Guideline on Market Access for New Market Participants

Transcription

1 Energy Info BDEW Bundesverband der Energie- und Wasserwirtschaft e.v. Reinhardtstraße Berlin Guideline on Market Access for New Market Participants Berlin, 18 December 2008

2 Contents List of figures Intention Structure of the German electricity market Subjects not viewed more closely Market role model Market roles in the German electricity market Regional structures in the German electricity market Correlation between market roles and regional structures Market roles Definition and responsibilities Regional structures Definition and responsibilities Survey of the most important business processes Survey of essential contracts and agreements between market roles Data formats Identifiers ILN or BDEW code numbers EIC (ETSO Identification Coding Scheme) MeteringCode 2008 version Relevant laws, regulations, specifications, associations guidelines, recommended action...19 Contact person...19 page 2 of 19

3 List of figures Figure 1-1: Scheme of business processes interlocking...4 Figure 2-1: Control areas in Germany in Figure 7-1: Figure 10-1: Figure 11-1: Correlation between market roles and regional structures within a control area...9 Survey Customer-switching and change-of-supplier processes...14 Survey Contracts and agreements between market roles...16 page 3 of 19

4 1 Intention The liberalization of the electricity market gave rise to a large number of new requirements in the energy market. The market participants transactions go beyond the borderlines of physical networks and ultimately also national frontiers within the scope of the European harmonization. A customer may, for instance, freely choose his electricity supplier irrespective of physical energy flows. These requirements contribute to increased competition, but also in particular to a growing need for coordination and information between the market partners so as to finally enable energy quantities and the associated costs, revenues and prices to be correctly allocated to the market actors involved. The essential principle to be followed in view of the well-functioning of processes described in this paper is a comprehensive analysis of the individual sub-processes and their interaction (interlocking of process interfaces). Figure 1-1: Scheme of business processes interlocking The aim of this guideline is to provide a survey of essential legal conditions, important documents and terminology to all new parties dealing with the subject of business processes and page 4 of 19

5 in particular to new actors in the German electricity market. The paper is to support market partners with a view to enabling them to operate in an unobstructed manner in the German electricity market. As a second step, the guideline is to be extended to the gas sector. 2 Structure of the German electricity market The German electricity market is characterized by its great variety. There exist four control areas operated by transmission system operators TSOs - (E.ON Netz GmbH, RWE Transportnetz Strom GmbH, Vattenfall Europe Transmission GmbH, EnBW Transportnetze AG). Approximately 900 distribution system operators (DSOs), 950 suppliers and more than 650 balance responsible parties (BRPs) with about 1350 balancing groups are active in the German electricity market. Figure 2-1: Control areas in Germany in 2008 page 5 of 19

6 According to the results of a BDEW market research study, almost two thirds of all households have taken advantage to date of the possibilities offered by competition in terms of electricity (since 1998) and more than one fifth of all households in terms of gas (since October 2006). These households have either switched to a new supplier or have chosen a new product offered by their present supplier. 3 Subjects not viewed more closely The present paper does not look more closely at the subjects of EEG (Erneuerbare-Energien- Gesetz Renewable Energy Sources Act) handling (unless handling of schedules is involved), concession fees, KWK-G (Cogeneration Act) handling, Section 5 of the Energy Industry Act (EnWG Energiewirtschaftsgesetz), notification of energy supply activities to the Federal Network Agency, data protection, technical provisions under Section 19 EnWG, counting technology, measuring devices (hardware), IT systems and relevant frequently used terms. 4 Market role model The market role model was developed as a common voice with a view to facilitating the consultation and communication between market partners. To this end, market roles / responsibilities (= roles ) and domains were identified which are typically applied within the European internal electricity market. On the basis of standardized definitions, the market role model enables business processes and their IT implementation to be described in a clear-cut manner. This contributes to increased transparency in the development and implementation of information flows. A market partner may assume different market roles. A DSO, for instance, may be a distribution system operator, on the one hand, but also a balance responsible party, on the other hand. Depending on the respective market role, the market partner bears specific responsibilities and performs particular functions. Market roles can also be assumed by different organizational units. Consequently, market roles are separately represented here to provide to each market role the information required for the successful implementation of its (sub-) process. page 6 of 19

