Power Economics in Liberalised Electricity Markets

Power Economics in Liberalised
Electricity Markets
Lecture at Aachen University of Technology
- 3. lecture, chapters 3.1.5 to 3.2.2 -
Dr.-Ing. Jochen Kreusel
3. The Liberalised Electricity Market

3.1 Introduction (cont’d)
3.1.5 Germany
3.1.6 International Examples: Summary
3.2 Tasks within the Different Market Roles
3.2.1 Technical Organisation of Power Systems
3.2.2 The Service Market
Literature to Chapters 3.1.5 to 3.2.2
Power Economics
in Liberalised Electricity Markets T3_03_E.ppt / p1 / 03-06-06
3.1 Introduction (cont’d)
Discussed in chapter 3 so far

• basic principles of privatisation and liberalisation of electricity markets
• important market roles (in general)
• overview of international examples (except Germany)
• first introduction to different market organisations
Next subjects
• development in Germany
• more detailed discussion of the tasks within the market roles
• differentiated between service and competitive market
• main example Germany
– most relevant from location point of view in Aachen
– one of the most advanced and most modern markets liberalised lately
– opened completely from the very beginning
– can be easily extended to further countries
Power Economics
3.1 Introduction
3.1.5 Germany
European Environment - EU Electricity Act [1]
Effective since February 19, 1997,
§
national implementation until 1999
Stepwise opening of the markets
• at least 23% from 1999 onwards (consumers > 40 GWh)
• at least 27% 3 years later (consumers > 20 GWh)
• at least 33% after the next three years (consumers > 9 GWh)
Grid access through either NTPA or Single Buyer
• “service public” must not disturb competition
Protection clause
• reciprocity
EU countries decide by themselves, whether
• NTPA or Single Buyer
• electricity markets are opened more than required
• distribution companies are accepted as energy customers (at least in the
same way as their customers)
Power Economics
3.1 Introduction
3.1.5 Germany
European Environment - EU Electricity Act [1]
Update November 25, 2002 for electricity and gas markets
§
(enforcement of liberalisation)
Market opening
• market opening for all consumers except households
latest until July 1, 2004
• full market opening latest until July 1, 2007
• EU Commission will present detailed report on experiences in January 2006 and
proposes corrective actions, if necessary
Unbundling
• legal unbundling of generators and transmission network operators from July 1, 2004
• legal unbundling of generators and distribution network operators from July 1, 2007
• exceptions accepted for suppliers with less than 100.000 customers and small,
isolated networks
Other issues
• members states must nominate one or several regulating authorities
• sources of energy and ecological impact (in particular CO 2 emissions) have to be
shown on electricity bills
Power Economics
3.1 Introduction
3.1.5 Germany
Implementation in Germany
Energy Industry Act [2] effective since April 24, 1998

• complete opening of retail market
• negotiated third party access (NTPA): transparent, open, non-discriminating
• organisational unbundling (not legal)
May 1998: first Associations Agreement as grid access contract [3]
• use of system fee based on transactions
• network operator had monopoly for balancing power
• in effect until September 30, 1999 (pilot phase)
additional, technical codes during 1998/1999:
Grid Code [4], Distribution Code [5], Metering Code [6]
Power Economics
3.1 Introduction
3.1.5 Germany
December 1999: 2nd Associations Agreement [7]

• network access fee instead of transaction based fee
• applicable for power exchanges
• again limited for two years only
December 2001: Updated 2nd Associations Agreement (VV II plus, [8])
• no basic changes
• system for regional comparison of use of system fees based on structural
characteristics
– population
– share of cables
– ...
• standards for data exchange ⇒ not limited to pricing any more
• valid until December 31, 2003 (again two years)
Power Economics
3.1 Introduction
3.1.5 Germany
Autumn 2001: installation of ex-post control authority as department
of Federal Cartel Authority
• decisions are effective immediately
• started immediately with investigations of use of system fees of about 20
network operators
• first decisions on too high fees during 2002
• fundamental decision in February 2003 (TEAG case):
4 % ROCE accepted because of low (neglectible) risk
Since 2002: discussions on novel of Energy Industry Act
• ongoing discussions on ex-ante regulator
• discussion, whether Associations Agreements could get character of law
• novel expected in 2003
March 2003: decision to introduce regulator effective July 1, 2004
Power Economics
3.1 Introduction
3.1.5 Germany
First Associations Agreement (VV I)
Use of system fee
• principle: activity based costing, derived from individual transaction
• capacity and energy, but not distance depending components for distribution
• additional distance depending component for use of transmission grid
Balancing power
• single buyer market, responsibility with distribution companies
• consolidation only within each distribution grid
Handling
• schedules had to be submitted to distribution companies for each customer
• settlement undefined
Experience
• individual transactions cannot be identified
• consolidation potential of balancing energy not attractive for ESPs
• no procedure for consumers with energy meters (e. g. households)
Power Economics
3.1 Introduction
3.1.5 Germany
Calculation of UOS fee

