The new market will be called the Single Electricity Market (SEM) and involves combining the two separate wholesale markets North and South into one cross-border market, which is more efficient and cost effective. The SEM is a ground-breaking cross-border project which involved the input and cooperation of all parties in the electricity industry North and South.
The Single Electricity Market is the first cross border market of its kind in Europe. All electricity produced on the island will now be sold into one large “pool”, while supply companies will then buy their power out of this pool. The market is specifically designed to set the cheapest possible price for electricity at all times. No one company will have an undue influence over electricity prices.
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The single wholesale market introduces a new culture of cooperation in the energy field which will benefit all customers. In this regard, the SEM can be considered to be a unique and important development for the energy sector on the island.
What all this means for customers is that competition will be enhanced leading to improved choice across the island and an improved price outlook than would otherwise be possible. The integration of the two markets will also improve electricity security of supply.
Tom Reeves, Chairman of the CER and Iain Osborne, CEO of NIAUR, have both strongly welcomed the implementation of the SEM and have acknowledged the significant effort and co-operation across the industry in achieving this goal. Go-live of the SEM is the culmination of a number of years of cross border cooperation, as both Regulators worked towards the common goal of introducing a market that would benefit customers in all parts of the island. The Regulators have now committed to continuing to work together to ensure the full advantages of the SEM are realised.
Reflecting the joint nature of these new electricity trading arrangements the Commission for Energy Regulation (CER) and the Northern Ireland Authority for Utility Regulation (NIAUR) will refer all SEM Matters to a joint SEM committee for decision. The SEM Committee, established under law in both jurisdictions, has been put in place and comprises members of both Regulatory Authorities as well as an Independent Member and Deputy Independent Member.
Further information on the SEM and Go Live can be obtained from the AIP
ebsite - www.allislandproject.org.
(GK/SP)