7 For more information on Market role model see: 5 Market roles in the German electricity market The following market roles are currently applied in the German electricity market: a) distribution system operator (DSO) b) meter operator (MO) c) meter service provider (MSP) d) transmission system operator (TSO) e) balance coordinator f) supplier g) balance responsible party (BRP) h) ultimate consumer For more information on Definition of the different market roles see Chapter 8 6 Regional structures in the German electricity market The following regional structures are currently applied in the German electricity market: a) control area b) network area c) balancing area d) balancing group page 7 of 19

8 e) metering point For further information Definition of the different areas see Chapter 9 7 Correlation between market roles and regional structures Within the liberalized energy market, a customer may for instance be supplied with electrical energy irrespective of physical energy flows. Therefore, a distinction is made between a physical environment with measuring devices, connections, network areas, etc. and an administrative environment. The administrative environment shows the interplay of market partners ( market roles ), areas ( domains ) and the associated contracts. The following terms are for instance used: metering points, balancing areas, control areas. Electrical energy supply is carried out within balancing groups. In a simplified manner, a balancing group can be imagined as a current account for processing of energy flows instead of money flows. A balancing group consists of at least one feed-in or one withdrawal point. Contrary to that, it is also possible to form balancing groups for transactions not dealing with the supply to ultimate consumers (e.g. trade balancing groups). Electrical energy deliveries between balancing groups are handled on the basis of schedules. To this end, schedules are prepared per balancing group by the balance responsible party. The different market roles are charged with concrete responsibilities and functions. Furthermore, contractual relations exist between the market roles, and there are administrative connections between the different areas. For more information on Schedule management see page 8 of 19

9 Figure 7-1: Correlation between market roles and regional structures within a control area 8 Market roles Definition and responsibilities a) Distribution system operator Distribution system operators are natural or legal persons or legally dependent organizational units of an energy supply utility which perform the function of electricity distribution and are responsible for the operation, maintenance and, where necessary, the development of the distribution system within a specific area and, if applicable, of the interconnections with other networks. The distribution system operator (DSO), usually the local network operator, makes its electricity network available against payment to suppliers for physical deliveries. page 9 of 19

10 b) Meter operator The meter operator is responsible for the installation, operation, and maintenance of measuring devices. c) Meter service provider The meter service provider is responsible for reading of the devices and energy measurements. d) Transmission system operator Transmission system operators are natural or legal persons or legally independent organizational units of an energy supply utility, which are responsible for the operation, maintenance and, where necessary, the development of the transmission system within a specific area and, where applicable, of the interconnections with other networks. e) Balance coordinator The balance coordinator of every control area is responsible for the balancing group accounting and thus for the financial compensation between the balance responsible parties regarding the energy supplied in excess or non-delivered energy. f) Supplier The supplier is an enterprise whose business activity focuses on electricity sales. The supplier delivers energy to customers on the basis of an electricity supply contract (with or without network use) and, where applicable, arranges for the use of the distribution system operator s network to which its customer is connected by means of a supplier framework agreement. g) Balance responsible party The balance responsible party is responsible for the balance between feed-in and withdrawals within its balancing groups in every quarter of an hour. The balance responsible party as interface between network users and transmission system operators, also assumes the economic responsibility for deviations between feed-in and withdrawals of these balancing groups, i.e. that it is responsible for ensuring the balance within its balancing groups both in energy-related and financial terms. h) Ultimate consumers Ultimate consumes are customers purchasing energy for their own consumption. The customer concludes an electricity supply agreement with the supplier. If the customer also owns page 10 of 19

11 the network connection, he is not only the network user (the customer is only leaser making use of the network) but also the connection owner; the owner is responsible for the connection of his premises to the electricity network. In particular major customers may organize their system usage independently of the power supply agreement. They are thus in a position to use several suppliers simultaneously. i) Federal Network Agency The Federal Network Agency for Electricity, Gas, Telecommunications, Post and Railways, or briefly Federal Network Agency (Bundesnetzagentur - BNetzA) is a higher German federal authority (regulatory authority). Its task is to maintain and promote competition in the network markets. The BNetzA grants the basic right to become active in the German electricity market (cf. Section 5 EnWG) and specifies market rules on the basis of legislative and ruleissuing authorization powers (e.g. balancing group agreement, basic conditions for balancing group accounting,...). For more information see Definition of market roles within the legal framework, Annex 1: Survey of the most important laws, regulations, specifications, guidelines and recommended action on the subject of business processes BNetzA: 9 Regional structures Definition and responsibilities a) Control area In the electricity supply sector, a control area constitutes the network area where a transmission system operator is responsible for primary control, secondary control and minutes reserve within the scope of activity of the Union for the Coordination of Transmission of Electricity (UCTE). page 11 of 19

