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Enron Mail |
Just a short note. Below, Philip Davies reports on his conversation with the
head of energy balancing at the Polish grid company. While this is only one person's view, it should be an informed view. And that view is that a balancing market, which should lead to trading, should be in place for 1 January 2001. Even discounting for optimism, 1 April does not seem unrealistic. There are still hard issues to be resolved regarding long-term PPAs and stranded costs, but given this informed, and bullish, view on when we might have a "market" in Poland, I wanted to provide you with this status report. We can now see light at the end of the tunnel. mcs ---------------------- Forwarded by Mark Schroeder/LON/ECT on 22/11/2000 15:23 --------------------------- Philip Davies 22/11/2000 14:51 To: Poland cc: Subject: Meeting with Rakowski, PSE Jarek D., Tomasz and myself met yesterday with Jan Rakowski, PSE Director of "System Market Management" (ie, introduction of the balancing and settlement rules) and member of the Gielda Supervisory Board. Highlights: PSE is ready to begin negotiations on a transmission agreement with Enron. We were told to take up the issue with Mr Janiczek - director of Transmission Dept. Rakowski was a bit vague on the nature of the contract (eg, OH or OHT) and timing but let's see how far and how quickly we progress with Janiczek. (Following the entry into force of the interconnection ordinance on 27 October, we do have a right to such an agreement under conditions set out in the ordinance). Rakowski asked us to send an application to be included in PSE's balancing market rollout programme. They will give us a specific code number and include us in test programmes and balancing market implementation developments. Rakowski characterised the Polish market as reaching "the point of no return" as of 1 January. Certain key changes are introduced as of this date, notably: (i) distribution companies will become by definition "active" or "passive" participants in the balancing market. Active will be those that have signed up to the new balancing market rules. Passive will be those that have not, who by default will be charged for their entire consumption at imbalance settlement prices (PSE will not recognise contracts notified by distribution companies that have not signed up to the new rules; a few distcos anyway buy 100% from PSE eg, Slupsk, Czestochowa). (ii) he is saying that hourly balancing & settlement will be introduced (in terms of the necessary IT being put in place), although at the same time hourly data will be for information only at the start. Settlement will remain monthly for some transitional period but not past 1 July. While he claims he recognises the limitations placed on traders (and the market's development) by the ("temporary") "balanced position" requirement on OHs, he offered no real justification besides PSE's desire to "control". General tone was positive, he expressed happiness to meet with supporters of competition (in contrast to distco resistance). But his underlying tone implied -as we knew- that PSE intends the transition to move at a pace deemed reasonable by PSE, rather than being driven by participants insisting on their legal rights or by PSE delivering on its obligations in a timely manner. Thus the need to stay on the case of him and his team as of now. Justyna, Tomasz - let's see if we can find more precise details of the changes to be introduced on 1 January, try http://www.pse.pl/pl/osp/pre/index.html Philip
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