the
pric
eco
upli
ngal
gori
thm
,w
hich
push
ed
the
solu
tion
away
from
the
Par
eto
opti
mum
.T
hede
velo
pmen
tan
d
mai
nte
nan
cesh
ould
besu
perv
ised
byin
depe
nden
tbo
dies
(AC
ER
and/
or
abo
ard
with
repre
senta
tives
from
the
EU
Mem
ber
Sta
tes)
and
idea
lly
shou
ldbe
oper
ated
byan
enti
tyap
poin
ted
byA
CE
R(i
.e.
not
oper
ated
by
the
NE
MO
s).
2re
spon
den
tspr
ovid
eda
diff
eren
tan
swer
:
a)EA
I:N
EM
Os
mus
tpr
ovid
est
akeh
old
ers
with
mor
ein
sigh
tin
toth
e
brea
dth,
regu
lari
tyor
resu
lts
ofpe
rtor
man
cere
view
sas
wel
las
plan
ned
acti
ons
aris
ing
onfo
otof
them
.
b)E
nel:
Aco
nsul
tati
onw
ithm
arke
tpa
rtic
ipan
tsan
dan
appr
oval
by
regu
lato
rsha
veto
bein
clud
edin
the
pro
cess
.M
onito
ring
acti
viti
es
shou
ldbe
perf
orm
edor
cert
ifie
dby
ath
ird
part
yor
atle
ast
supe
rvis
edby
regu
lato
ryau
thor
itie
san
def
fect
ive
tran
spar
ency
tow
ards
mar
ket
part
icip
ants
isre
quir
ed.
basi
cle
vel
ofne
utra
lity
inth
isp
roce
ss.
How
ever
,at
this
stag
e,th
eA
genc
ydoes
not
yet
see
the
nee
dto
invo
lve
ath
ird
part
yon
are
gula
rba
sis.
Inst
ead
ath
ird
part
yco
uld
behi
red
onan
ad-h
ocb
asis
atth
ere
qu
est
ofre
gula
tory
auth
orit
ies
inca
seof
doub
ts.
For
this
purp
ose,
the
Age
ncy
add
edth
eob
liga
tion
topr
ovid
eth
ere
leva
ntd
ata
toth
e
regu
lato
ryau
thor
itie
sor
toth
eA
genc
y.
Res
po
nden
ts’
vie
ws
AC
ER
vie
ws
3re
sponden
tspr
ovid
edno
resp
on
seto
this
ques
tion
.
7/13
AC
ER
:\gency
for
thc
Co
op
ert
ion
—of
It1erg
vR
egula
tors
2re
spo
nd
ents
answ
erw
ith
YE
Sto
this
qu
esti
on
and
rais
edth
efo
llow
ing
com
men
ts:
a)E
NT
SO
-Est
ates
that
thes
esh
ould
bejo
intly
defi
ned
byN
EM
Os
and
TS
Os
inth
eop
erat
iona
lpr
oced
ures
.F
ailu
reto
mee
tm
etri
csin
dica
tes
lack
ing
perf
orm
ance
.M
etri
csne
edto
bede
fine
d,bu
tsh
ould
not
beab
solu
te.
Ifth
em
etri
csar
eno
tm
et,
the
mar
ket
coup
ling
resu
lts
shou
ldno
tbe
inva
lida
ted
but
rath
erth
en
eces
sary
acti
ons
from
the
NE
MO
san
d/or
from
the
ISO
ssh
ould
beta
ken.
b)F
SE
stat
esth
atth
issh
ould
besu
perv
ised
byin
depe
nden
tbo
dies
.
5re
spo
nd
ents
prov
ided
adi
ffer
entan
swer
rais
ing
the
follo
win
gco
mm
ents
:
a)EA
I,E
DF,
Ene
lan
dØ
rste
ddem
and
mor
etr
ansp
aren
cyon
met
rics
,in
dica
tors
,th
resh
olds
and
tim
elin
es.
ED
Fw
ould
addi
tion
ally
like
toha
vepo
ssib
ilit
ies
for
stak
ehold
ers
topr
opos
ead
diti
onal
indi
cato
rsan
dw
ould
like
tose
eso
me
spec
ific
thre
shol
dsal
read
yw
here
thes
ear
eal
read
ypo
ssib
le.
b)E
nel
men
tion
sth
atco
nsul
tati
onw
ithm
arke
tpa
rtic
ipan
tsan
dan
appr
oval
byre
gula
tors
have
tobe
incl
uded
inth
epr
oces
s.
c)B
Net
zAm
enti
ons
that
the
met
hodo
logy
inge
nera
lsh
ould
aim
atpr
ovid
ing
anin
cent
ive
for
NE
MO
sto
impr
ove
the
algo
rith
man
dits
perF
orm
ance
cont
inuo
usly
.
