Regulatory Authority Quarterly Report
Market Operator Performance Criteria
April 2011
Table of Contents
1 Introduction 3
2 Manage Change 4
2.1 Software Deployments 4
2.2 Future Scheduled Deployments 4
2.3 Modification Management 5
2.4 Modifications Process Development 8
Mod_18_10 Intra-Day Trading in the SEM 8
Mod_36_10 Removal of Connection Between Supplier Units and DSUs 8
3 Service Delivery 10
3.1 Core Market Operations Function Performance excluding ad-hoc Re-pricing and Re-settlement 10
3.2 Planned Resettlement M+4 and M+13 12
3.3 Ad-hoc Pricing and Ad-hoc Resettlement Runs 12
3.4 Administration of Credit Cover 13
3.5 Breaches of the Trading and Settlement Code 15
4 Regulatory Affairs 17
5 Provide Information 19
5.1 Customer Queries in a Timely Manner 19
5.1.1 Data Queries 19
5.2 Facilitate and Educate Market Participants to accede to the Code 22
5.3 Facilitate Interaction with Customers 22
5.3.1 Stakeholder Events 22
6 Required Credit Cover Coverage Analysis 23
6.1.1 Foreword on Required Credit Cover Coverage 23
6.1.2 Summary of Required Credit Cover Coverage Analysis 23
6.1.3 Occurrences of Under or Over Estimation 23
6.1.4 Extent of Under and Over Estimation 25
6.1.5 Market Monetary Exposure 25
6.1.6 All Quarters Summary 26
7 Appendix A: Required Credit Cover Coverage 27
7.1.1 Required Credit Cover Coverage Modelling Assumptions 27
1 Introduction
The Single Electricity Market has been in operation since the 1st November 2007. Under the licence conditions of both EirGrid and SONI to operate the Single Electricity Market (SEM), SEMO has to report to the Regulatory Authorities (RA) on critical performance metrics. These critical metrics were identified in a letter dated 18th October 2007 from the RA to SEMO. The letter outlined four main categories of metric:
· Manage Change
· Service Delivery
· Manage Stakeholders
· Provide Information
Please note that April 2011 will be the last report where Quarters are defined according to the calendar year as follow:
Q1 = 1st January to 31st March 2011
Q2 = 1st April to 30th June 2011
Q3 = 1st July to 30th September 2011
Q4 = 1st October to 31st December 2011
On all reports after April 2011, Quarters will be defined according to the financial year as follow:
Q1 = 1st October to 31st December 2010
Q2 = 1st January to 31st March 2011
Q3 = 1st April to 30th June 2011
Q4 = 1st July to 30th September 2011
2 Manage Change
2.1 Software Deployments
There were no scheduled or emergency deployments in the period January to March 2011.
2.2 Future Scheduled Deployments
2.2.1 SEM R1.9.0 – May 2011.
It was decided to move the scheduled deployment date to 6th May 2011, to avoid deploying on a bank holiday weekend. This was communicated to the industry on 7th January 2011.
Due to the postponement of the deployment date by one week, the Market Test plan has also been moved out by a week to allow for additional system testing by SEMO and by Market Participants.
The scope for SEM R1.9.0 is as follows:
SEM R1.9.0 Change RequestsCR Reference / Mod. Ref / Sub-System / Description
CR178 / N/A / MI / Standing Bid Conversion Event
CR180 / N/A / Settlements/CRM / Exchange Rates in the Central Market Systems
CR187 / N/A / MOI / MOI Batch Functionality
CR192 / N/A / Settlements / MSQ in Capacity PIR Report
CR199 / Mod_34_09 / MI/Settlements / Global Aggregation
CR200 / N/A / MI / Max Limit of 6 SRAs per PT in MI
CR201 / N/A / CRM / Supplier and GU Overview in TRM
CR209 / N/A / Settlements / PUGDOC TTARIFF improvements ("full automation")
CR210 / N/A / Settlements / CDEX by Market
CR214 / N/A / Settlements / Removal of 0INTEREST import source
CR215 / N/A / Settlements / MSQ in Public Settlements Reports
CR217 / Mod_46_09 / MA / Treatment of UIs for pumped storage units
CR219 / N/A / RCUC / RCUC - No Wind Reserve Contribution
CR228 / N/A / CRM / Calculation of forecast ENG-CAP price in TRM
CR233 / N/A / Finance / Invoice Details applied to Axapta Sales Journals
CR234 / N/A / Settlements / Currency Costs calculation in Axapta / Settlements
CR235 / N/A / Finance / Market Type for each Open Transaction on Axapta
CR241 / N/A / Finance / Invoice Numbers on Axapta
CR242 / Mod_12_09 / Settlements / Loss Adjustment of SUC and NLC
CR243 / Mod_39_10 / Settlements / Change from 7_12 to enduring 4_91 NDLFeh calc
Table 1: Approved Scope for SEM R1.9.0 – Change Requests
In addition, there are currently 55 defect fixes in the SEM R1.9.0 release scope. Three of these fixes involve changes to the UUC Pricing & Scheduling software, so an independent re-certification of the software has taken place as part of the release. This certification testing completed on April 1st.
