1. 9th FUI Stakeholder Group Meeting Dublin, 16 June 2010
FUI Priorities
9th FUI Stakeholder Group Meeting
Dublin, 16 June 2010

2. FUI Priorities 2010 - 2012 Coordination of Long Term Auctions
Market Coupling
Addressing barriers to efficient flows
New Interconnector Investment
Balancing
(Intra Day)

3. Coordination of Long Term Auctions
Regional coordination of long term explicit auctions is a key component of the CMGs.
Main options identified in the paper are:
Full harmonisation: single set of rules leading to single auction system for FUI for all borders in the region, operated by a central body
Moderate harmonisation: matching of timeframes for auction of capacity, types of products and implementation of fully compatible systems
Gradual approach
CWE - common auction platform with capacity on interconnectors is offered separately.
TSOs proposals on coordination of long term auctions – 9th SG Meeting:
Products
Nominations
Other aspects

4. Market Coupling
Target Model - Single Price Coupling across Europe PCG, AHAG and Framework Guidelines
Implications of and development in for the FUI region
Scenario A: IFA and Britned couple GB to CWE
Scenario B: Britned interim solution for 2011, then full IFA FUI – CWE Coupling
Consideration to be given to GB/CWE - SEM coupling following this
Prerequisites to Market Coupling and other issues:
Price References
Physical Firmness
Triad Charges and other identified barriers to efficient flows

5. Addressing Barriers to efficient Flows
Key barriers identified are:
SEM design issues (gate closure, requirement to bid ½ hourly prices in SEM etc)
GB charges and Interconnector Losses, Firmness on IFA
SEM RAs to update FUI on barriers
NG will review charges and consult on possible changes in summer 2010
Ofgem consultation and conclusions considering firmness issue
Bundled products

6. New Interconnector Investment
Ofgem consultation on interconnector policy - seeks views on the appropriate framework for regulated investment.
CRE consultation on new IC investment -merchant interconnectors and how to deal with exemptions
Potential work areas for FUI include:
develop a regional model on regulated interconnector investment,
improve cross border investment climate by enhancing communication and cooperation between IC owners, potential investors and regulators
and/or develop a coordinated regulatory approach on how to deal with exemptions

7. Balancing
FUI Workstream to look at potential mechanisms for increased provision of cross border balancing services.
Work stream considering how increased competition in the provision of balancing services can be facilitated by balancing options from cross border reserve providers.
GB – France (IFA) focus to date
Model for balancing exchanges at the interconnection between France and England, known as the BALIT (BALancing Inter TSO) project – enduring solution November 2010
Compromise solution on 2hr Cross Border Balancing (CBB) product on IFA – Presentation by NG/RTE
Regulators will approve the new fee methodology
Coordination of balancing on other ICs – extension to Moyle and East West?
Links with Intra Day timeframe

8. Intra Day
FUI priority paper following target model development at EU level
Intra Day Implementation Group
Target Model – implicit continuous allocation inter regional with flexibility allowed within regions
Market based mechanism and auctions
Intermittency in FUI region and Intra Day
Intra day – balancing link

9. Conclusions Priorities 2010 -2012 Long Term Coordination
Market Coupling
Intra Day
Balancing
Address Barriers to trade
Interconnector Investment