{"id":17973,"date":"2022-09-18T22:09:52","date_gmt":"2022-09-18T22:09:52","guid":{"rendered":"http:\/\/legalblog.ie\/?p=17973"},"modified":"2024-02-08T22:10:15","modified_gmt":"2024-02-08T22:10:15","slug":"esb-reorganised","status":"publish","type":"post","link":"https:\/\/legalblog.ie\/esb-reorganised\/","title":{"rendered":"Electricity Market"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_63 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/legalblog.ie\/esb-reorganised\/#Single_Market_1998\" title=\"Single Market 1998\">Single Market 1998<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/legalblog.ie\/esb-reorganised\/#Grid_Distribution_Codes\" title=\"Grid &amp; Distribution Codes\">Grid &amp; Distribution Codes<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/legalblog.ie\/esb-reorganised\/#ESB\" title=\"ESB\">ESB<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/legalblog.ie\/esb-reorganised\/#Transfer_Powers_ESB_to_Commission\" title=\"Transfer Powers ESB to Commission\">Transfer Powers ESB to Commission<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/legalblog.ie\/esb-reorganised\/#Single_Market_2002-2006\" title=\"Single Market 2002-2006\">Single Market 2002-2006<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/legalblog.ie\/esb-reorganised\/#Eirgrid\" title=\"Eirgrid\">Eirgrid<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/legalblog.ie\/esb-reorganised\/#Transparent_Wholesale_Market\" title=\"Transparent Wholesale Market\">Transparent Wholesale Market<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/legalblog.ie\/esb-reorganised\/#EU_Single_Market_2015\" title=\"EU Single Market 2015\">EU Single Market 2015<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/legalblog.ie\/esb-reorganised\/#EU_Single_Market_2019\" title=\"EU Single Market 2019\">EU Single Market 2019<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/legalblog.ie\/esb-reorganised\/#Integrated_Single_Market\" title=\"Integrated Single Market\">Integrated Single Market<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/legalblog.ie\/esb-reorganised\/#Emergency\" title=\"Emergency\">Emergency<\/a><\/li><\/ul><\/nav><\/div>\n<h3><span class=\"ez-toc-section\" id=\"Single_Market_1998\"><\/span>Single Market 1998<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>European Communities (Internal Market In Electricity) Regulations 1998 gave effect to Directive 96\/92\/EC on the common rules for the internal market in energy. This sought to open up the energy sector progressively to competition.<\/p>\n<p>It modified the statutory monopoly of the Electricity Supply Board. It modified the (1927 Act) legislation governing permits to conform with the directive\u2019s requirements.<\/p>\n<p>Electricity Regulation Act 1999 (Establishment Day) Order 1999 established the Commission for Electricity Regulations (now the Commission for Regulation of Utilities) under the Electricity Regulation Act 1999<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Grid_Distribution_Codes\"><\/span>Grid &amp; Distribution Codes<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The Electricity Supply Board was to prepare a grid code and distribution code for the operation of those systems to be approved by the Commission. They will provide for technical matters regarding connection to and operation of the systems as licensed to authorisation and licence holders.<\/p>\n<p>The ESB must offer to enter an agreement with the licence authorisation holder or an authorised customer (those eligible in the initial phases) regarding connection to and use of these systems. The Commission may give directions in relation to the matters to be provided for in those agreements.<\/p>\n<p>The ESB was required to prepare a statement setting out the basis for the charges for connection for use of the systems. It is also to be available to other prospective entrants to allow them to ascertain the basis on which they might be charged and enter the market and be charged accordingly.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"ESB\"><\/span>ESB<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The Electricity (Supply) (Amendment) Act 1988 facilitated the ESB in participating in joint ventures and other arrangements. Consultation with the Minister was required. It was empowered to sell products and substances and engage in manufacturing. The ESB&#8217;s exemption from rates was removed.<\/p>\n<p>The Electricity Regulation Act 1999 (Public Service Obligations) Order 2002 applied public service obligations on ESB to use and purchase turf renewables sustainable and alternative electricity sources. It provided a levy to compensate for the additional costs of complying with these obligations.<\/p>\n<p>Electricity (Supply) (Amendment) Act 2001 facilitated the prospective privatisation of the Electricity Supply Board.<\/p>\n<p>Electricity (Supply) (Amendment) Act 2004 increased the statutory borrowing limits for the ESB to 6 billion to assist it in undertaking a major investment in infrastructure. The borrowing limit had last been updated\u00a0 and almost trebled the pre-existing permitted maximum.<\/p>\n<p>The arrangements set out in S.I. No. 280 provides that an ESB staff member who transferred to ESB Networks Ltd., who immediately before the transfer, is a member of a superannuation scheme, continues to be a member of that scheme. The arrangements set out in S.I. No. 445 of 2000 also provided that a person whose employment was transferred to Eirgrid plc., who was immediately before the transfer a member of a superannuation scheme, can continue to have their superannuation benefits and the contributions payable in respect of their superannuation scheme membership paid out of or into the ESB fund into which that person was, before the transfer, paying superannuation contributions.