• starting point: voltage level at
consumption point feeding out
• relevant distance: air distance LV
between feeding in and feeding out
• if distance above statistical threshold MV
distances:
HV
– consideration of next part of UOS fee
– calculation of transformation fee
• transmission UOS fee depending on
distance
statistical
threshold feeding in
distance
fig 3.15: statistical threshold distances in the
German Associations Agreement I
Power Economics
3.1 Introduction
3.1.5 Germany
Second Associations Agreement (VV II, VV II plus)
Use of system fee
• grid connection fee for generators and consumers
• generator fee set to 0 for the beginning
• T component for transmission between Northern and Southern trading area,
applied for the consolidated transmission capacity (not applied any more)
• not related to individual transactions, compliant with power exchanges
Balancing power
• new market role balance circle responsible (competitive)
• business purpose: improved prognosis in large collectives
• balance circles are restricted to control areas
• within one control area the number of balance circles is unlimited
Handling
• schedules (normally) have to be sent to the balance circle responsibles only
• significantly simplified compared to Associations Agreement I
Power Economics
3.1 Introduction
3.1.5 Germany
Calculation of UOS fee feeding in

• annual fee HV costs HV
• costs are forwarded hierarchically from
higher to lower voltage levels
• fee is invoiced at connection point HV costs
• fee depends on voltage level at MV costs MV

connection point
Principles and further input
• causality LV
HV costs
• utilisation
MV costs
• ordered reserve capacity
connection
• ancillary services and losses covered costs
by a fixed fee feeding out
fig 3.16: cost forwarding in the German
Associations Agreement II
Power Economics
3.1 Introduction
3.1.5 Germany
Further Information
System operation
• traditionally decentralised system
• continued by VV I and VV II: no central institutions in addition to network
control centres of the transmission companies
• advantage: can be extended in European environment
Development of competition 1998/1999 (market opening)

• summer 1998: industrial and commercial customers change suppliers
• aggressive competition by price, mainly driven by "old" players
• summer 1999: market entry of Yello and RWE's brand „avanza“ open
competition for household consumers
• drivers of competition are the suppliers
• no infrastructure for this business existed
• prices dropped between 20 % and 40 %
Power Economics
3.1 Introduction
3.1.5 Germany
Transmission Transmission transmission grid
(ownership, virtual entity)
System Operator System Operator
(operation) (operation) ...
distribution company distribution company

...
consumer generator consumer generator
regulated market
competitive market
balance circle balance circle contracts
responsible responsible information (individual)
information (integral)
border of
transmission grid
energy service provider
(retailer)
fig 3.17: German market model (extended centralised market)
Power Economics
3.1 Introduction
market role USA (California) Great Britain Scandinavia Germany
pool NETA
generation competitive pool (single competitive competitive competitive wholesale
wholesale market buyer) and wholesale market wholesale market market
contracts for
differences
central 1 state owned and pool power exchange PX in Leipzig, futures
markets private PX, futures (NordPool and EL- and spot; balancing
and spot markets, EX in Finland), futu- energy markets offered
balancing energy res and spot market by TSOs
system Independent National Grid National Grid Svenska Kraftnät, 4 transm. grid operators,
operation System Operator Company Company Statnet, FinGrid 8 control areas
balance co- Independent n/a National Grid Svenska Kraftnät, 4 transm. grid operators,
ordination System Operator Company Statnet, FinGrid 8 control areas
transmission several companies, National Grid National Grid Svenska Kraftnät, transm. comp. act as
grid regulated Company Company Statnet, FinGrid one market participant
distribution monopoly monopoly monopoly monopoly monopoly
grid
balancing retail comp. through n/a National Grid retail comp. through retail comp. through
power sched. coordina- Company, single bal. circles, primary balance circles, primary
tors, primary buyer market single buyer market single buyer
market single buyer
retail without restr. possi- without without without restrictions without restrictions from
competition ble since 1997, restrictions since restrictions since since 1999 the beginning (1998)
municipal decision 1999 1999
table 3.4: summary of international examples of liberalisation

