A new regulation concerning the organization and functioning of the Intra-Day Market for electricity („IDM”) has been published in the Romanian Official Gazette on 17 October 2013 (the “Regulation”) and it will come into force within 90 days after publication date.
The Regulation is aimed at amending and clarifying the existing rules so as to render the IDM functional and to ensure an additional platform for centralized, competitive, transparent and non-discriminatory trading and an effective supplementary tool for electricity wholesale market participants to optimize their portfolio and reduce imbalances.
The IDM remains part of the electricity wholesale market and keeps the same trading interval (i.e. one hour) of the delivery day to achieve the above objectives.
While under the existing trading system a single session is organized after all transactions on the Day Ahead Market have been concluded, the IDM, under the Regulation, will operate continuously, starting after the transmission of the daily offers on the balancing market for the relevant delivery day and ending 2 hours prior to the relevant trading interval of the actual delivery day.
The main amendments enacted through the Regulation are as follows:
- setting-up authorization holders can have access to IDM during testing period (therefore prior to holding a production licence) – which is highly relevant for generation units during coming into operation and testing period;
- the Regulation expressly indicates the cases which triggers the suspension/withdrawal of the IDM registration (i.e. non compliance with one of the requirements for registration on IDM, non compliance with the participation on IDM convention);
- each trading interval of a delivery day represents an independent market within IDM; it seems that this provision is aimed at clarifying the independent nature of each transaction performed per trading interval on the basis of a standard instrument;
- offering and trading on IDM shall be carried out between participants which remain anonymous during trading;
- if a participant registers within the same delivery day, on IDM, both electricity sale and purchase transactions, its payment obligations shall be subject to offset and OPCOM acts as a settlement operator for this market.
Also, the Regulation provides more details with respect to the actual manner of conducting the trading sessions, the correlation of the offers and the price at which the transaction is executed.
There are several procedures which are yet to be issued by OPCOM and which should further clarify the legal framework applicable to the IDM, such as: (i) a procedure containing more details regarding the organisation of IDM; (ii) a procedure regarding the procedure for the registration on IDM; (iii) a procedure regarding the financial guarantees etc.
This news alert is a high level selection of main changes envisaged, it is for general information only and is not intended to provide legal advice.