Whe
repo
ssib
le,
the
Age
ncy
incr
ease
dth
ele
vel
ofde
tail
sof
som
ein
dica
tors
for
mon
itor
ing
the
algo
rith
mpe
rfor
man
ce.
As
ther
ew
asno
tsu
ffic
ient
tim
eto
incl
ude
am
ore
deta
iled
list
and
desc
ript
ions
ofth
eva
riou
sin
dica
tors
,an
algo
rith
mm
onit
orin
gm
etho
dolo
gysh
ould
bede
velo
ped
thro
ugh
anam
end
men
tof
Alg
orith
mm
etho
dolo
gy.
Thi
sal
gori
thm
mon
itor
ing
met
hodo
logy
shal
lbe
deve
lope
dby
all
NE
MO
sin
coor
dina
tion
with
all
TS
Os
byA
ugus
t20
19.
The
ann
exsh
ould
cont
ain
am
ore
deta
iled
desc
ript
ion
ofth
epro
cess
es,
indi
cato
rsan
dth
resh
olds
,w
hile
prov
idin
gte
chni
cal
flex
ibili
tyfo
rth
efu
rthe
rde
velo
pmen
tof
the
algo
rith
man
dits
mon
itor
ing.
See
also
Age
ncy’
sre
sponse
toth
epr
evio
usqu
esti
on.
Res
po
nden
ts’
vie
ws
AC
ER
vie
ws
Ques
tion
4:S
hould
the
Am
ende
dP
roposa
lin
clud
ea
min
imum
set
ofm
etri
csan
dth
resh
old
s,w
hich
can
beco
mple
men
ted
ov
erti
me
tosu
pport
furL
her
impro
vem
ent
inth
eper
form
ance
ofth
eal
go
rith
m?
3re
spon
den
tspr
ovid
edno
resp
on
seto
this
ques
tion
.
8/13
AC
ER
Ag
ency
forth
Copert
ion
—o
•L
ner
gy
Reg
ulat
ors
Que
stio
n5:
Do
you
consi
der
the
min
imum
requir
emen
tsfo
rth
een
duri
ng
algo
rith
mso
luti
on
assu
ffic
ien
tan
dco
mp
lian
tw
ith
CA
CM
Reg
ula
tion?
3re
spon
den
tsfa
voure
dth
ean
swer
NO
and
rais
edth
efo
llow
ing
corn
rnen
ts:
a)F
SE
reas
on
sth
atth
ere
quir
erne
nts
rnus
tst
ate
that
the
pric
eco
upli
ngal
gori
thrn
get
sas
clos
edto
the
Par
eto
optir
nurn
aspo
ssib
le.
b)N
GIC
:T
hesc
hed
ule
dfl
owca
lcul
atio
nrn
ayno
tbe
suff
icie
ntfo
rth
eca
sew
here
abo
rder
corn
pris
esD
CI/
Cs,
and
part
icul
arly
ifth
ere
isrn
ore
than
one.
NG
ICw
ould
ther
efor
est
rong
lyre
corn
rnen
dto
incl
ude
the
orig
inal
DC
requ
irer
nent
,per
hap
sw
ithth
ein
clus
ion
ofth
ephra
se“w
here
appl
icab
le”
tore
flec
tth
edi
ffer
ing
appro
aches
inth
edi
ffer
ent
Bid
ding
Zon
es.
c)E
NT
SO
-Est
ates
that
the
rnin
irnu
rnre
quir
emen
tto
geth
erw
ithth
epr
opos
alis
not
fully
CA
CM
com
plia
ntas
sched
ule
dfl
ows
shou
ldbe
calc
ulat
edbe
twee
nbi
ddin
gzo
nes
,sc
hedu
ling
area
s,N
EM
Otr
adin
ghu
bsan
dw
here
appl
icab
le,
into
and
out
ofin
divi
dual
rele
vant
DC
netw
ork
elem
ents
.A
llT
SO
snee
dto
high
ligh
tth
atif
impl
emen
tati
onof
cert
ain
func
tion
alit
ies
inth
eA
lgor
ithm
are
deli
vere
dto
ola
te,
this
may
dela
yth
eim
plem
enta
tion
ofce
rtai
nT
SO
met
hodo
logi
es.
