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Auctions of transmission capacities - General Information

Auctions of transmission capacities - General Information
As of 1 May 2004, traders active on the Polish electricity market are enabled to use system interconnectors and thereby transmit electricity between the Polish power system and the interconnected synchronously operating systems. The congestion management mechanism has been implemented. It ensures that transmission capacity is made available to market participants according to competitive market-based rules.

In 2004 PSE S.A. allocated cross-border transmission capacities in the non-coordinated auctions due to specific circumstances. With the aim of finding the optimal solution, PSE S.A. had started together with neighboring TSOs works on negotiating and preparing the coordinated cross-border transmission capacity auctions, considered as the best way to achieve liberalization of access to cross-border capacities.

Since 2005 Polish cross-border transmission capacity was allocated at coordinated Auctions, conducted by the Auction Office placed in ČEPS. Auction Office was conducted the Auctions and provided the market participants and concerned TSOs with all relevant information.

Performance of cross-border electricity exchange requires allocation of transmission capacity by way of cross-border exchange transmission capacity reservation auctions.

The coordinated procedure was applied for common network interfaces on the basis of cross-border technical profiles derived from technical constraints between: PSE and 50HzT/ČEPS/SEPS; 50HzT and ČEPS/PSE; ČEPS and PSE; ČEPS and SEPS; PSE and SEPS; SEPS and ČEPS/PSE;. Market participants bid for commercial profiles between the two Transmission System Operators operating the neighboring systems.

From the beginning of 2010 ČEPS is no longer willing to conduct cross-border exchange transmission capacity reservation auctions. Moreover the implementation of new congestion management method FBA, which supposed to start at the begging of year 2010, was postponed due to the ask of CEE regulators in order to allow the market participants to get technically prepared. Details of the coordinated auctions are presented in the "Auction Rules".

The solution for the interim phase since the beginning of 2010 was designed in cooperation of CAO and the CEE TSOs with the focus to keep the existing procedures and technical solutions in order to minimize additional costs. CAO took over the role and was acting as the Auction Office for the 5 TSOs coordinated auction (for borders among ČEPS, SEPS, PSEO, TPS, 50HzT) since the beginning of 2010. Meanwhile, the physical allocation procedure in terms of running the IT systems has remained a task of previous auction offices in ČEPS.

From the beginning of 2011 Central Allocation Office GmbH took over the role and act as the Auction Office for the 8 TSOs coordinated auction (All CEE Region TSO’s: ČEPS, SEPS, PSEO, TENNET, 50HzT, MAVIR, APG, ELES).

Auction Participant – An individual or a legal entity taking part in the Auction Process, identified with a unique EIC-Code and successfully registered at CAO in accordance with the procedure set forth in Article 2 of the Registration Form.

Requirements for Participation in the Auction

  • Registration and Acceptance of the "Auction Rules"
  • Solvency Requirements (Guarantees) and Risk Management as described in the "Auction Rules"
  • Submission of the Bids for the reservation of Capacity according to the "Auction Rules"

Contact with the Auction Office (CAO): http://www.central-ao.com

The aim of coordinated Auction is to offer to the market participants a transparent and non-discriminatory system for Capacity allocation. Information about announcements and results of the coordinated Auctions is available on the website of the Auction Office.

Yearly, Monthly and Daily Auctions

Yearly, Monthly and Daily Auctions are conducted according to „Rules for Coordinated Auction of Transmission Capacity in the CEE-Region

Contact person in PSE S.A.:

Jakub Pios

tel. +48 22 242 13 24
fax +48 22 242 21 92
jakub.pios@pse.pl