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  • Ukrenergo launched new auction platform for cross-border capacity allocation

    NPC Ukrenergo has launched a new electronic auction platform (EAP) for the allocation of cross-border capacity. The software for the platform was developed by the company’s subsidiary, Ukrenergo Digital Solutions LLC.

    The new platform was created to implement the Auction rules in accordance with the Resolution of the NEURC dated 03.04.2020, № 763 “On approval of curtailment management rules and the procedure for allocation of cross-border capacity” (hereinafter – the Rules and Procedure) adopted within the framework of the implementation in the legislation of Ukraine of the provisions of Regulation (EC) 714/2009 on conditions for access to the network for cross-border exchanges in electricity.

    The new auction platform is easier to use due to the fact that now users have access to the system from any device or browser without the need to install additional software.

    The first monthly auction for October 2021 was held on September 20-22. The first daily auction will take place on September 29.

    The improved auction algorithms and the new auction platform provide equal opportunities for access to cross-border capacity for all market participants, and the transparent curtailment management procedure brings us closer to European standards.

    In particular, the EAP implements the functions provided for in the new Rules and Procedure:

    • a new method of determining the allocation structure: 35% of the available cross-border capacity at a relevant interconnection is offered at yearly and monthly auctions, and 30%– at daily auctions;
    • a new principle of reduction, if necessary, of the physical transmission right (PTR) for its holders. The previous Rules stipulated that first the PTRs purchased at daily auctions are limited, then – at monthly auctions, and finally – at yearly auctions. Under the new Rules, restrictions apply to all PTRs on a pro rata basis, regardless of the auction at which they are purchased;
    • control over the fulfillment of the condition on non-allocation of the physical transmission right to several interconnected (affiliated) companies in the amount of more than 50% of the offered capacity;
    • possibility of using long-term transmission rights (LTTRs) on the principle of “use-it-or-sell-it” (UIOSI) for resale at daily auctions by holders of yearly and monthly unused ones;
    • page for notifications of readiness to transfer (sell) or accept (buy) PTRs;
    • checking the amount of financial security required for participation in auctions. In particular, the amount of this security (credit limit) has been changed, which is now determined in accordance with the amount and price proposals specified by the bidder in the bid for participation in the auction. There is also an opportunity to increase the credit limit;
    • automatic verification of user status for participation in auctions;
    • calculation of payment for actually provided services, penalties for late payment, as well as fines for the less than 80% use of daily PTRs , etc.

    The new auction platform also provides technical capabilities for data exchange with related automated systems:

    • MMS to obtain market participant status, nomination of LTTRs for the formation of daily auction details and calculation of compensation for non-nominated PTRs;
    • JSC Oschadbank automated system, which allows participants to see the balance on the ESCROW accounts to control the financial security, as well as direct payment for the services actually provided;
    • ERP (Enterprise Resource Planning System) for automated formation of acts for provided services, non-nomination and return, as well as control of actual payment for provided services.


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