3re
spon
den
tspr
ovid
eda
diff
eren
tan
swer
rais
ing
the
follo
win
gco
mm
ents
:
a)EA
Im
enti
ons
that
the
curr
ent
solu
tion
isno
tm
eeti
ngth
em
arke
tpa
rtic
ipan
ts’
nee
ds
conc
erni
ngth
eab
ility
toac
com
modat
eal
lor
der
type
sw
itho
utre
stri
ctio
nsto
the
mar
ket
(sca
labi
lity
).
The
Age
ncy
cons
ider
sth
ata
bal
ance
isnee
ded
betw
een
anal
gori
thm
acco
mm
odat
ing
all
com
plex
prod
ucts
and
anal
gori
thm
achi
evin
gfu
llop
tim
alit
yan
dad
equat
epe
rlor
man
ce.
The
Age
ncy
beli
eves
that
this
bal
ance
nee
ds
tobe
defi
ned
byal
lN
EM
Os
with
inth
ele
gall
ybi
ndin
gco
nstr
aint
son
the
algo
rith
mpe
rfor
man
ce,
optim
ality
,pr
oduc
tsan
dre
quir
emen
ts.
Hen
ce,t
heA
genc
ycl
arif
ied
thes
eco
nstr
aint
sw
ithth
eA
lgor
ithm
met
hodo
logy
and
all
NE
MO
sar
ere
spon
sibl
eto
find
the
righ
tb
alan
cew
ithin
thes
eco
nstr
aint
s.F
orex
ampl
e,in
case
ofpr
oble
ms
with
perf
orm
ance
,op
tim
alit
yor
scal
abil
ity,
all
NE
MO
sha
veto
sim
plif
yth
epr
oduc
tsor
requ
irem
ents
toth
eex
tent
poss
ible
and
nee
ded
.
As
the
prov
isio
nof
sch
edu
led
exch
anges
ofD
Cel
emen
ts(i
nclu
ding
loss
es)
isco
vere
din
the
ann
exed
DA
requ
irem
ents
,th
eA
genc
ydoes
not
deem
itnec
essa
ryto
men
tion
expl
icitl
yth
ese
indi
ffer
ent
part
sof
the
mai
ndo
cum
ent.
Fur
ther
desc
ript
ions
ofsc
hed
ule
dex
chan
ges
will
beco
vere
din
the
sch
edu
led
exch
ang
em
etho
dolo
gyac
cord
ing
toA
rtic
le43
and
56of
the
CA
CM
Reg
ulat
ion
and
isth
eref
ore
not
cove
red
inth
ism
etho
dolo
gy.
The
orde
rty
pes
acco
mm
od
ated
byth
eal
gori
thm
are
cove
red
inth
eD
Aan
dID
prod
ucts
defi
ned
inac
cord
ance
Res
po
nden
ts’
vie
ws
AC
ER
vie
ws
9/13
AC
ER
m\g
ency
for
the
Cooptr
aton
ofL
ncr
gv
I?gula
tor5
b)E
DF:
The
min
imum
requ
irem
ents
for
the
endu
ring
algo
rith
mso
luti
onsh
ould
also
incl
ude
the
abili
tyto
supp
ort
“use
rde
fine
d”bl
ock
prod
ucts
cove
ring
mul
tiple
mar
ket
tim
eun
its
(MT
Us)
and
supp
ort
cross
-bord
erim
plic
itca
paci
tyal
loca
tion
with
agr
anul
arit
yco
rres
pond
ing
toth
elo
nges
tm
arke
tti
me
unit
info
rce
inad
jace
nt
bidd
ing
zones
.
c)E
nel
beli
eves
that
the
endu
ring
solu
tion
shou
ldst
rive
for
the
elim
inat
ion
ofco
mpl
expr
oduc
tsan
dal
low
sim
ple
prod
ucts
toge
ther
with
port
folio
bids
inbo
thD
Aan
dID
mar
kets
.Po
rtfo
liobi
ddin
gsh
ould
beg
uar
ante
edin
all
Mem
ber
Sta
tes
bypr
oper
met
hodo
logi
esan
dru
les.
4re
sponden
tspr
ovid
edno
resp
on
seto
this
ques
tion
.
2re
spon
den
tsan
swer
edY
ES
and
rais
edth
efo
llow
ing
com
men
ts:
a)B
DE
Wst
ates
that
NE
MO
sha
veth
eco
mp
eten
ces,
abil
itie
san
dex
peri
ence
todo
so.