12 b) Network area A network area can be delimited in metering terms by means of measuring devices. It may comprise several voltage levels and is always operated by a DSO. c) Balancing area A balancing area is a virtual entity of one or several network areas within a control area. Normally, the network of a DSO represents exactly one balancing area. A DSO balancing area may also comprise several networks of one DSO (but not of several DSOs!) which can be delimited in metering terms. The balance coordinator, i.e. the transmission system operator, allocates an EIC Code to the DSOs to identify the balancing area, and administrates the DSO balancing area structure of a control area with a view to making network balances plausible. A balancing area is considered an independent entity with regard to balancing of energy quantities. d) Balancing group A balancing group within a control area is the combination of points of feed-in and withdrawal whose purpose is to minimize deviations between feed-in and withdrawals by means of their blending, and facilitate handling of trading transactions. A balancing group consists at least of one point of feed-in or withdrawal. In addition, balancing groups may be formed to serve the only purpose of carrying out trading transactions. It is permissible to assign a balancing group to another one as sub-balancing group. Balancing groups are to be formed by one or several grid users per control area. For each balancing group, a balance responsible party shall be named to the TSO (conclusion of a balancing group contract) by the grid users forming the balancing group. e) Point of feed-in/withdrawal A point of feed-in/withdrawal is the point where energy can be fed in or withdrawn and where all physical measuring devices exist for the recording of energy quantities. A point of feedin/withdrawal is defined by one/several metering point codes which cannot be modified any more and which must not be allocated any more even after termination. f) Metering point (real, virtual) The metering point is the network point where the energy flow is determined by measurement. A metering point is defined by a metering point code which is not modified any more (as long as the metering point exists). There are real and virtual metering point codes. Virtual page 12 of 19

13 metering points comprise in particular measured values and time series generated in IT systems (from physical metering points) Example: A point of withdrawal for major customers (e.g. an industrial customer s site) may have more than one metering point. In this case, a virtual metering point may be formed by the distribution system operator. For more information see Definition of regional structures within the legal framework, Annex 1, Survey of the most important laws, regulations, specifications, guidelines and recommended action on the subject of business processes Data formats and identifiers, Chapters MeteringCode: 10 Survey of the most important business processes Business processes serve to put the operations to be implemented by the respective market rule in concrete terms. They determine the processing deadline, the information contents and the information recipient. In conjunction with standard electronic data formats, they allow the utilization of modern communication media and thus the automation of the resulting data exchange. In essence, a distinction can be made between the following business processes: a) change of supplier (supplier/dso) b) grid usage accounting (DSO/supplier or DSO/ultimate consumer) c) forecast (supplier/balance responsible party - BRP) d) balancing group management (BRP/supplier, BRP/balance coordinator/tso, BRP/BRP) e) balancing of energy quantities by the DSO f) balancing group accounting (balance coordinator/brp) g) invoicing by BRP to supplier page 13 of 19

14 h) invoicing by supplier to customer i) accounting of excess/short energy quantities by the DSO to the supplier The need for core business processes like change of supplier and removals satisfying highvolume business requirements, and the elaboration of business processes for electricity supply to customers give rise to further (sub-)processes: Figure 10-1: Survey Customer-switching and change-of-supplier processes For more information on Geschäftsprozesse zur Kundenbelieferung mit Elektrizität (BK , GPKE), please go to: page 14 of 19

