Following the decision by the EU council to extend the period under Article 50 until 31st October 2019, the UK will remain inside the Internal Energy Market.
We have been working on the various possible outcomes (Deal, No Deal or an Extension to Article 50) and during our customer forum on 12th March 2019 we took you through the details behind each of the scenarios. The slides from our forum can be found here. The information contained in these slides were correct at the date they were presented.
As a result of our work we have identified some potential changes to the Day Ahead auction and we want to give you plenty of time to implement them.
Changes to Day Ahead Auction
Following a no deal outcome, the UK will no longer be part of the Internal Energy Market (IEM) and therefore will not have access to market coupling. This means our Day Ahead auction will move from an Implicit to an Explicit auction. However, there are no changes to the Explicit Long term or Explicit Intraday products. UIoSI (Use it or Sell it) will be paid at the explicit Daily Auction clearing price.
You can find the Explicit Day Ahead Schedule here. The new Day Ahead Explicit auction will be held on the DAMAS (also known as CMS) platform and customers will have received a test environment and log in details.
If you have not received these, please email us on email@example.com. Frequently Asked Questions on the test environment can be found here. A short introduction video to the DAMAS training environment which you can watch on Youtube can be found here.
Compensation for Long Term curtailed capacity will be based on the original auction price.
Changes to invoices
As a result of using DAMAS customers will receive their Day Ahead invoices on a monthly basis rather than daily, this means that the collateral you hold with us must cover a months’ worth of Day Ahead product as opposed to one day. Please take the time to ensure that your Letters of Credit or your cash deposit accounts can cover this change in the event of a no deal.
No Deal Access Rules
Amended IFA Access Rules for use solely in the event of a non-IEM No Deal BREXIT (the “No Deal Rules”) have been approved by National Regulatory Authorities. These can be found here. Formal notice of the No Deal Rules entry into force, if required, will be provided in due course. If no such notice is issued then the current IFA Access Rules will continue in full force and effect.