POLPX is extending its electricity market offer, besides the current Electricity Futures market, it is launching electricity auctions.

The key objective for the implementation of this new segment is to allow acquisition or sale of large volumes of electrical power over longer periods of time (quarter, year). Auctions will also allow generators to comply with the regulatory obligation to sell electricity.

The auction system allows conclusion of transactions on the following types of contracts:

• BASE-A_Q - contract with quarterly execution term, from 90 to 92 days, between 00:00 and 24:00, corresponding to the delivery of 2,159 to 2,209 MWh
• BASE-A_Y       - contract with annual execution term, from 365 to 366 days, between 00:00 and 24:00, corresponding to the delivery of 8760 to 8784 MWh
• PEAK5-A_Q - contract with quarterly execution term, from 61 to 66 days, between 07:00 and 22:00, corresponding to the delivery of 915 to 990 MWh
• PEAK5-A_Y - contract with annual execution term, from 251 to 255 days, between 07:00 and 22:00, corresponding to the delivery of 3,765 to 3,825 MWh

Submission of auction application

The application shall be submitted by the Tender, no later ahtn on 7 working days days before the proposed date of auction.
In the application, the tender shall specify:

• the proposed date of the auction
• type of auction ("sell" or "buy")
• the insutrument being subject of the auction
• number of contracts, the Bidder is planning to sell or buy in the auction (auction volume)
• proposed price limit (minimum price for a "sell" auction or maximum price for the "buy" auction)

The Exchange shall publically announce the opening date of the auction with at least 5 working days notice, specifying:
- Date, type, subject and volume of the auction.

Rules of transaction conclusion and order realization

Transactions are concluded at transactional prices equal to the price limit specified in the auction application submitted by the Auction Participant, in compliance with the following rules:

• Orders with the highest limit for "buy" orders and lowest price limit for "sell" orders are   realized in the first place
• Orders with equal price limits are being realized in a submission order (orders   registered earlier are realized first)

Orders may be realized in part, and each partial realization of the order shall include at least one contract.
After closing of the auction, non-realized orders are being removed.

Electricity auctions - Benefits

• Organized on request of the Members
  
• Possibility to buy large amounts of electrical power, for a longer period of time (quarter, year)
• Generators have the possiblity to comply with the regualtory obligation to sell electrical power
• Increase in transparency of the electrical power market in Poland
• Guarantee of transaction clearing thanks to the collateral guarantees system
• Transparency of operations, thanks to supervision of the Financial Supervisory Commission
• Ease of transaction conclusion thanks to the modern and user-friendly brokerage application - CONDICO Trade™

Electricity auctions on the POLPX market presentation >>download