15 11 Survey of essential contracts and agreements between market roles There exist contractual relations between the different market roles, such as a) Balancing group agreement between the TSO (in the role of balance coordinator) and the balance responsible party (BRP) b) Supplier framework agreement between the DSO and the supplier c) Electricity supply contract between the supplier and the customer d) Allocation authorization between the BRP and the supplier e) Data exchange agreement between the DSO and the BRP f) Data exchange agreement between the balance coordinator and the DSO (scheduled) g) Meter operator framework agreement between the DSO and the meter operator h) Data exchange agreement between the DSO and the meter service provider (required in future) i) Contractual arrangements between the meter operator and the meter service provider (required in future) j) Electricity supply contract between the BRP and the supplier k) EDI-framework agreement (agreement about electronic data interchange) between the DSO and the supplier, the balance coordinator and the BRP l) Grid usage agreement page 15 of 19

16 Figure 11-1: Survey Contracts and agreements between market roles 12 Data formats All market partners need basic tools to be able to participate in electronic data interchange and implement business processes. The data formats (for master data and variable data) applied between market partners in the electricity market are based on standardized messages from the consumer goods industry, commonly known as EDIFACT messages (Electronic Data Interchange For Administration, Commerce and Transport). EDIFACT is hosted by a United Nations (UN) committee (UN/CEFACT). UN/CEFACT stands for United Nations Centre for Trade Facilitation and Electronic Business. The aim of CEFACT is to promote, facilitate and harmonize international trade. All EDIFACT messages are based on ISO9735 where the individual syntax units are described in detail. This standard also describes the structure of control segments (e.g. UNH, UNT, etc.) as these are generally applicable to all messages across standards. page 16 of 19

17 For more information, please go to Identifiers In order to be able to identify any market role (such as DSO, supplier, balance responsible party) and the associated objects/areas (e.g. metering point, control area, balancing areas) standardized identifiers are used for data interchange. In addition to the clear-cut identification of the message, the message type and message file date, every electronic message file (e.g. EDIFACT or XML) also comprises a relevant identifier for the clear-cut identification of the sender and the recipient ILN- or BDEW-Code numbers The use of ILN (International Location Number) according to the EAN coding system (commercial articles labelling) has established itself in international electronic business. The utilization of and participation in the coding system depends on the membership in the respective national EAN organisation. Fees are graduated depending on the participating company s sales volume. The EAN organisation in the Federal Republic of Germany is the GS1 Germany GmbH located in Cologne. The ILN allocated by GS 1 Germany must be entered into the BDEW Code number data base. The BDEW code numbers database ensures that the allocated ILN and BDEW code numbers are made known to all market partners active in the German electricity market. Only the identification codes contained in this database may be used by the latter for their identification e.g. as sender or recipient of a message. example: ILN code number, market role DSO: BDEW code number, market role DSO page 17 of 19

18 For more information, please go to EIC (ETSO Identification Coding Scheme) The identification coding scheme is based upon alphanumerical codes (16-digit code) of predetermined length. The codes comprise information about the issuing office and the identified object. Examples: party (EIC-X): 10XDE-VE-TRANSMK (Vattenfall Europe Transmission GmbH, TSO) 11XRWEINTRADAY-O (RWE Supply & Trading GmbH, BRP) domain (EIC-Y): 16-digit code 10YDE-EON (E.ON Netz GmbH, control area). 11YW-ENBW-E-REGK (EnBW Regional AG, balancing area) The application for allocation of an EIC code can be addressed to BDEW or to ETSO. However, account should be taken of the fact that the EIC code for balancing areas is exclusively allocated by the responsible TSO. For more information, please go to (information in English on former VDN site) MeteringCode 2008 version For every metering point, the network operator shall determine a clear-cut, non-temporary, alphanumeric metering point code within its balancing area. The complete metering point code, i.e. all 33 characters, is to be considered a unit. Once allocated, this code must not be page 18 of 19

19 modified any more. This applies as well in the case of later changes concerning the network operator (merger/unbundling) and a change of the postal code. Example: country (2 digits), network operator (6 digits), postal code (5 digits), metering point number (20 digits, alphanumeric) D E A O 6 G 5 6 M 1 1 S N 5 1 G 2 1 M 2 4 S 14 Relevant laws, regulations, specifications, associations guidelines, recommended action Basically, business processes within the German electricity market fit in the regulatory framework of laws, regulations, specifications and supplementary guidelines listed in Annex 1. Disclaimer: The information given in this guideline and the survey of relevant laws, regulations, specifications and complementary guidelines should not be regarded as exhaustive. Contact person Christina Frein phone: christina.frein@bdew.de page 19 of 19