Market Rules

Market Rules are essential for running and managing the electricity market. They are overseen by the Market Operator, under the guidance of the System Operator. With the new Electricity Act of 2023, these rules are being reviewed and updated to fit the new regulatory framework.

Market Rules Overview

Market Rules comprises 10 parts and appendices as depicted in the above diagram

Part 1: Introduction And Objectives

Part 1 comprises 2 sections (sections 1 and 2) which are listed below. Some of the topics discussed in this part are “Establishment of electricity trading system”, “Legislative Authority”, “Application of these Rules”, “ Relationship with the Grid Code and the Operating and Market Procedures”, “Amendments” and “Enforcement”.

Section 1: Introduction
Section 2: Objectives, Contents and Administration

Part 2: Interpretation and Conditions Precedent

Part 2 comprises 5 sections (sections 3 to 7) listed below. A few of the topics considered in the sections are “Definitions”, “Interpretation”, “Operating Procedures”, “Market Procedures”, “ Action to be taken in circumstances not anticipated by these Rules”, “Disagreement between Market Operator and Stakeholder Advisory Panel”, “Resolution of differences”, “Market Stages”, “Transitional Stage”, “Medium Term Market” and “Effectiveness and Conditions Precedent”.

Section 3: Interpretation
Section 4: Operating Procedures and Market Procedures
Section 5: Unforeseen Conditions
Section 6: Market Development
Section 7: Effectiveness And Conditions Precedent

Part 3: The System Operator and The Market Operator

Part 3 contains 6 sections (sections 6 to 13) which are listed below: Some of the topics discussed are “System Operation and Market Administration”, “Compliance with Market Rules and Grid Code”, “ Implementation of the Grid Code”, “Implementation of the Market Rules”, “Role of Operations “, “Working Group”, “Performance Standards”, “Annual Audits”, “Implementation of Audit Report Recommendations”. .

Section 8: General Conditions
Section 9: Role of the System Operator
Section 10: Role of the Market Operator
Section 11: Working Groups
Section 12: Performance
Section 13: Audits

Part 4: Participation: Admission, Withdrawal and Termination

Part 4 has 6 sections (sections 14 to 19) as listed below. A few of the topics explained in this part are “Application for Registration as a Participant”, “Eligibility Requirements”, “Procedure for becoming a Participant”, “Participant’s Ongoing Reporting Obligations”, “Termination of Participation”, “Designation of Connection Points”, “Regional Trading Nodes”, “Rights of Participants”, “Compliance with these Rules” and “Termination and Continuity of Obligations”.

Section 14: Participants Eligibility Requirements
Section 15: Admission
Section 16: Connection Points and Trading Nodes
Section 17: General Rights and Obligations of Participants
Section 18: Compliance
Section 19: Duration of These Rules and Market Participation Agreement

Part 5: Contracts, Generation Adequacy and Power Procurement During the Transitional Stage

There are 3 sections in this part of the Market Rules (sections 20 to 22) which are listed below. Among the topics discussed are “Obligatory Provisions in Contracts”, “Contract Register”, “Vesting Contracts”, “Power Purchase Agreements”, “Generation Adequacy Report”, “Competitive Procurement” and “Bilateral Contracts by Distributors and Discos”. .

Section 20: Contract Market
Section 21: Generation Adequacy
Section 22: New Contracts

Part 6: Submission of Scheduling and Dispatch Data, and Contract Nomination

Part 6 comprises 3 section (section 23 to 25) listed below. A few of the topics explained in the sections are “Submission and Validation of Contract and Dispatch Data”, “Modification to Nomination”, “Standing Nominations”, “Contract Nomination for the Transitional Stage”, “Bilateral Contract”, “Nominations for the Medium Term Market”, “Submission and Validation of Contract Data”, “Contracted Interconnector Capacity Arrangements”, “Confirmation of Access requests”, “Capacity Assignment” and “Interconnector Usage Charge”.

