The Day-Ahead Market (DAM) is a component of the wholesale electricity market that allows firm electricity trading with delivery on the very next day after the trading day.
As of 19th November 2014, Romanian DAM is functioning in coupling mode with day-ahead markets from Czech Republic, Slovakia and Hungary through price coupling mechanism, project known as 4M MC. DAM rules are provided by „Regulation of organization and functioning of the Day-Ahead Market respecting the price coupling markets mechanism”, approved by ANRE President’s Order no.82/2014, with subsequent amendments and supplements.
The DAM rules establish a centralized market framework for buying and selling of electricity by market participants, necessary:
DAM provides market participants a functional tool to achieve balance between portfolio of bilateral contracts, consumption forecast and availability of generation units at hourly level for the delivery day. The surplus or deficit of electricity can be balanced through electricity selling or purchasing on DAM.
Participation on DAM is voluntary and is available to all operators within the meaning of Article 2 of Regulation (EU) 943/2019 which enter this market and comply with the Participation Agreement relating to this trading method, as well as the applicable regulations. One of the mandatory conditions that the applicant must meet in order to register at the DAM is to prove that he has concluded with the TSO the Balancing Responsibility Agreement or that he has transferred the balancing responsibility to another Balancing Responsible Party.
Firm electricity trades are concluded every day for each hourly interval within the next delivery day based on offers submitted by DAM participants. Offers can be submitted in the trading system according to the trading schedule pre-established in CET and only if the price scale is available, respectively the exchange rate is established by the Romanian National Bank (RNB) for relevant trading day.
The exchange rate is established every banking weekday. In case the day before the trading day is nonworking day, respectively is Saturday, Sunday, public holiday, or other special day when RNB does not establish the exchange rate, the exchange rate applicable for the trading day is that established during the latest banking day before the relevant trading day and is published on the day of establishment. The DAM operator uploads the exchange rate in the trading system in the day of its establishment for all delivery day for it is applicable. Attached is the calendar for 2021 with delivery days for which the exchange rate is set in advance.
Features of the offers for DAM:
a) Offers for single hourly intervals, identified as hourly offers;
b) Offers for more consecutive hourly intervals, interlinked, identified as block offers.
The DAM trading system validate/invalidate offers submitted by the participants according to criteria provided in the “Operational procedure for establishing the format, the content, the ways of submission and validation the DAM offers”.
In normal situation of functioning in coupling mode, trades on DAM are concluding by matching buy and sell offers through auction mechanism established according to price coupling markets of regions mechanism (PCR mechanism), after performance of offering, validation, and aggregation of offers steps, market coupling running process and portfolio allocation of the coupling results according to participants offers.
OPCOM S.A. is counterparty for all buying/selling trades concluded on DAM. DAM participants have access to information regarding their own trades by accession the DAM trading system.
Based on trades’ confirmation for one delivery day, OPCOM S.A. establishes physical notifications related to concluded trades, with granularity of 15 minutes, and send them to Transmission System Operator (TSO) and make them available to BRPs that assumes balancing responsibility for DAM participants.
The DAM trading schedule during a normal day is (in CET):
|06:00||Opening the trading system|
|09:30||Available Transmission Capacity (ATC) publishing|
|11:00||Gate Closure Time|
|11:40||Trade confirmation publishing|
|12:10||Physical notification creation|
|19:00||Closing the trading system|
In case of deviation from normal regime for market coupling, relevant DAM operational procedures are applied.
OPCOM agreed with EEX and PXE the right to use ROPEX_DAM indices for registration of trades for derivative financial contracts Romanian Power base Future, respectively for trading the Commodity futures with financial settlement for hedging against DAM price volatility risk.