Today, Monday 4th April 2022, the Regulatory Authorities (RAs) are publishing a notification of their decision to further postpone Round 18 of the Quarterly Directed Contracts until at least mid-May 2022.
This follows the RAs’ decision published on March 16th 2022 to postpone Round 18 by two weeks (SEM-22-008).
DCs 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. The purpose of these contracts is to remove the incentive on ESB Power Generation to attempt to profit from the use of market power.
Due to the unprecedented volatility in commodity markets, the RAs have decided to further postpone Round 18 (R18) of the Directed Contracts (DCs), which was scheduled to take place on the 22nd to 24th March 2022 (Primary Subscription Window) and the 31st March 2022 (Supplemental Subscription Window).
The RAs are working to consider any potential amendments to the process of forecasting DC pricing formulae within a highly volatile commodity price environment.
The postponement of DC Round 18 will be until at least mid-May 2022.