Power Economics
3.1 Introduction
country TSO/TO/SO status ownership geogr. degree of trans-

unbundling coverage ext. inter- mission
conn. * tariffs
Germany RWE, E.ON, EnBW, legal private regional 10 % low
Vattenfall Europe
France RTE management public country 9% medium
Italy GRTN (SO), ownership (SO), private/ country 7% medium
TERNA (TO) legal (TO) public
Great Brit. National Grid ownership private country 3% medium
Sweden Svenska Kraftnät ownership public country 23 % low
Spain Red Electrica de ownership private country 3% high
Espana (REE)
Austria APG, TIRAG, VKW legal priv./ public regional 22 % medium
Switzer- Atel, BKW, EGL, legal private/ regional 36 % no inf.
land EOS, NOK, CKW public
Poland PSE legal public country 8% no inf.
Czechia CEPS legal priv./ public country 20 % no inf.
* degree of external interconnection: ratio between import capacity and total transmission capacity of system
table 3.5: comparison of transmission grids of selected European countries [10]

Power Economics
The challenge of operating power systems
• load and generation have to be in balance permanently
• load is not known
• generation may have unplanned outages
• additional operational constraints
– minimum capacity of power stations
– limited capacity gradients, in particular stations with low costs
Solution
• load forecast ⇒ load schedule
• generation planning based on these schedules
– unit commitment: which stations are active and which not
– load dispatch: which stations deliver which capacity at which time
⇒ generation schedules
• limited number of power stations is prepared to balance load and
generation (frequency control)
Power Economics
18 10
balance and control
schedule of stations
energy (plan) 9
16 in system control
8 schedule of stations
14 not in system control
7
balance power (MW)

schedule base load
12
capacity (MW)
6
10 real load
station outage
5
8 load forecast
4
6 base load generation
3
4 real base and non-
2
ctrl. generation
2 balance and control energy 1 balance power
(real), must be positive
0 0
1 5 9 13 17 21
time
fig. 3.18: generation planning and operation
Power Economics
Control power and energy
• physical coverage of difference between system load and planned generation
• phased approach
instantaneous reserve (cinetic energy)
change of load to stand-by reserve (hot stations)
...
be compensated
adapted load
dispatch adapted unit
... commitment
0 (e.g. station outage) time
fig. 3.19: phased compensation of an outage of a power station
Balancing energy
• difference between load and generation of one market participant
• commercial product that can be covered both by scheduled generation and by
control capacity
• only relevant in liberalised markets
Power Economics
Service market
• monopoly
• market infrastructure
• control functions
Market control
• market supervision
• in particular of monopoly market
System operator
• transfers results from commercial process into technical operation
• responsible for safety and quality of supply (voltage and frequency)
• may change unit commitment and load dispatch in case of congestion
• contracts capacity for control energy and spinning reserve
• central authority in settlement of balancing energy
Network operator and meter data provider
• responsible for infrastructure (transmission and distribution network)
• registration and enrolment („market administration“)
• meter data provision
Power Economics
3.2.2.1 Market Control
Tasks
• (participation in) definition of market rules
• approval of market rules
– who may or must do what and when?
– how to co-operate (procedures, response times, technical definitions)?
• supervision of monopoly services
– prices
– quality (reliability of supply, compliance with response requirements, ...)
• supervision of competitive markets
– limitation of market share of market participants
– identification of (forbidden) mechanisms for influencing prices
Power Economics
Implementation 1: Regulator
• most usual approach for monopoly markets
• governmental institutions (e. g. OFGEM in Great Britain)
• active monopoly market governance
– ex-ante supervision (approving authority) of rules and prices
– (usually) active pricing
Implementation 2: Supervising Authority

