GarPok auctions on UEEX may be of interest to electricity suppliers

05/11 News

“This, of course, should encourage participants to more actively participate on the platforms of direct UEEX contracts, what will determine to a more “healthy” market price formation”, – Energoreforma said.

“Because there have been too many “selected” auctions in recent times, most suppliers are forced to have limited participation in the day-ahead market and the intraday market”, he added.

In addition, Tour noted that the auctions provide for decadal delivery periods, noting that will diversify the purchase of electricity at a fixed price with minimal risk of loss in the case of a sharp drop in prices for DAM and IDM.

“It could also lead to increased interest in GarPok auctions from buyers”, said a spokesperson for Energum.

As reported in Energoreforma, the Cabinet of Ministers allowed SE “Garantovanyi Pokupets” to sell electricity produced from renewable sources under bilateral agreements by a resolution of 28th September No. 887.

The Ministry of Energy expects that the changes it developed will help “GarPok” improve its financial position and improve the level of settlements with electricity producers from RES.

According to the resolution, GarPok offers “green” electricity for sale under bilateral agreements at auctions in the form of special sessions in the following sequence: by the 1st day of each billing month – with the delivery date in the month following the auction, by the 8th day – with the deadline deliveries in the second and third decade of the month in which the auction is held, and by the 18th day – with the delivery date in the third decade of this month.

The starting price of the offer is determined by “GarPok” according to a special formula for each individual product as the arithmetic mean price between the weighted average hourly selling prices of “GarPok” electricity in organized market segments, under bilateral agreements and as imbalances received in the previous month.

In addition, “GarPok” cannot sell electricity below its starting price.

As to UEEX CEO Oleksandr Kovalenko, the starting price for the first auction according to the offered resolution will be slightly lower than the price at which GarPok sells electricity on the market “for the day ahead” and higher than the price of imbalances. At the same time, it is expected that in the bidding process between bidders, it will increase, as each lot will be exhibited at the sale price of the previous one.

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