Market Testing with Meter Data Providers took place between March 7th and March 14th. No issues were found during this test phase.
Market Testing with Market Participants commenced on March 14th, and will complete on April 22nd. Three issues have been identified during this test phase, which will be fixed in time for further Market Participants testing prior to the completion of this test phase.
2.2.2 SEM R1.10.0 – October 2011.
The release cut-off date for changes to be considered for the SEM R1.10.0 release was February 18th, 2011. There were no outstanding (i.e. unallocated) Approved Modifications Proposals at this date. In addition there were no external Change Requests received by the SEM Design Service (SDS) in advance of this date.
Currently the confirmed change request scope in the SEM R1.10.0 release is as follows.
SEM R1.10.0 Change RequestsCR Reference / Mod. Ref / Sub-System / Description
CR172 / MI / MIUN calculations.
Table 2: Change request scope
CR172 was originally planned for implementation in SEM R1.9.0, however due to delivery and testing timelines constraints, this could not be delivered in time for implementation as part of SEM R1.9.0. This is therefore planned for implementation as part of SEM R1.10.0.
On the 24th March SEMO received approval to proceed with the October 2011 release as outlined above.
2.3 Modification Management
SEMO Modifications CommitteeReport Period: 1st January 2010 to 31st March 2010 /
Modification Committee Summary / Total
Number of Meetings held / 2
of which
· Scheduled Meeting (1st February)
· Extraordinary Meeting (8th March) / 1
1
· Conference calls
(Mod_04_11 DSU MEC & Mod_33_10 Unit Under Test) / 2
· Working Group
(Mod_24_10 & Mod_38_10 Treatment of Errors and Losses)
(Mod_05_11 Extension to the Role of the Modifications Committee via Working Groups) / 2
Modification Proposal Activity in this period
Standard Modification Proposals raised / 7
Urgent Modification Proposals raised / 0
Modification Proposals 'Withdrawn' / 1
New[1] Modification Proposals ‘Deferred’ as of end of this period / 4
Existing[2] Modification Proposals 'Deferred' as of end of this period / 3
Existing[3] Modification Proposals ‘Further Work Required’ as of end of this period / 0
Modification Proposals 'Recommended for Approval' / 7
Modification Proposals 'Recommended for Rejection' / 1
RA Determinations in this period
RA Decision Papers ‘Extension Granted’ / 2
RA Decision Papers ‘Further Work Required’ / 0
RA Decision Papers ‘Approved’ (02_11, 03_11, 41_10, 33_10, 28_10) / 5
RA Decision Papers ‘Rejected’ / 0
Summary of All Modifications to Date (31st March 2011)
Total raised to date / 259
Total 'Withdrawn' to date / 44
Currently 'Deferred' in process / 7
Currently ‘Recommended for Rejection’ / 1
Currently ‘Recommended for Approval’ / 5
Currently ‘Approved’ (awaiting Implementation) / 3
Total 'Implemented' to date / 194
Total 'Rejected' to date / 5
Table 3: SEMO Modifications Committee Report
Details of all Modifications Proposals can be found at http://www.sem-o.com/MarketDevelopment/Modifications/Pages/Modifications.aspx?Stage=Active
Figure 1: Modifications Summary Quarter 1 2011
Figure 2: Modifications Status to Date on 31st March 2011
2.4 Modifications Process Development
Modifications Committee Meetings
Meeting 33 and Meeting 34 of the Modifications Committee were held on the 1st February in Dublin and on 8th March in Belfast respectively. Meeting 34 was an extraordinary meeting.
Significant Modifications issues inQuarter 1 2011
Mod_18_10 Intra-Day Trading in the SEM
SEMO produced further iterations of the User Requirements Specifications and continued to negotiate with the vendor regarding the functional cost of the project. This included on-site discussions with ABB on January 19th and 20th.
In February, Final User Requirements Specifications were agreed with vendor and the drafting of modification functional groups began.
In March, development continued on the proposed Intra-Day Modification (Functional Groups 1 and 3) with input into the next baseline of User Requirement Specifications. The Terms of Reference for the next phase of Intra-Day Working Groups were finalised, the first of which will take place on May 10th.