• market participants define market by themselves
• supervisions of abuse, active counteractions (ex-post supervision)
• application for monopoly markets
– pricing by “as if competition”
– only one example so far: Germany (will be replaced by regulator in July 2004)
• usual approach for competitive markets (cartel authorities)
Power Economics
regulator supervision authority (Germany)

advantages • early, complete and binding definition • consequent use of knowledge of
of market rules market participants by delegation of
• permanent control of compliance with tasks
market rules • lead very fast to working market rules
• active price supervision: clear definition in the German case
of accepted market standards, mid- • good acceptance of market rules by
term guidance involvement of market participants
• low effort
disadvantages • high effort • no ex-ante control of market rules and
• knowledge of market participants used standards
inefficiently and unsufficiently • clearing after abuse
• strong dependency of whole market on • higher entry barrier for new market
quality of regulator participants
• tendency to inflexibility • less pressure on service prices
because of “as if competition”
table 3.6: comparison of regulator and supervision authority

as means of service (monopoly) market supervision
Power Economics
3.2.2.2 System Operator
Situation in Germany
• 4 control areas (originally 8)
– within his control area the TSO is
responsible for operation
– balancing of different consumers Vattenfall
only within control areas Europe
RWE
• originally 2 trading areas
– transmission charge for the net E.ON
exchange between trading areas
– similar for international exchanges
– not applied in Germany any more EnBW
– EU forces non-transaction based
approach for international transport
fig. 3.20: control areas in Germany
Power Economics
System Operator - changes because of liberalisation
activity monopoly liberalised market

(network control centre/dispatch centre) (system operator)
operation • long-term planning (energy planning) • GenCos submit schedules
• unit comittment • voltage and frequency control with
• load dispatch power stations for reactive power and
spinning reserve, which have to be
• voltage and frequency control contracted by the System Operator
congestion • integral part of planning process • adaptation (maybe iterative), if
management market result leads to technically
critical situation
tasks after • no necessity • settlement
operation
• invoicing of balancing energy and
ancillary services
• provision of meter data
(transmission level only)
table 3.7: comparison of tasks of system operator before and after liberalisation
Power Economics
System Operator - tasks before operation
Task
• planning of balancing energy needed
• planning of reactive power generation
• safety calculations
• co-ordination with other control areas
Activities
• power stations must submit
– schedules
– outages above 5 MW
• network users (DisCos and big consumers) must submit: outages > 5 MW
• balance circles submit
– import or export to or from control area (schedules)
– load schedules (basis for billing)
Power Economics
Activities (cont'd)
• area load forecast is known
• remaining net demand of control area can be calculated
Pnet demand , control area = ∑ Pindep . stations − Pload forecast − ∑ PBC − exp ort
• information on imports and exports of the balance circles has to be

submitted from both sides and thus can be checked on consistency
• based on this information
– safety calculation
– planning of generation of balancing energy
can be carried out
Power Economics
s s
control area
BC s ~ FP
~ station for control
~
~ station of an independent GenCo
~ s DisCo s
s data exchange:
DisCo s
~ s: schedule
m: metered data
s cons. s blank: no exchange
~
BC s s BC balance circle
DisCo distribution network operator
s
cons. consumer connected to the
transmission grid
fig. 3.21: data exchange with System Operator before operation
Power Economics
System Operator - settlement and billing
Task
• identification of deviations between plan and operation
• invoicing of balancing energy
• provision of meter data for consumers connected to the transmission grid
• not: invoicing of charges for use of transmission system and ancillary services!
Required
• provision of meter data from stations and HV consumers to balance circles
• balancing power consumed by the balance circles
• cost distribution for balancing energy according to consumption
Preal, BC − Psched., BC
K balance, BC = K balance, total ⋅
∑ Preal, BC − Psched ., BC
all BC
Power Economics
System Operator - settlement and billing
m m
control area
BC ts ~ FP
~ m station for control
~
~ DisCo m
~ station of an independent GenCo
DisCo m m s data exchange:

~ ts: time series (aggregated data)
m: metered data
~ cons. blank: no exchange
BC ts
BC balance circle
m
m DisCo distribution network operator
NOTE: Settlement of both consumers cons. consumer connected to the
and generators is handled by balance transmission grid
circles. Therefore there is no direct
interaction with the System Operator.
fig. 3.22: data exchange with System Operator after operation
Power Economics
System Operator - example: California ISO
Scheduling Infrastructure Balance of Business Systems
• schedules
WEnet))
Intranet
Bidding & Schedule Settlements

(WEnet
• prices
Management
metering
settlements Billing & Credit
Market Information
Publishing schedules
Admin. Systems
• load forecasts
• bids/schedules
Scheduling Applications •A/S actuals

