GB-Ireland interconnector trading rules

CER/NIAER consultation (18 pages, PDF) on principles for trading rules over the Moyle interconnector and a potential new interconnector between Wales and Ireland. In both cases interconnector capacity allocation is assumed to be controlled by Irish rules.

The two main options proposed are "no explicit capacity right" in which the Irish SO/MO treats an interconnector as a single trading party in the Irish market, and "explicit capacity rights" (the current Moyle regime) in which different interconnector users are treated as independent trading parties in the Irish market.

The paper also explores the possibility of converting "physical" interconnector capacity rights into financial rights, so that risks arising from different despatch requirements on both sides of the interconnector would be mitigated by the interconnector operator (rather than expose traders to penal imbalance charges), with residual risk borne centrally by the interconnector operator or by the market as a whole. (But superposition is only considered as a possible future development, even under a financial rights approach.)

Short consultation period: responses by Friday 19 August 2005.

For further information or advice please contact Franck Latrémolière.

Filed under Electricity, Ofreg.

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