Are
-ope
ning
ofth
edeb
ate
onN
EM
Ota
sks
isno
tnec
essa
ryan
dm
ight
cause
un
nec
essa
ryco
sts
and
tim
elo
sses
.
b)E
DF:
Oth
eren
titi
esco
uld
also
prop
ose
impr
ovem
ents
ifth
eal
gori
thm
sar
eop
enso
urce
.A
cons
ulta
tion
pro
cess
with
mar
ket
part
icip
ants
isnec
essa
ryfo
rbo
thth
eim
plem
enta
tion
ph
ase
and
the
req
ues
tfor
chan
ge
pro
cess
inor
der
toen
sure
that
the
solu
tion
spr
opos
edar
ein
line
with
mar
ket
part
icip
ants
’n
eed
san
ddo
not
undu
lyha
mpe
rth
eir
acti
viti
es.
Reg
ulat
ory
scru
tiny
isal
son
eces
sary
toen
sure
the
indep
enden
ceof
the
asse
ssm
ent
ofN
EM
O’s
prop
osal
s.
with
Art
icle
s40
(1)a
nd53
(1)o
fth
eC
AC
MR
egul
atio
nan
dar
eth
eref
ore
out
ofsc
ope
ofth
eA
lgor
ithm
met
hodo
logy
.Po
rtfo
lioor
unit
bas
edbi
ddin
gis
also
outs
ide
ofth
ele
gal
man
dat
eof
this
met
hodo
logy
.
As
the
imm
edia
tefu
llpr
ovis
ion
ofal
lre
quir
emen
tsan
dal
lpr
oduc
tsco
vere
din
the
DA
and
IDpr
oduc
tpr
opos
als
iste
chni
call
yno
tfe
asib
leye
t,a
reas
onab
leb
alan
cebe
twee
nsu
ppor
ted
prod
ucts
and
requ
irem
ents
and
asu
ffic
ient
perf
orm
ance
ofth
eal
gori
thm
topr
ovid
ea
solu
tion
inti
me
nee
ds
tobe
esta
bli
shed
inth
em
eant
ime.
The
Age
ncy
con
sid
ers
the
NE
MO
ssh
ould
beca
pab
leof
stri
king
ab
alan
cebe
twee
nm
eeti
ngth
em
arke
tpa
rtic
ipan
ts’
nee
ds
inte
rms
offl
exib
ility
ofth
epr
oduc
tsan
den
suri
ngth
atth
eal
gori
thm
isro
bust
and
com
plia
ntw
ithth
eC
AC
MR
egul
atio
n.H
owev
er,
the
Age
ncy
consi
der
sth
ata
prop
erle
gal
fram
ewor
kis
nee
ded
topr
ovid
eth
eri
ght
ince
ntiv
esan
dco
nstr
aint
sfo
rN
EM
Os.
For
this
reas
on,
the
Age
ncy
clar
ifie
dan
dst
ren
gth
ened
the
obli
gati
ons
rega
rdin
gth
eim
plem
enta
tion
ofth
eal
gori
thm
sw
ithre
gard
toth
ere
quir
emen
ts,
prod
ucts
,sc
alab
ilit
yre
peat
abil
ity
and
perf
orm
ance
.A
llth
eis
sues
not
lega
lly
Res
po
nden
ts’
vie
ws
AC
ER
vie
ws
Ques
tion
6:D
oyo
uth
ink
that
NE
MO
sar
ebes
tpla
ced
and
/or
able
tost
rike
abal
ance
bet
wee
nm
eeti
ng
the
mar
ket
par
tici
pan
ts’
nee
ds
inte
rms
offl
exIb
ilit
yof
the
pro
du
cts
and
ensu
ring
that
the
algo
rith
mis
robu
stan
dco
mp
lian
tw
ith
the
CA
CM
Reg
ula
tion?
10/1
3
AC
ER
i\gncy
for
the
Cooperi
tio
n01
Energ
yR
egula
tors
Res
po
nden
ts’
vie
ws
AC
ER
vie
ws
1re
spon
den
tsan
swer
edN
Oan
dra
ised
the
follo
win
gco
mm
ent:
a)F
SE
stat
esN
EM
Os
are
not
the
ones
tode
cide
how
tost
rike
the
bala
nce
betw
een
havi
nga
suff
icie
ntam
ount
ofbl
ock
prod
ucts
for
the
hedg
ing
nee
ds
ofm
arke
tpa
rtic
ipan
tsan
da
limite
dsh
are
ofor
ders
asbl
ock
bids
toen
sure
are
liab
lesp
otpr
ice
calc
ulat
ion.
The
part
ies,
whi
chha
veth
eir
mon
eyat
stak
e,m
ust
deci
deho
wto
stri
keth
eba
lanc
e.
