Notice to Operators about Obligations Arising from Articles 8.4 and 8.6 of the “Testo Integrato del Monitoraggio del Mercato” (Integrated Text of Market Monitoring) - AEEG’s Decision ARG/elt 115/08
This document describes the set of data that Italian Electricity Market Participants are required to report to GME in compliance with articles 8.4 and 8.6 of Decision ARG/elt 115/09 (hereinafter called “TIMM”), adopted by the “Autorità per l’Energia Elettrica e il Gas” (Italian electricity and gas regulator, hereinafter called “AEEG”).
Under article 8.4 of the TIMM “within the 15th day of the month following the one of trading, Electricity Market Participants shall declare to GME the sales and purchases of financial derivatives on electricity traded in the Electricity Market that they have concluded directly or indirectly through any type of intermediation. The declaration procedure shall be defined by GME”.
Moreover, under article 8.6 of the TIMM, “within the close of the Day-Ahead Market (MGP), Electricity Market Participants may declare to GME the hourly available capacity shares of each unit for which they have been delegated by the related dispatching user to submit offers/bids in the MGP. The declaration procedure shall be defined by GME. Failing such declaration and for the purpose of calculating the monitoring indexes referred herein, GME shall assume the declaration issued by the same dispatching user under article 18, para. 18.3 b) of AEEG’s Decision 111/06 to be valid”.
Finally, in its subsequent letters of 17 Oct. 2008 and 20 Nov. 2008, AEEG’s “Direzione Mercati” (Department of Markets) notified GME of the data referred to in the above-mentioned articles, as well as of the validation criteria that GME shall apply in collecting and processing the same data.
The following paragraphs describe the data to be mandatorily reported, as well as the collection procedures adopted by GME. GME will indicatively start the collection of the data on 1 Apr. 2009. This time interval will enable GME to develop a special electronic platform and operators to prepare their reporting systems.
However, on the above date, operators must be ready to report their data retroactively from 1 Jan. 2009.
DATA REFERRED TO IN ARTICLE 8.4 OF THE TIMM
Market Participants (whether in injection mode or withdrawal mode) are required to report all the financial contracts that they have concluded directly or indirectly (e.g. through a financial intermediary, a parent company or a subsidiary) with any counterparties.
Two types of contracts shall be reported:
- contracts under which the selling party receives a consideration which is not correlated or only partially correlated with the price of electricity in the Electricity Market, in exchange for the delivery of electricity to the purchasing party and/or for a consideration to the purchasing party which is correlated with the price of electricity in the Electricity Market;
- contracts under which the selling party receives a consideration which is correlated – under predetermined criteria - with the price of electricity in the Electricity Market, in exchange for a consideration to the purchasing party which is correlated – under criteria other than those predetermined for the selling party - with the price of electricity in the Electricity Market.
The contracts shall be reported on a monthly basis in respect of purchases and sales of derivatives traded in the previous month.
For each contract, electricity operators shall report the following hourly data:
· contract code: unique alphanumerical code that is assigned by the sender and that identifies the individual contracts;
[1]
· sending code: contract code followed by the year/month in the YYYYMM format and identifying the tranche of a single contract which is being sent. This field uniquely identifies the tranche of a given contract which has been sent;
[2]
· selling party: ETSO code of the operator involved; if the operator is not a Market Participant, the VAT number must be specified;
· purchasing party: ETSO code of the operator involved; if the operator is not a Market Participant, the VAT number must be specified;
· type of contract: standard (contract traded in the regulated market), regulated OTC (over-the-counter contract for which the contracting parties have used the services provided by a regulated market), OTC (over-the-counter contract other than the previous one);
· regulated market: code of the regulated market where the contract is traded or where the services for the contract are provided;
· contract structure: future, forward, swap (two-way Contract-for-Difference), option (one-way Contract-for-Difference), other. Indexed contracts, if any, belong to one of the above four types; the nature of such indexing must be specified in the “indexing” field;
· contract description: this field is to be completed only if the contract structure is “other”; the contract structure must be specified and, if the contract has a mixed structure among those typified above, the percentages of volumes pertaining to each structure must be specified;
· date of conclusion of the contract: in the yyyymmdd format;
· start date of delivery period: in the yyyymmdd format;
· end date of delivery period: in the yyyymmdd format;
· date: in the in the yyyymmdd format;
· time: in the hh format;
· hourly quantity agreed: in MW, with two decimals;
· forward price established upon conclusion of the contract: expressed in €/MWh. If the contract has some form of indexing, this price may take on different values over time;
· indexing: this field must be completed only if the contract is an option whose strike price is subject to some form of indexing; this field contains the description of the price-indexing formula;
· premium quoted in the contract: expressed in €/MWh; this premium must be specified, for instance, in the case of options;
· other relevant variables: describe and specify the value, if any, of typical variables in addition to the above-listed ones, if the contract involved has been classified as “other” in the “contract structure” field.
The data must be reported by daily uploading XML files to a platform specially designed by GME. The data collection platform will carry out the following formal validations of the received data, by checking:
· whether the username and password identifying the sender are correct;
· whether the data have been sent within the maximum time limit established in accordance with the TIMM. In particular, the data must be reported within 12:00 of the 15th day following the month to which they refer;
· whether the type of character used for each field is valid (text format, numerical format, etc.);
· when receiving a contract, whether another contract with the same “sending code” has been sent and whether it perfectly matches the previous one. If the outcome is positive, the platform will add a “confirmed” field to the original contract, assigning the value YES to it; if the outcome is negative, the platform will reject the second contract received, notifying the sender thereof. The sender of the accepted contracts will be able to view the same contracts.
DATA REFERRED TO IN ARTICLE 8.6 OF THE TIMM
Electricity operators are required to report the following data for each hour and each unit in respect of which they are entitled to submit offers/bids as dispatching users or as users delegated by dispatching users:
- Date: in the yyyymmdd format;
- Time: in the hh format;
- Unit: identified by the unit code assigned by Terna;
- Operator code: identified by the ETSO code;
- Share of available capacity: percentage value.
The data collection platform will carry out the following formal validations on the received data, by checking:
· whether the username and password identifying the sender are correct;
· whether the data have been sent within the maximum time limit established in accordance with the TIMM. In particular, the data must be reported within 12:00 of the day on which the related offers/bids are submitted;
· whether the sender is a dispatching user of the unit to which the margins refer or has been delegated to submit offers/bids in respect of such unit;
· whether the type of character used for each field is valid (text format, numerical format, etc.);
· all the data received within the above time limit will overwrite the data already received from the same operator for the same hours and the same units;
· whether the hourly data of each capacity is lower than or equal to 1.
Upon expiration of the time limit for reporting the data, the data collection platform will carry out the following formal validations on the received data, by checking:
- whether the sum of the shares of capacity which have been notified in respect of a same unit are equal to 1; otherwise, all the capacity shares notified on the PCE will apply;
- all the data received within the above time limit will overwrite those already received from the same operator for the same unit and the same hour;
- the sender will be able to view the reported data, as possibly corrected.
Additional details on the data collection procedures, file formats and reporting time limits will be notified at a later state.
Rome, 19 December 2008
[1] Use might be made of a scheme of codes defined by GME to avoid the risk that two non-counterparty operators might select the same code.
[2] Use might be made of a scheme of codes defined by GME to avoid the risk that two non-counterparty operators might select the same code.