Mod_36_10 Removal of Connection Between Supplier Units and DSUs
Following December's Working Group, and SEMO's comments, the proposer submitted an alternative version of the Modification Proposal based on discussions in the Working Group. All relevant actions were followed up and the modification was recommended for approval in February's Modifications Meeting.
Mod_37_10 Constraint Payment for Energy Limited Units
SEMO looked at scenarios of different COD to address this issue, but found that this would not provide a solution. A number of discussions were held with the vendor to see if alternative solutions could be found, based on experience in other markets. A bilateral meeting was held with the proposer in January in advance of the Modifications Meeting. The two options proposed were (a) a change to the way in which the LR algorithm schedules energy limited units and (b) the units to re-register as Price Takers subject to Priority Dispatch considerations. SEMO was not in favour of the recovery through constraints of the SMP weighted average put forward by the proposer.
This Modification Proposal was discussed at the extraordinary Modifications Meeting on 8th March where SEMO presented the results of the impacts assessments. ESBPG were still in favour of modifying the constraints payments algebra. SEMO and the SOs, on the other hand, both indicated that this was not the best approach in their view. SEMO and SOs suggested another option that would address the issue at its source in the LR algorithm. Mod_37_10 was Recommended for Rejection in favour of changing the LR algorithm.
Mod_42_10 Changes to the Single Ramp Up Rate and the Single Ramp Down Rate Calculation
This modification was further developed in conjunction with the TSO and a new version submitted for the February Modifications Meeting where it was recommended for approval.
Mod_43_10 Variable Price Taker Generator Units and Firm Access
SEMO received confirmation from the RAs mid-January that they agreed with SEMO's comments. SEMO had obtained a high-level impact assessment in advance of the Modifications Committee, but had additional comments when the revised text was received from the RAs on January 18th. SEMO suggested alternative text to that proposed in the re-submitted version.
Following the February Modifications Meeting, SEMO were asked by the RAs to finalise text for Mod_43_10 that would achieve the objectives of treating all Generator Units equally with regard to Firm Access quantities. SEMO completed this and procured a full impact assessment. An extraordinary Modifications Meeting was requested by the RAs through the chair and this Modification Proposal was Recommended for Approval at this meeting on 8th March.
Mod_10_11 Interconnector Under Test
This modification was raised by the SOs for the April meeting, the options having previously been discussed with SEMO. The modification is aimed at facilitating the testing of EWIC, while also putting a process in place for future Interconnection by which interconnectors can go under test. It will require systems changes, which will have to be submitted for consideration for the July 2012 release.
3 Service Delivery
This metric is to indicate how timely SEMO was in producing reports to Market Participants.
3.1 Core Market Operations Function Performance excluding ad-hoc Re-pricing and Re-settlement
SEMO’s daily obligations include closing the market gate, issuing Ex-Ante Indicative schedules, running Indicative and Initial pricing runs and issuing Initial and Indicative Settlement runs. The following series of graphs shows the percentage of all reports issued in the Quarter that were on time, late by less than an hour or late by over an hour. In summary, the majority of reports are published on time or within an hour of the required time. Priority is given to the Initial Reports (Ex-Post Initial Pricing Schedule and Initial Settlement Statements) and this can impact on Indicative Reports (Ex-Post Indicative Pricing Schedule and Indicative Settlement Statements) being delayed longer as a result of operational or systems issues.
Figure 3 - Overall Daily Report Publication
Gate closure is a significant market event as all bids and offers are required to be captured at that point.
Figure 4 - Gate Closure performance
The Initial pricing and Settlement reports are published on a calendar and working day respectively. It is these reports that are used in the final settlement of the market.
Figure 5 - Initial report performance
During this quarter all Initial Market Schedules were published on time.
A number of Settlement reports were delayed, both Indicative and Initial. Initial Settlement reports for 13th February 2011 were delayed as a result of system performance issues.
Figure 6 - Indicative report performance
Indicative reports for 2nd and 16th February 2011 were delayed due to system performance issues. Additional Indicative reports for 3rd to 6th February 2011 were also delayed as a result of an error in the configuration of a new generator unit in the market systems.
In March, Indicative reports for 24th March 2011 were delayed due to a registration issue impacting market settlement.
3.2 Planned Resettlement M+4 and M+13
Scheduled Re-Settlement has continued to run on time and on schedule.
3.3 Ad-hoc Pricing and Ad-hoc Resettlement Runs
There were no Ad-hoc re-pricing runs issued during this Quarter.
Ad-hoc Settlement Runs
There were a number of upheld Settlement Queries that required Ad hoc Resettlement during this Quarter. The following Billing Periods were affected;