ESB Customer Supply prepares for the Single Electricity Market
The introduction of the Single Electricity Market (SEM) in November will result in significant changes for ESB Customer Supply. All wholesale energy must be purchased from the Single Market Operator via a 'pool' and energy purchase risks will be managed via Contracts for Differences (CfDs), which are financial hedges. The volume and complexity of its wholesale energy transactions will increase significantly.
What is ESB Customer Supply
doing?
ESB Customer Supply is currently in
the process of preparing for SEM.
The Customer Supply AIM
Programme has been established to
ensure that ESB Customer Supply is
ready to participate in SEM. The
programme is supporting the
delivery of the necessary business
processes, IT systems, resources,
skills, strategies and policies.
It is a large and complex
programme with more than 70
people involved. This includes
staff from ESB Customer Supply,
ITS, external consultants and
vendors.
The programme comprises a
number of distinct projects two
of which are:
Contract Management &
Settlement Project
The Contract Management &
Settlement Project is delivering
the enhanced systems to ensure
that energy purchase contracts
outside the pool market can be
managed and settled efficiently.
The cross-functional project
team is lead by Andrea Purcell of
IT Consulting.
The scope of the project is to enhance the Contract Settlement System (CSS), which is an existing bespoke ESB application. The system development is being undertaken by a team from ITS, lead by Niall Fahy. The new version of CSS will be ready for SEM 'go live' and should begin settling contracts in early December 2007. It will be used by the Settlements Team within Energy Trading and Regulation.
Modelling & Risk
Measurement Project
The Modelling & Risk
Measurement Project is
delivering a number of
analytical and decision support
modules for ESB Customer
Supply.
The project team is lead by Cormac Bland of IT Consulting. It includes a mix of business and ITS staff with Industry experts from Redpoint Energy. Key components of the project include market and pool price modelling, contract valuation and risk measurement.
These components will help ESB Customer Supply to model the various scenarios which may occur in the new Market and to measure the associated risks.
A number of the tools have already been deployed, with the remaining modules to be delivered for SEM 'go live'. The modules delivered will be used by a number of areas including the Forecasting & Analysis, Risk Management and Financial Control Teams.
