The Continental Market Development Advisory Board encourages APX and Belpex to press ahead with the integration of its Intraday markets in Netherlands and Belgium. The Board also notes the higher impact of Flow-Based Market Coupling on smaller countries and pleads for a fair, intuitive and transparent solution.
Recent efforts made by the European Power Exchanges to select a target system for the interim European Target Model should conclude with an announcement of the selected vendor soon. The APX Market Development Advisory Board (MDAB) views the creation of a single Cross-Border Intraday (XBID) solution to be of high importance. Following the discussion on this topic, the Board has asked APX Group to press ahead with the integration of its Intraday markets in Netherlands and in Belgium with its neighbouring markets.
The Market Development Advisory Board discussed also the recent developments related to the integration of the Day-Ahead markets:
– The Advisory Board welcomes the announced progress on NWE, and requests the parties to maintain the November go-live date;
– It welcomes the planned introduction of more flexible block orders (“smart orders”) and the contribution they will make to efficient price formation.
Following a discussion on the on-going Flow-Based Market Coupling project for CWE, the Market Development Advisory Board reiterates that the proposed CWE Flow-Based solution should be more transparent in terms of modelling assumptions and data published by the project partners. The Board also pleads for clear and synthetic explanations of the methodology, and regrets the incomplete simulation data being currently available.
Furthermore, the Board notes the particular position of smaller bidding areas in the Flow-Based mechanism and the perceived impact in terms of reduced predictability of auction price, leading to a negative effect on the exchange’s liquidity (in contradiction to the project’s objective). The Board also looks to the regulators and involved parties to ensure a fair intuitive Flow-Based solution is implemented.
The Market Development Advisory Board is a formal body of APX Group that aims to advise the Executive Board of the Company on topics related to Market and Product Development. APX Group has set up two Advisory Boards in charge of the Continental markets and GB markets operated by the Group. The members of the board are representative of the members active in the related markets. TSOs of the Belgian and Dutch markets are also permanent members of the Board. The first Market Development Advisory Board for continental markets was organised in Amsterdam on 20 June. Mr Lucien Wiegers, Director Trading at Eneco has been appointed as permanent chair of this Board.