The Integrated Single Electricity Market (I-SEM) is a new Europe-wide energy market that will replace the current Single Electricity Market (SEM) on the 1st of October 2018.
Reasons for changing on the 1st of October 2018
The EU is bringing in new legislation designed to harmonise cross-border trading arrangements and create a more active and dynamic energy marketplace across Europe.
- To create an integrated EU energy market with efficient wholesale prices for electricity.
- To improve efficiencies by moving to an auction based capacity market.
- To deliver a secure sustainable electricity system and meet renewables obligations of 40% by 2020.
How is the Energy Market Structure Changing:
I-SEM will lead to the introduction of three new energy markets – Day-Ahead, Intraday and Balancing. However, the ultimate energy price you pay will still be dictated by the price of gas, carbon and FX commodities.
How will the capacity market changes impact your business?
The supplier capacity charges on your bill will change to reflect the new I-SEM market
|Before 1st of October 2018
||After 1st of October 2018
|Supplier capacity is charged every half hour of the day.
||Supplier Capacity will only be charged between 7am and 11pm.
|The Supplier Capacity rate varies every half hour.
||The supplier capacity rate will be fixed until September 2019 and will not vary every half hour.
What will I-SEM mean for your business?
Customers should see energy prices fall due to a more competitive capacity auction process and freer flow of electricity.
As the market leading electricity provider, we can optimise our portfolio to ensure that we won’t pass on any imbalance charges to our customers. In order to facilitate this safety net against imbalance charges, greater communication will be required with your customer relationship manager about any changes to your normal business energy consumption such as plant outages or maintenance shutdown.