<\/p>\n<p>The ESB (Electronic Communications Network) Act 2014 allows ESB to provide the installation and operation of electronic communication networks and services. It may do so by itself or in partnership with other bodies.\u00a0The Act allows ESB to allow other companies to have access to its electricity infrastructure. The electric line definition is broadened to include electronic communications infrastructure attached to the electricity network.<\/p>\n<p>The statutory wayleave powers by the ESB (requiring payment of compensation in most cases) extend to the installation of electronic communications infrastructure along the electricity network. The exercise of these rights is subject to the approval of CER (CRU).<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Transfer_Powers_ESB_to_Commission\"><\/span>Transfer Powers ESB to Commission<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The provisions of the Electricity (Supply) Act 1927 were amended to remove the power of ESB to authorise and permit generation distribution and supply of electricity by other undertakings. The power is vested in the Commission.<\/p>\n<p>Powers to compulsorily acquire land for the purpose of structuring and reconstructing power stations is vested in the Commission which may confer it on the ESB or other authorisation licence holders. Powers relating to the laying and use of electricity cables which lay exclusively with ESB may, with the consent of the Commission, be exercised by holders of plant authorisations.<\/p>\n<p>Regulations made by ESB may be applied to other electricity undertakings and eligible customers. Future regulations made by ESB are subject to the consent of the Commission.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Single_Market_2002-2006\"><\/span>Single Market 2002-2006<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The Electricity Regulation Act 1999 (Eligible Customer) Order 2002 extended the amount of the electricity market open to competition by approximately 40%.<\/p>\n<p>The European Communities (Internal Market in Electricity) (Amendment) Regulations 2002 required ESB to make resources available to the ESB National Grid business unit and Eirgrid until the transfer arrangements under the European Communities (Internal Market in Electricity) Regulations 2000 came into effect.<\/p>\n<p>The European Communities (Internal Market in Electricity) Regulations 2006 set out requirements pursuant to Directive 2003\/54 for common rules for the internal market in electricity. The European Communities (Internal Market in Electricity) Regulations 2009 give further effect to the directive. An authorisation may provide that the licence applicant or the distribution operator arranges for the construction of the connection to a generating station in which event the connection shall be vested in the relevant party.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Eirgrid\"><\/span>Eirgrid<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>EU Directive 2003\/55\/EC and EU Directive 2003\/54\/EC required Member States to make provision for the unbundling of both electricity and gas transmission and distribution system operators. As a result of EU requirements in regard to the unbundling of electricity transmission and distribution businesses from supply businesses, two new companies, EirGrid and ESB Networks, were set up.<\/p>\n<p>EirGrid plc has responsibility for the operation of Ireland\u2019s electricity transmission system operations. ESB Networks Ltd is the licensed operator of the electricity distribution system. Employees of these two companies include staff who transferred their employment from the ESB. Superannuation arrangements for transferees were provided under the European Communities (Internal Market in Electricity) (Electricity Supply Board) Regulations 2008 (S.I. No. 280 of 2008) in the case of ESB Networks Ltd. and the European Communities (Internal Market in Electricity) Regulations, 2000 (S.I. No. 445 of 2000) in the case of Eirgrid.<\/p>\n<p>The Electricity Regulation (Amendment) (EirGrid) Act 2008 provided that EirGrid is the national transmission system operator. It was carved out of the ESB and was empowered to construct and maintain an East-West UK interconnector. The legislation provided for authorisation by CER (CRU) for this purpose.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Transparent_Wholesale_Market\"><\/span>Transparent Wholesale Market<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>REMIT Regulation 1227\/2011 is designed to prevent market abuse in the wholesale markets in energy products. Energy prices are subject to complex factors involving the interaction of supply and demand which is subject to the possibility of manipulation or anti-competitive behaviour.<\/p>\n<p>In the context of the cross-border supply of energy, the Regulation seeks to create transparency and prevent abuse. It applies to wholesale energy products, including<\/p>\n<p>\u2022 contracts for the supply of electricity or natural gas where delivery is in the Union;<br \/>\n\u2022 derivatives relating to electricity or natural gas produced, traded or delivered in the Union;<br \/>\n\u2022 contracts relating to the transportation of electricity or natural gas in the Union;<br \/>\n\u2022 derivatives relating to the transportation of electricity or natural gas in the Union.