DS3 System Services - Notification of delay to Auction Design

23 May 2016

In response to requests from Industry following the consultation on the DS3 System Services Auction Design, the Regulatory Authorities held an Industry Workshop on the 25th April in Dundalk. At this workshop, industry participants presented on various alternative approaches to the auction process. Having considered the consultation responses and the output from the workshop, the SEM Committee agrees that further engagement with industry is appropriate.

Therefore, in order to facilitate this industry engagement, it will be necessary to revise the date for the first auction to the first half of 2018, for delivery of the service(s) in October of 2018. The SEM Committee is cognisant of the need for the timely implementation of the new System Services arrangements and accordingly will continue the implementation of the interim arrangements.

The SEM Committee is currently considering the appropriate next steps and scope for the Auction Design, in light of the arguments put forward by respondents and the emerging complexity in interactions with the I-SEM workstreams. The SEM Committee will adopt a pragmatic and flexible approach when setting the scope of the first auctions in order to ensure a competitive process is carried out in 2018, with the potential for further development of that process in subsequent years.

In considering the appropriate next steps, the SEM Committee has had particular regard to the need for timely delivery of an auction in order to better facilitate new investment and the consumer benefits that competition can bring. However, the SEM Committee must balance this against the need to ensure that the auction design that is implemented will operate effectively and deliver consumer benefits.

The SEM Committee will liaise with the TSOs to produce and publish a new programme to take account of this decision and will ensure this new programme is aligned with the CRM process and the I-SEM project plan.

The SEM Committee would like to take this opportunity to thank industry participants for their active and constructive engagement in this important project.