DS3 System Services Auction Design Consultation

Today, 22nd December 2015, the SEM Committee publishes its consultation on proposed Auction Design for DS3 System Services. Successful Auction Design is a key objective in ensuring a robust and meaningful competitive procurement of DS3 System Services. As outlined in the DS3 System Services Project Plan, under Workstream 4, the TSOs were assigned the task of developing the detailed design of the auction liaising as appropriate with the Regulatory Authorities. During the summer of 2015 the TSOs engaged external professional assistance to assist with development of the principles and methodologies for certain technical design aspects of the DS3 System Service arrangements including the detailed Auction Design. The accompanying report presents the work conducted by DotEcon on this topic and highlights some important issues for consideration.

The Regulatory Authorities have reviewed the DotEcon report and have prepared this consultation to highlight key issues for industry to consider, and asks specific questions related to the design options.

In addition the SEM Committee has acknowledged that interdependency could exist between the procurement processes (including potential auction platforms for DS3 System Services and Capacity (under the development of the Capacity Remuneration Mechanism (CRM) in the I-SEM. This consultation paper therefore poses consultation questions that ask industry participants to consider the extent to which the proposals and options set out in this paper would also be appropriate in the procurement of Capacity providers within the I-SEM CRM.

For any further queries regarding this paper please contact Mo Cloonan (mcloonan@cer,ie) at the CER or Andrew McCorriston (Andrew.McCorriston@uregni.gov.uk) at the Utility Regulator by 12th Feb 2016.