SEM Committee market update

30 November 2017

The SEM Committee (SEMC) is pleased to confirm to market participants that the Department for Communications Climate Action and Environment (DCCAE) and the Department for the Economy (DfE) have both received confirmation of state aid clearance for the Capacity Remuneration Mechanism.  A link to the European Commission Decision in this regard can be found by clicking on http://europa.eu/rapid/press-release_IP-17-4944_en.htm.

The SEMC is also pleased to confirm its approval of the Final Auction Information Pack and in so doing confirm that the T-1 Auction will proceed as scheduled on the 15 December 2017.

The SEMC notes that all market participants wishing to participate in the Capacity Market have acceded to the Capacity Market Code and to do so have signed Capacity Market Framework Agreements so as to be able to qualify to participate. In approving the Final T-1 Auction Information Pack the SEMC are satisfied as to the qualification of all market participants.  The requirements of the capacity market code together with market participant legal duties provides sufficient protection for consumers in supporting the SEMC in its decision to proceed with this first go-live event associated with the I-SEM Programme. 

The SEMC is also pleased to have approved the start of market trials on 1 December 2017.

The SEMC, while acknowledging legal challenges brought by a market participant in respect of certain I-SEM related licence modifications, notes that these do not, at this time, impact on the continued delivery of the I-SEM programme.

The Commission for Regulation of Utilities (CRU) informed holders of generation and supply licences in Ireland of the request for the establishment of the Appeal Panel and the consequential suspension of the CRU decision CER/17/277 dated 15 September and licence modifications set out there in, pending the outcome of the appeal.

Those suspensive effects do not apply in Northern Ireland and that being the case, the modified licences took effect for all NI licenced market participants as of the 10 November, albeit the licence modifications in question require a direction from the Utility Regulator to switch them on.   The Utility Regulator with effect from Friday 1 December 2017 will issue this Direction so as to switch on the relevant CMC Condition for each licensee.

Notes:

(1) The CRU licence modifications which are the subject of the proceedings involve the amendment of condition 15 in each of the relevant generation licences (Cost Reflective Bidding in the Single Electricity Market) and the introduction of two new conditions into those licences, i.e., condition 15a (Balancing Market Principles Code of Practice) and condition 20 (Capacity Market Code).
The Integrated Single Electricity Market (I-SEM) will take the wholesale electricity market to a new level of operational effectiveness and efficiency by:

Making best use of all the power on the system;
Using interconnectors in the most efficient way;
Ensuring that market arrangements send out the right signals to investors planning to enter or leave the market; and
Rewarding plant that best addresses our needs.

(2) For further information contact: Barbara Stevenson (Barbara.stevenson@uregni.gov.uk/ 02890316343/ 07794 865 922)