Consultation on enduring licensing and contractual framework under SEM

Published: 31 May 2007

Consultation opened on 31 May 2007. Consultation closed 27 June 2007.

Summary

The proposed introduction of the Single Electricity Market (SEM) in the Island of Ireland has required changes, in both the Republic of Ireland and Northern Ireland, to the statutory framework underpinning the wholesale electricity arrangements as well as the supporting licensing and contractual framework. On the 2nd February 2007 the Regulatory Authorities published a consultation “Enduring Licensing and Contractual Framework Applying under the SEM and associated changes for EU Directive Compliance in Northern Ireland”, AIP/SEM/07/11 describing the overall changes in Northern Ireland.

The proposed introduction of the Single Electricity Market (SEM) in the Island of Ireland has required changes, in both the Republic of Ireland and Northern Ireland, to the statutory framework underpinning the wholesale electricity arrangements as well as the supporting licensing and contractual framework. On the 2nd February 2007 the Regulatory Authorities published a consultation “Enduring Licensing and Contractual Framework Applying under the SEM and associated changes for EU Directive Compliance in Northern Ireland”, AIP/SEM/07/11 describing the overall changes in Northern Ireland.

One of the significant changes in Northern Ireland as a result of the introduction of the SEM is the establishment of a new system operator transmission licence along with associated changes to the transmission ownership licence. The role of system operator will be carried out by a separately licensed company which will be separate from the transmission owner, as well as any generation and supply affiliates. This is different from the present situation where although system operation is carried out by a separate company from the transmission owner, it carries out this role effectively as agent for the transmission owner under a single transmission licence.

The contractual relationship between the system operator and the transmission owner is one of enduring regulatory interest. Changes to the contractual relationship will be subject to regulatory scrutiny and approval.

The Regulatory Authorities would be interested to receive the views and comments of interested parties on the proposals contained within this consultation. The Regulatory Authorities intend to publish all comments received. If any respondent wishes certain sections of their submission to remain confidential they should submit these sections as an appendix marked confidential. Comments on this paper,  should be forwarded to Barbara Cantley, preferably in electronic form and not later than 5.00pm on the 27th June 2007:

email: Barbara.Cantley@niaur.gov.uk

A paper copy can be obtained by contacting:

Barbara Cantley
Northern Ireland Authority for Utility Regulation
Queens House
14 Queen Street
Belfast
BT1 6ER

A copy of the paper will be made available in large print, Braille, audio cassette and a variety of relevant minority languages if required.

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