• public information •AGC actuals
• adjusted schedules Ancillary Services
• A/S sched. & prices
Scheduling & Pricing Power Management System
• Congestion Prices
• “Must Run” & Over
Generation Sched. Congestion Mngmt • net interchange
• gen. loss multiplier
• Tx utilization & Pricing • balancing energy Network Security
Over Gen. Mitigation •Network Model System Dispatch
•Dispatch Info.
Balancing Market &
Ex-Post Pricing
Transmission
Power Economics
in Liberalised Electricity Markets
Assessment
T3_03_E.ppt / p30 / 03-06-06 ABB
System Operator - example: California ISO, markets and products
General
• physical market (no futures market)
• "day ahead": 24 separate, hourly markets
• "hour ahead"
• price zones in case of congestion
Energy
• production/consumption
• trading between systems / import and export
Ancillary Services
• spinning reserve
• non-spinning reserve (generation / controllable loads)
• control
• reactive power and voltage control
• system re-construction (black start)
Power Economics
in Liberalised Electricity Markets T3_03_E.ppt / p31 / 03-06-06 ABB
3.2.2.3 Network Operator and Meter Data Provider
Tasks
Area of activity
• transmission and distribution network
• metering infrastructure
• in Germany combined in one market role
Providing of infrastructure
• basic planning
• assuring the required level of reliability of supply
Registration and enrolment (“market administration”)
• Who does when with whom which business?
• very important market role
Power Economics
Tasks - cont'd
Scheduling
• synthesis of schedules for all non-time-based customers
Meter data provision

• in principle accessible for all market participants
• controlled access
Invoicing of use of system fees
• for coverage of own cost
• to be forwarded to other network operators
(sub-transmission and transmission grid)
Power Economics
manually
• network connection
registr. of market participants
pre- contracts
contract management
paration • network access
enrolment contracts
business partners per supply point
automated workflows
operation contract execution
meter data management • individual and

aggregated meter data
meter data collection and processing
analysis settlement
calculation of derived time series
billing • in line with contracts

fees for use of system and other services
fig. 3.23: workflow of distribution network operator and meter data provider
Power Economics
Network operator: registration and enrolment
Task
• registration of all contractual relations in the market
– use of system by consumers or energy service providers
– use of system by generators
– related balance circles
– not: supply contracts between generators and ESPs or traders
• handling of network access
– normally administrative checks only (completeness and consistency of data,
correct handling of preceding contracts)
– in case of a published congestion schedules have to be approved
• definition of information exchange
– medium
– formats
– schedule
Power Economics
Network operator: registration and enrolment - cont'd
Realisation in two steps:
• registration of market participants: manually

– generators, balance circles, network operators,
energy service providers, network customers
– contract management
– terms and conditions of co-operation
• change of supplier: automated
Power Economics
ESP/balance circle DisCo/TransCo network
registration
(competitive market) (service market) customers

network connection contract
• connection capacity
registration request • meter type
all players in all real estate owners in network
check
the network all electricity consumers in network
confirmation or request for network access contract
modification • use of system fee
request to supply customer 1

• customer data
• balance circle
• date of supplier change
ESP new formal check ESP:
ESP: energy
energyservice
serviceprovider
provider
enrolment
BC:
BC: balance
balancecircle
circle
DisCo:
DisCo: distribution
distributionnetwork
networkoperator
operator
correction TransCo:
TransCo:transmission
transmissionnetwork
networkoperator
operator
qualified rejection
ESP new OK?
N
Y
ESP old information customer 1
clearing
rejection execution of change of supplier

