Brexit

This page shall provide you, our customers, with the latest information related to our preparation for and the impacts associated with Brexit.  If you have any questions that aren't answered here, please get in touch with us at [email protected]

Summary

On 31 January 2020 the UK ceased to be a member of the European Union.
Under the terms of the Withdrawal Agreement, the UK continues to follow EU Rules and to be treated as if it were an EU Member State until 23:00 on 31 December 2020.

On 9 July 2020, the European Commission confirmed in a stakeholder notice that regardless of the outcome of the FTA negotiations;

"…although electricity and gas interconnectors can of course still be used, the United Kingdom will no longer participate in the Union’s dedicated platforms. Alternative fall-back solutions will be used instead to trade electricity on interconnectors with Great Britain.”

The most significant impact of this is that trade across IFA and IFA2 will move to explicit auctions across all timescales, hence capacity will no longer be traded via the EU’s Day Ahead Market Coupling process. This can be seen detailed in the below section.

Implications (Key Changes)

1. Access Rules
   
   The current IEM Access Rules shall be withdrawn at 23:59 on 30 December 2020, with the new non-IEM Access Rules coming into force from 00:00 on 31 December 2020. Please visit here to view these Access Rules.
   
   
   
   
2. Day Ahead Product
   

   Day Ahead implicit auctions will cease, to be replaced by an explicit day ahead auction, hosted on the JAO platform for both IFA and IFA2.

   DA Auction Window 09:40-10:00 CET
   DA Nomination Window 12:05-14:00 CET
   

   UIOSI - Unused LT capacity will be re-allocated in the Day Ahead explicit auction, and hence will be paid out at the clearing price of this auction.
   
   

3. Long Term Nomination Gates

   Both IFA's and IFA2's Nomination Gates will change as below;
   
   LT Nomination Gate Opens      16:30 CET (D-2)
   LT Nomination Gate Closes      09:00 CET (D-1)
   
   
4. Curtailment

   NGIC's and RTE's preference had been to provide a market spread–based compensation, however this has not been possible for the initial phase of non-IEM operation. Consequently compensation will be as follows:

   Initial Price Paid for LT capacity curtailed prior to the Day Ahead Firmness Deadline;
   Day Ahead explicit auction price for LT capacity curtailed after the Day Ahead Firmness Deadline.
   
   

5. Invoicing/Collateral
   

   Day ahead explicit auctions will be invoiced monthly. Customers should ensure they maintain sufficient credit with JAO to secure against potentially 6-7 weeks of DA commitment (in addition to collateral held against other timescales).

 6. Customs Declarations

In preparation for Great Britain’s departure from the Internal Energy Market on 1st January 2021, we wish to inform you of the changes that will take place on customs declarations when trading electricity between Great Britain and France.

 Great Britain

In Great Britain, National Grid will make import/export declarations on behalf of market participants for flows on the IFA and IFA2 Interconnectors.  There are therefore no further actions market participants need to take in GB.

 France

In France, RTE will NOT be completing the custom declarations. Therefore market parties will need to make their own customs declarations for IFA and IFA2.

Market parties are invited to contact the ‘Pôle d'Activité Economique’ (PAE) of the regional customs directorate, who will provide further detail on what steps to take. The directory of customs services can be consulted at the following address: https://www.douane.gouv.fr/carte-interactive-des-services-douaniers-ouverts-au-public .