Directed Contracts are a part of the RAs’ market power mitigation strategy to ensure that the benefits associated with the SEM are not undermined by the abuse of market power.
In May 2022 (SEM-22-017), market participants were notified of the RAs’ decision to hold the Primary Subscription Window over six days. On August 24th 2022, market participants were further notified that the RAs decided to implement such amendments in DC Round 20 (SEM-22-059). The RAs previously noted their intentions to consult with market participants in Quarter 1 2023, to determine if the amendments should be implemented in any subsequent DC Rounds. A consultation paper (SEM-23-015) was published and sought stakeholder views.
Following consideration of responses received, we have decided to implement the amendment made to the duration of the Primary Subscription Window (i.e., six days, across two consecutive weeks) on an enduring basis, subject to review. We have decided to maintain the current arrangement such that it is at the supplier’s discretion as to which day(s) they choose to participate in a given DC Round and there is no obligation for any eligible supplier to avail of the option of a six-day Primary Subscription Window.
For further information please contact the Market Modelling Group (email@example.com) at the CRU and Kevin Baron (firstname.lastname@example.org) at the Utility Regulator.
SEM-23-026 Amendment to the Duration of the Directed Contracts Primary Subscription Window Decision Paper
Amendment to the duration of the directed contracts primary subscription window decision paper
04 April 2023