Amendment to the Allocation of Directed Contracts Decision Paper

22 November 2021

Amendment to the Allocation of Directed Contracts Decision Paper

Today, 22 November 2021, the SEM Committee is publishing its Amendment to the Allocation of Directed Contracts Decision Paper.

In Q3 2021, the SEM Committee published an Information and Consultation Paper (SEM-21-065) regarding an amendment to the allocation of Directed Contracts (DCs).  It proposed that DCs allocated to market participants who cannot participate in DC rounds due to not having a Financial Energy Master Agreement (FEMA) in place with ESB, be reallocated to suppliers with a FEMA and a Maximum Import Capacity (MIC) value of less than 5% of the total market MIC.

This methodological amendment had been temporarily implemented for DC Round 16 (September 2021); the consultation was on whether it should become an enduring change, pending a conclusion of the broader market power and liquidity workstream.

Following consideration of consultation responses, the SEM Committee has decided that the proposals set out in SEM-21-065 should, from DC Round 17 (December 2021), become an enduring arrangement, pending a conclusion of the broader market power and liquidity workstream.