Nemo Link’s Contractual Framework
Underpinning the trading framework and systems there are a number of contracts and agreements collectively referred to as “Access Rules” and as summarised in the diagram below:
Customers are required to sign the JAO Participation Agreement to participate in long term explicit auctions, and the rules and requirements defining the auction processes are defined in the Harmonised Allocation Rules (HARs). The Border Specific Annex to the HARs identify specific deviations applicable on the GB-Belgium, such as the treatment of transmission losses.
The Shadow Allocation Rules (SARs) only come in to play if the implicit market coupling process breaks down and therefore define the “back-up” process, and the Intraday Allocation Rules define the auction rules for intraday capacity. Those customers wishing to nominate capacity are required to sign a “Nomination Participation Agreement” with Nemo Link to be able to nominate capacity on the RNP system.
The Nomination Rules define the nomination processes and requirements. All the rules are subject to regulatory approval and Nemo Link will periodically review and consult on changes to those rules.
Nemo Link recommends registration as a physical party because of:
- The option to participate in the “back-up” day ahead explicit auctions if implicit auctions fail
- Brexit preparedness where day ahead auctions would permanently become explicit
- The ability to participate in intraday auctions by end 2019