Section 23: Dispatch Data
Section 24: Contract Data
Section 25: Trade Across the Interconnector

Part 7: Settlement and Payment System During the Transitional Stage

This part of the Market Rules consists of 4 sections (section 26 to 29) which are listed below. Topics explained in these sections include “Payments to Generators”, “Market Settlement System”, “Metering System”, “Zonal Transmission Loss Factor”, “Transmission Charges”, “System Operation and Market Administration Budgets”, “System Operation and Market Administration Charges”, “Ancillary Services”, “Preliminary Settlement Statement”, “Complaints on the Final Settlement Statement”, “Billing”, “Payment System” and “Transfer System”.

Section 26: General
Section 27: Market Settlement
Section 28: Settlement Statements
Section 29: Billing and Payment

Part 8: Settlement And Billing During the Medium-Term Market

This is the longest part comprising 11 sections (sections 30 to 40) which are listed below. Some of the topics explained in these sections are “Financial Transaction Conventions”, “Currency”, “Market Clearing Account”, “Market Operator Reserve Account”, “Participant’s Account”, “Settlement Calendar”, “Metering and Metering Responsibilities”, “Collection and Validation of Meter Data”, “Collection of Ancillary Service Data”, “Day-ahead Price”, “System Marginal Price”, “Settlement Amounts”, “Purchasers”, “Reliability Must-Run”, “Transmission Tariff Charges”, “Black Start Capability”, “System Operation and Market Administration Charge”, “Calculation of Daily and Monthly Charges and Payments”, “Additional Charges and Payments”, “VAT”, “Settlement of Charges and Payment”, “ Final Settlement Statements”, “Resolution of Disputes Relating to Preliminary Settlement Statements”, “ Payment Process”, “Application of Funds Received”, “Order of Payments”, “Default Interest”, “Payment of Estimated Statements and Invoices”, “Estimated Statements to be Final” and “Market Intervention and Suspension”.

Section 30: General
Section 31: Settlement Software and Market Operator Accounts
Section 32: Settlement Data Collection and Management
Section 34: Payments and Charges
Section 35: Computation of Charges and Payments
Section 36: Settlement Statements
Section 37: Invoices
Section 38: Payment Procedures
Section 39: Payment Errors
Section 40: Settlement in the Event of Emergency and Market Suspension

Part 9: Communications

Part 9 is the shortest with only section 41 below. Among the topics discussed are “Communications in Respect of the Submission of Nomination”, “Communications in Respect of the Settlement and Billing procedure during the Medium-Term Market” and “Rule Communications”. .

Section 41: Communications

Part 10: Governance, Administration and Enforcement

There 5 sections (sections 42 to 46) in Part 10 as listed below. A few of the topics discussed are “Constitution of Panels and Appointment of Counsellor”, “Dispute Resolution Counsellor and Dispute Resolution Panel”, “Interpretation and General Procedural Provisions”, “Negotiation”, “Mediation/Conciliation”, “Arbitration”, “Audit”, “Amendment Process Generally”, “Rules Report and Grid Code Report”, “Rules Working Group”, “Rule Amendments Initiated by the Stakeholder Advisory Panel”, “Urgent Amendments” “Compliance”, “Procedures Concerning Alleged Breaches of these Rules Payment of Financial Penalties”, “Record Retention”, “Accessibility”, “Open Access to Information and Confidentiality” and “Cost of Access and Electronic Data Sharing”.

Section 42: Panels, Committees and Counsellor – Constitution, Appointment, Powers and Duties
Section 43: Dispute Resolution
Section 44: Amendment of the Rules
Section 45: Enforcement
Section 46: Record Retention, Disclosure, Access and Confidentiality

Appendices

The Appendices contains Appendix 1 to Appendix 4 listed below:

Appendix 1 Conditions Precedent
Appendix 2 Admission Requirements
Appendix 3 Declaration by Nominees
Appendix 4 Format of The Invoice

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