<br \/>\n\u2022 Contracts for the supply and distribution of electricity or natural gas to final consumers with a capacity of more than 600 GWh per year.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"EU_Single_Market_2015\"><\/span>EU Single Market 2015<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The European Communities (Internal Market in Natural Gas and Electricity) (Amendment) Regulations 2015 restate the rules for the internal market in gas. They provide for funding rules for the gas and electricity transmission systems. They provide for certification procedures to be applied to transmission system operators. They enhance the independence of the CER (CRU after the 2016 Act).<\/p>\n<p>The Energy Act 2016 widens the definition of the single electricity market to facilitate the project that brings the single electricity market into full EU compliance. Compliance with new EU cross-border trading electricity codes, to enable closer integration with European electricity markets, is the responsibility of the Governments of Ireland and Northern Ireland.<\/p>\n<p>The previous rules governing the existing all-island wholesale electricity market, the single electricity market, were not compatible with these new EU trading codes. Therefore, both Governments tasked the SEM committee with developing new market arrangements for the all-island wholesale electricity markets. The new market is called the integrated single electricity market, I-SEM.<\/p>\n<p>The Act increases penalties for breach of the REFIT rules.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"EU_Single_Market_2019\"><\/span>EU Single Market 2019<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Regulation (EU) 2019\/943, the Recast Electricity Market Regulation\u201d and Directive 2019\/944, the \u201cElectricity Directive\u201d, update the EU single market rules. They seek, in particular, to allow electricity to move freely across borders without competitive distortions. They require competitive, flexible, consumer-focused, non-discriminatory markets. There is to be free choice of supplier.<\/p>\n<p>Prices are to be market-based. Third parties are to be allowed access to the market and infrastructure. There are to be transparent regulatory procedures in connection with the public service obligation.<br \/>\nThe regulatory authorities of Ireland and Northern Ireland manage the all-Ireland I-SEM electricity market.<\/p>\n<p>The Single Electricity Market Committee, which makes decisions for the all-island energy market, published a roadmap to Clean Energy Package Implementation requiring setting out actions required to bring the Irish market in conformity with the EU requirements. Action is required in relation to capacity through<br \/>\nremuneration mechanisms<br \/>\nmarket parameters<br \/>\nregional coordination centres<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Integrated_Single_Market\"><\/span>Integrated Single Market<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The Integrated Single Electricity Market (I-SEM) commenced in October 2018. Ireland is linked with the EU states and Great Britain. The market rules apply to 5 separate markets.<\/p>\n<p>The forward markets<br \/>\nThe capacity market<br \/>\nThe balancing market<br \/>\nThe day ahead market<br \/>\nThe intraday market offers three intraday options<\/p>\n<p>The forward market is a financial market only.<\/p>\n<p>I-SEM replaced the single electricity market, which commenced in 2008. All electricity above 10 MW generated imported was to be sold in or purchased from the SEM. Bids for a generation were made daily to form a single island-wide system at a marginal price.<\/p>\n<p>The revised market provides a more sophisticated framework and is linked with other markets through Great Britain. This is facilitated by Ireland&#8217;s participation in the EU internal energy market.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Emergency\"><\/span>Emergency<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>EU Regulation (EU) 2019\/941 provides detailed rules on how transmission system operators and others should cooperate in the event of an emergency in which there is a significant electricity shortage. Risk preparedness measures were required.<\/p>\n<!--themify_builder_content-->\n<div id=\"themify_builder_content-17973\" data-postid=\"17973\" class=\"themify_builder_content themify_builder_content-17973 themify_builder tf_clear\">\n    <\/div>\n<!--\/themify_builder_content-->\n","protected":false},"excerpt":{"rendered":"<p>Single Market 1998 European Communities (Internal Market In Electricity) Regulations 1998 gave effect to Directive 96\/92\/EC on the common rules for the internal market in energy. This sought to open up the energy sector progressively to competition. It modified the statutory monopoly of the Electricity Supply Board. It modified the (1927 Act) legislation governing permits [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[194,195],"tags":[],"_links":{"self":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/17973"}],"collection":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/comments?post=17973"}],"version-history":[{"count":11,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/17973\/revisions"}],"predecessor-version":[{"id":31551,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/17973\/revisions\/31551"}],"wp:attachment":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/media?parent=17973"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/categories?post=17973"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/tags?post=17973"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}