The Electricity Market has developed significantly since 2005. The development has lead to opportunities in both the wholesale and retail markets. Opportunities within the market have at times necessitated Participants to operate different models within the wholesale and retail markets. If the objective of encouraging competition and developing an innovative and responsive Electricity Market in Ireland are to be met, there is a need to regularly look at whether the Market Structures are fit for purpose and are aiding rather than inhibiting advancement.
Currently there are 3 categories of Suppliers within the Irish Electricity Retail Market.
These are Self Supplier, Small Supplier and Large Supplier.
Over the last 18 months we have observed a particular type of Participant wishing to qualify but not fitting effectively within the existing structures. The Participant’s business model is characterised as:
Having more than 1 deminimus / non participant sites which they want to register for export only.
Wish to have financial control over export payments from SEMO rather than receive payments as a generator via a bi-lateral agreement with a supplier who will pay them for their export. The mechanism for achieving the previous statement is by registering a supply unit in the retail market. Export sites (generators)are then registered against that settlement unit. The Supplier Unit is then paid by SEMO for all the export values.
Do not intend supplying customers on more than 1 of their export sites. That is, they could self supply as well as generate export for one site within the Self Supplier structure.
The proposal is to create a new type of Market Entrant Category within the Retail Market, this supplier category would be termed “Export Only Supplier”.