Start date for the Integrated Single Electricity Market delayed until 1 October 2018April 18, 2018
The SEM Committee (the “SEMC”), the decision-making body which governs the Single Electricity Market (the “SEM”), has announced that the date for the implementation of the SEM has been delayed until 1 October 2018 due to IT issues.
The SEM is the wholesale electricity market for the island of Ireland which is jointly regulated by the Utility Regulator for Northern Ireland and the Commission for Energy Regulation in the Republic of Ireland (the “Regulatory Authorities”). It is undergoing significant change with EU legislation driving the integration of energy markets across Europe with the aim of creating a fully liberalised European electricity market. The SEMC has been tasked with developing and delivering a new wholesale market on the island of Ireland.
The new wholesale market will be known as the Integrated Single Electricity Market (the “I-SEM”) and was originally to have been in place by the end of 2017. The I-SEM is designed to deliver increased levels of competition which, it is hoped, will help put downward pressure on prices as well as encouraging greater levels of security of supply and transparency.
The SEMC, Regulatory Authorities and the Transmission System Operators (the “TSOs”) had been liaising with market participants in order to address residual IT system issues and assess whether a revision of the scheduled go-live date would be necessary. The feedback received was that an extension would be required and the SEMC announced the decision to delay the start date on 17 April 2018.
Despite the change in the start date the SEMC have confirmed that the timetable for future capacity auctions remains unchanged.
This article has been produced for general information purposes and further advice should be sought from a professional advisor. Please contact our Energy Team at Cleaver Fulton Rankin for further advice or information.
Peter Moorhead, Senior Solicitor, Energy Team, Cleaver Fulton Rankin, Solicitors.