Ireland Single Electricity Market Regulations S.I. 406/2007 Guide

Key Takeaways

• S.I. No. 406/2007 established the foundational statutory framework for the all-island Single Electricity Market (SEM).
• The regulations designate the Single Electricity Market Trading and Settlement Code.
• They define key terms such as 'generator' and 'Maximum Export Capacity' (MEC).
• The Commission for Energy Regulation acts following consultation with the Northern Ireland Authority for Utility Regulation.

Understanding S.I. No. 406/2007

S.I. No. 406/2007, formally titled the "Electricity Regulation Act 1999 (Single Electricity Market) Regulations 2007", established the statutory framework for the all-island Single Electricity Market (SEM). These regulations were made by the Commission for Energy Regulation. The Commission exercised its powers as conferred by the "Electricity Regulation Act 1999" and the "Electricity Regulation (Amendment) (Single Electricity Market) Act 2007". This framework was developed "following consultation with the Northern Ireland Authority for Utility Regulation".

Key Provisions and Definitions

The regulations define several terms central to the operation of the Single Electricity Market.

Generator and Supplier Definitions

A "generator" is defined as "a person licensed to generate electricity or exempt from the requirement to be licensed to generate electricity". A "generator unit" is further defined as "a unit of a generating station". Similarly, a "supplier" is defined as "a person licensed to supply electricity or exempt from the requirement to be licensed to supply electricity." These definitions apply to licensed entities and those exempt from licensing requirements.

Maximum Export Capacity (MEC)

The regulations define "Maximum Export Capacity" as "the maximum export capacity of a site as defined under the site's connection agreement". This term is crucial for understanding the limits placed on electricity export from a site connected to the grid.

The Single Electricity Market Trading and Settlement Code

S.I. No. 406/2007 designates the "Single Electricity Market Trading and Settlement Code". This code governs trading and settlement processes within the SEM. The regulations enforce this code across licensed generators and suppliers in Ireland.

Transitional Arrangements

The regulations also include provisions for "Transitional Arrangements". These arrangements cover the period leading up to the market's full operation, including the "Determination of the Market Start Date". These provisions ensured a structured transition to the new market framework.