ESP new objection? • reading of meter
Y N • sending of meter data to ESPold
• re-configuration of automatic data exchange
fig. 3.24: registration and enrolment process
Power Economics
[1] Directive 96/92/EG of the European Parliament and of the European Council, dated December 13,
1996, regarding common rules for the electricity market.
[2] Law on the supply with electricity and gas (Energiewirtschaftsgesetz - EnWG),
April 24, 1998 (BGBl I S. 730)1 (BGBl III 752-2)
[3] Vereinigung Deutscher Elektrizitätswerke (VDEW) e. V.; Bundesverband der Deutschen Industrie
e. V.; VIK Verband der Industriellen Energie- und Kraftwirtschaft e. V.
Verbändevereinbarung über Kriterien zur Bestimmung von Durchleitungsentgelten.
(Associations Agreement on Criteria to Calculate Use of System Fees.)
Berlin, Essen, Frankfurt a. M., May 22, 1998
[4] Deutsche Verbundgesellschaft e. V.
Der GridCode - Kooperationsregeln für die deutschen Übertragungsnetzbetreiber.
(The GridCode - Co-operation Rules for the German Transmission Grid Operators.)
Heidelberg, 1998
[5] Vereinigung Deutscher Elektrizitätswerke - VDEW - e. V.
Netzregeln für den Zugang zu den Verteilungsnetzen. Distribution Code.
(Rules for Accessing the Distribution Networks. Distribution Code.)
Frankfurt a.M., July 1999
Power Economics
[6] Vereinigung Deutscher Elektrizitätswerke - VDEW - e. V.
VDEW-Richtlinie "Abrechnungszählung und Datenbereitstellung". Metering Code.
(VDEW Directive "Metering for Billing and Data Provision". Metering Code.)
Frankfurt a.M., May 1999
[7] Vereinigung Deutscher Elektrizitätswerke - (VDEW) - e. V.; Bundesverband der Deutschen
Industrie e. V.; VIK Verband der Industriellen Energie- und Kraftwirtschaft e. V.
Verbändevereinbarung über Kriterien zur Bestimmung von Netznutzungsentgelten für elektrische
Energie.
(Associations Agreement on Criteria for Calculation of Use of System Fees for Electrical Energy.)
Berlin, Essen, Frankfurt a. M., December 13, 1999
[8] Bundesverband der Deutschen Industrie e. V. (BDI); VIK Verband der Industriellen Energie- und
Kraftwirtschaft e. V.; Verband der Elektrizitätswirtschaft - (VDEW) - e. V.; Verband der
Netzbetreiber - VDN - beim VDEW; Arbeitsgemeinschaft regionaler Energieversorgungs-
Unternehmen -ARE - e.V.; Verband kommunaler Unternehmen -VKU - e.V.
Verbändevereinbarung über Kriterien zur Bestimmung von Netznutzungsentgelten für elektrische
Energie und über Prinzipien der Netznutzung.
(Associations Agreement on Criteria for Calculation of Use of System Fees for Electrical Energy
and on Principles of Third Party Access.)
Berlin, Essen, Hanover, Cologne, December 13, 2001
Power Economics
[9] Vereinigung der deutschen Elektrizitätswerke - VDEW - e. V.
DistributionCode 2000 - Regeln für den Zugang zu den Verteilungsnetzen.
(DistributionCode 2000 - Rules for Accessing the Distribution Grid.)
Frankfurt a. M., October 23, 2000
[10] Maier, K.-D., Dotzenrath, A.-I.
Transport- und Distributionsnetze: Unternehmerische Herausforderungen (Teil 1) .
Vereinigte Wirtschaftsdienste GmbH (vwd), energy weekly, March 14, 2003
[11] Hunt, S.; Shuttleworth, G.
Competition and Choice in Electricity.
John Wiley & Sons, 1996
[12] Kreusel, J.; Linden, F.-W.
Kommunikationsprozesse für den Betrieb von Übertragungsnetzen.
(Communication Processes for Operation of Transmission Grids.)
ETG-Fachbericht Nr. 80, Proceedings of ETG/EUREL/FGH Conference ”Neue
Kommunikationstechniken für den Elektrizitätsmarkt” (New Communication Technologies for
Electricity Markets), March 21/22, 2000, Duisburg, VDE-Verlag, Berlin/Offenbach, pp. 23-30
Power Economics

Power Economics in Liberalised Electricity Markets

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Power Economics in Liberalised Electricity Markets

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Power Economics in Liberalised

Dr.-Ing. Jochen Kreusel

3. The Liberalised Electricity Market

Discussed in chapter 3 so far

Energy Industry Act [2] effective since April 24, 1998

December 1999: 2nd Associations Agreement [7]

Calculation of UOS fee

Calculation of UOS fee feeding in

• fee depends on voltage level at MV costs MV

Development of competition 1998/1999 (market opening)

distribution company distribution company

table 3.4: summary of international examples of liberalisation

country TSO/TO/SO status ownership geogr. degree of trans-

table 3.5: comparison of transmission grids of selected European countries [10]

balance power (MW)

Implementation 2: Supervising Authority

regulator supervision authority (Germany)

table 3.6: comparison of regulator and supervision authority

activity monopoly liberalised market

• information on imports and exports of the balance circles has to be

fig. 3.21: data exchange with System Operator before operation

DisCo m m s data exchange:

fig. 3.22: data exchange with System Operator after operation

Bidding & Schedule Settlements

Scheduling Applications •A/S actuals

Meter data provision

operation contract execution

meter data management • individual and

billing • in line with contracts

Realisation in two steps:

• registration of market participants: manually

• change of supplier: automated

(competitive market) (service market) customers

request to supply customer 1

ESP old information customer 1

rejection execution of change of supplier

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