EFET targets TSO cross-border data in wake of Polish price spikes

04 August 2014 18:29 Source:ICIS
ICIS_00148538.jpg

The Polish and German electricity grid operators have been urged by the European Federation of Energy Traders (EFET) to start publishing more data on cross-border redispatching as soon as possible, according to a letter seen by ICIS on Monday.

The letter, dated the same day, was issued to the chairman of Polish grid operator PSE and the markets and operations chief of German counterpart 50Hertz.

“Since the beginning of the year, the electricity prices in Poland have become unpredictable,” it stated.

“Some of our member companies trading in the Polish spot and intra-day markets, as well as those exposed to the balancing market, have come to the conclusion that these price developments cannot be explained on the basis of the fundamental data that is traditionally published,” it said.

The letter continued saying there were indications from market participants that the unpredictable price movements on the Polish electricity market were influenced by cross-border redispatch – a point previously confirmed by PSE.

Redispatch is a last-minute interventionist step taken by transmission system operators (TSOs) to reduce congestion on cross-border electricity cables by directing highly responsive power generation units to increase or decrease production.

It is usually only employed when more established preventative measures have failed to balance supply and demand alongside available capacity. Redispatch is agreed between both grid operators.

ICIS understands the EFET letter was sent because regional traders are still unclear over why electricity designated for redispatch would have such an impact on Polish power prices, even after PSE released a statement explaining the reasons behind recent flows of expensive Polish electricity into Germany, where prices were cheaper at the time ( see EDEM 28 July 2014 ).

Redispatch

On 24 July, Polish grid operator PSE published a statement confirming flows of up to 800MWh of more expensive Polish electricity into Germany and other neighbouring countries on 14 July had been the result of cross-border redispatch.

The statement explained that redispatch “involves bilateral agreement of electricity [flow] in the opposite direction to the natural flow in cases where the natural flow causes a hazard in the work of the network”.

50Hertz is yet to comment on the situation and was unavailable for immediate response on Monday.

On the day in question, between 14:00 and 15:00 Warsaw time, 800MWh of electricity left the Polish system in the direction of Germany, the website of the European Network of Transmission System Operators for electricity (ENTSO-E) showed, with 700MWh flowing the same way during the preceding hour. This was despite Polish prompt prices being more expensive than in Germany.

On the same day PSE figures indicated no cross-border flows in either direction.

Traders told ICIS the flow irregularities where behind high intra-day price spikes in Poland.

‘The urgency of the situation’

PSE does not publish cross-border redispatch data as yet.

The EFET note urged both the PSE and 50Hertz to publish all details on commercial capacity flows between Poland and Germany.

“Considering the urgency of the situation, and with a view to minimizing the consequences of the, thus far, unpredictable price developments in the Polish market, we would like to ask PSE and 50Hz to start publishing this information as soon as possible on their websites in a preliminary mode, e.g. in a simplified form through announcements or short press releases,” the EFET latter said.

Additionally, EFET asked the TSO’s for a one-off publication of historical data for the period between January 1 and the start of regular data publication, which PSE plans from 5 January 2015, to comply with the regulation on wholesale energy markets integrity and transparency or REMIT. Karolina Zagrodna

By Karolina Zagrodna