2re
spo
nd
ents
prov
ided
adi
ffer
ent
answ
erra
isin
gth
efo
llow
ing
com
men
ts:
defi
ned
shou
ldth
eref
ore
beco
nsi
der
edas
poss
ible
deg
rees
offr
eedo
mfo
rN
EM
Os
tofi
ndth
eco
rrec
tba
lanc
e.A
mon
gth
em,
the
sim
plif
icat
ion
ofpr
oduc
tsor
requ
irem
ents
are
the
mos
tob
viou
so
nes
.
The
Age
ncy
also
agre
eson
the
nee
dof
TS
Os’
invo
lvem
ent
inth
ech
ange
req
ues
tpro
cess
and
ther
efor
eits
gene
ral
go
ver
nan
cew
asim
prov
ed,
stak
ehol
ders
’in
volv
emen
tw
asad
ded
and
mor
epo
ssib
ilit
ies
for
regu
lato
rysc
ruti
nyw
ere
put
inpl
ace.
a)EA
Iis
conce
rned
with
the
conf
lict
ofin
tere
stbe
twee
nva
riou
sN
EM
Os
aris
ing
from
the
com
mon
MC
Ogover
nan
cew
hile
bein
gin
com
peti
tion
with
each
othe
r.T
his
may
rais
eba
rrie
rsto
entr
y(f
orm
arke
tpa
rtic
ipan
tsbu
tal
sofo
rfu
rthe
rN
EM
Os)
,di
scri
min
atio
nbe
twee
ndi
ffer
ent
mar
kets
and
pote
ntia
lly
coll
usiv
ebe
havi
our
amon
gN
EM
Os.
b)E
NT
SO
-E:
Fut
ure
mar
ket
evol
utio
nre
quir
esa
stou
ter
refl
ecti
onof
pow
ersy
stem
cons
trai
nts
inca
paci
tyal
loca
tion
,w
hich
wou
ldin
crea
seth
eco
mpl
exit
yof
the
ITso
luti
ons
and
tigh
ten
the
link
betw
een
TS
Os
and
the
MC
Ofu
ncti
on.
The
curr
ent
lega
lfr
amew
ork
does
not
ensu
resu
ffic
ient
TS
Os’
cont
rol
over
this
vita
lfu
ncti
on.
TS
Os
call
for
ast
rong
erro
lein
the
pro
cess
for
runn
ing
the
MC
Ofu
ncti
onaf
fect
ing
thei
rco
reb
usi
nes
sde
sign
atio
nof
the
MO
Oco
ordi
nato
r,th
epo
ssib
ilit
yfo
rT
SO
sto
appr
ove
the
DA
and
IDal
gori
thm
amen
dm
ents
and
the
poss
ibil
ity
for
TS
Os
toha
vea
role
inth
ede
cisi
on-m
akin
gpro
cess
onn
eces
sary
mea
sure
sw
hen
ane
wbi
ddin
gzo
ne(E
Z)
bord
erjo
ins.
All
TS
Os
cont
end
that
the
The
gene
ral
disc
ussi
onon
MO
Og
ov
ern
ance
is,
how
ever
,ou
tof
scope
and
lega
lm
and
ate
ofth
eA
lgor
ithm
met
hodo
logy
.
11/1
3
AC
ER
—A
genc
yfo
rth
eC
oope
rati
onof
tner
gv
Reg
ulat
ors
Res
po
nden
ts’
view
sA
CE
Rvi
ews
MC
OF
unct
ion
shou
ldbe
prop
erly
regu
late
dan
dse
par
ated
from
the
com
peti
tive
acti
viti
esof
NE
MO
s.
[jesp
ondents
prov
ided
nore
spo
nse
toth
isqu
esti
on.
12/1
3
J•C
ER
i\gflcy
or
the
topvrt
ton
t)i
Lncrg
yR
egula
tors
3L
ist
ofre
sponden
ts
Org
anis
atio
nT
ype
BD
EW
Ass
ocia
tion
BN
etzA
NR
A
Dan
ish
Fed
erat
ion
ofIn
dust
rial
Ene
rgy
Consu
mer
s(F
SE
)A
ssoc
iati
on
ED
FE
nerg
yco
mpa
ny
Ele
ctri
city
Ass
ocia
tion
ofIr
elan
d(E
AI)
Ass
ocia
tion
Ene
lE
nerg
yco
mpa
ny
Eni
Ene
rgy
com
pany
EN
TS
O-E
Eur
opea
nN
etw
ork
ofT
rans
mis
sion
Sys
tem
Op
erat
ors
Nat
iona
lG
rid
Inte
rcon
nect
ors
Ltd
(NG
IC)
TS
O
Ors
ted
Ene
rgy
com
pany
13/1
3
