Overview
The Design section includes information on the various design pillars of the SEM, for example the development of the trading and settlement code, the establishment of a strategy to mitigate market power and the results of modeling of the market which are available to all participants.
High Level Design
The RAs finalised the High Level Design of the SEM after an involved consultation process with market participants. The RAs' decision was that the SEM will be a central commitment market with a single clearing price and an explicit capacity payment mechanism. This section contains all relevant papers leading to the decision on the high level design.
Market Power
Participants with Market Power have the ability to discourage competition, to thwart the attainment of the objectives of the SEM, and may reduce or remove market benefits.
The market design in itself (the gross mandatory pool) will reduce the market share of the incumbents and will provide greater transparency and liquidity than the existing bilateral markets. However, the pool alone may not provide sufficient protection against abuses of market power.
The market power section contains information on the further measures that will be implemented by the Regulatory Authorities to prevent market power being abused or distorting the market.
Market Documentation
The Market Documentation Section contains and information on the Change Control process with links to the published technical documents, including the Trading and Settlement Code and Agreed Procedures.
Capacity Payments
The SEM Design Decision included a provision that a Capacity Payment Mechanism would be included to provide a degree of financial security to generators. This section will provide information on the consultation / decision / information papers relating to Capacity Payments. The SEM Design Decision included a provision that a Capacity Payment Mechanism would be included to provide a degree of financial security to generators. This section will provide information on the consultation / decision / information papers relating to Capacity Payments.
SIMDRACS
The SEM Implementation of Metered Data Reading, Aggregation, Communication and Storage (SIMDRACS) project is required to ensure that the relevant wholesale metered data communications are in place to facilitate settlement of the SEM or to identify other workstreams that will handle the relevant communications. Wholesale data communications relate to the data flow from generators to the MO/SO that describe the aspects of the generators’ and consumers’ energy consumption required for financial settlement. This section will contain the relevant SIMDRACS documentation or links to the documentation.