1. *
Amendment to Appendix P to ensure correct treatment of Interconnector Unit Offer Data 29th May 2012 *
1##

2. Introduction
As Interconnector Units can submit negative Prices or Quantities, Market Exposure can occur where Commercial Offer Data (COD) includes:
Positive Prices and negative Quantities (units offer to pay to Export); or
Negative Prices and Positive Quantities (units offer to pay to Import).
Participant pays
To Export
to Import
Participant paid
to Export
Price
Quantity
SEM
Credit
Exposure 2

3. Sufficiency Check
The sufficiency check is the process by which it is verified that enough ACC is in place to cover the Offered Exposure at each GWC.
Where ACC is insufficient, those elements of COD that create an unsecured credit risk, will be excluded at the relevant GWC. 3

4. Offered Modified PQ Pairs
Following the sufficiency check the Accepted PQ Pairs become Offered Modified PQ Pairs.
This is regardless of any modification being applied.
Where ACC is sufficient:
Temporary Points are deleted
Accepted PQ Pairs = Offered Modified PQ Pairs 4

5. X X X X Offered Modified PQ Pairs LLQ HLQ
Accepted PQ Pair = Offered Modified PQ Pairs
Temporary Point
Deleted points or Excluded PQ Pairs
Example 1: ACC > Total Offered Exposure X P
Price Axis
Crossing Point X X
P3Q3
P4Q4
LLQ Point
HLQ Point
P2Q2 X
P1Q1 Q
LLQ
EA1= max(MIUEC,AIUECH)
EA2 and WD1 = MIUEC
HLQ
EA1= min(MIUIC,AIUICH)
EA2 and WD1 = MIUIC 5

6. Offered Modified PQ Pairs
Where ACC is insufficient :
Temporary Points are deleted.
All bids up to and including the area of Energy Offered Exposure are excluded.
Accepted PQ Pairs ≠ Offered Modified PQ Pairs.
The remaining non excluded PQ Pairs are renumbered.
The Low Limit Quantity is set to zero to prevent any Export. 6

7. X X X X X X X X X Offered Modified PQ Pairs PQ Pairs Temporary Point
Deleted points or Excluded PQ Pairs
Renamed PQ Pairs X
Example 1: ACC < Total Offered Exposure X P
Price Axis
Crossing Point X X X
P3Q3 X
P4Q4
P2Q2
P1Q1
P2Q2 X
LLQ
HLQ X
P1Q1 X Q
LLQ
Export Exposure
HLQ 7

8. Interconnector User offers in top left quadrant only
P2Q2
P1Q1 Q
Maximum Interconnector Unit Export Capacity
Maximum Interconnector Unit Import Capacity 8

9. X X X Current Treatment Excluded PQ Pairs P
ACC < Total Offered Exposure
No offers in right top quadrant
P2Q2 X
HLQ
P1Q1 X Q
LLQ
Import also excluded
Export excluded
HLQ 9

10. X X X X X Proposed Treatment Excluded PQ Pairs Additional PQ pair
ACC < Total Offered Exposure
No offers in right top quadrant
Additional PQ pair inserted if highest Q
index <=0 P
Additional PQ pair inserted
P2Q2 X X
HLQ
P1Q1 X
P1Q1 Q
LLQ=0
Export excluded
Import allowed
HLQ 10

11. Questions and Discussion11