Bilateral contracts for electricity – one of the important activities of CE UEEX. The procedure of the purchase and sale of electricity under bilateral contracts and what is important to know for new market participants in Ukraine - further in our material.
The mechanism of functioning of the market of bilateral contracts for electricity
The market of bilateral contracts is a process of buying and selling electricity under bilateral contracts. Mostly they are long-term. In this market electricity producers can enter into contracts with energy suppliers, agreeing on the price, delivery time and volume of electricity. Auctions on the market of bilateral contracts provide for the purchase and sale of electricity in any amount - except for the amount that is subject to mandatory sale on the Day- ahead market, as well as electricity to be sold in the framework of special obligations ( PSO).
The first auctions for the sale of electricity under bilateral contracts were held on June 27, 2019 at the Ukrainian Energy Exchange (UEEX). This became a necessary condition for the launch of a new market model from July 1. Today the Ukrainian Energy Exchange is the only one organizer of auctions in the market of bilateral contracts. The exchange received this right through competitive selection - UEEX was appointed as the organizer of the auctions and due to the best preparation, professionals and modern technical equipment.
The Ukrainian Energy Exchange has been constantly holding auctions on the market of bilateral contracts since June 27, 2019. During this time more than 60 million MWh of electricity was sold. Currently there are more than 200 participants in the exchange and their number is constantly increasing. This is an indicator of a fairly high level of competition on the market. To be able to participate in electronic auctions on the market of bilateral contracts, the participant must go through the registration procedure.
Stages of participation in auctions on the market of bilateral contracts
In order to participate in trading sessions you must register an application. The bid registration period starts from the moment of creating a trading session and ends no later than two hours before the auction.
The next stage is direct participation in the bidding. It starts from the time published on the website of the organizer of the auction - ueex.com.ua. The bidding phase ends after the sale of the lots put up for auction (but not later than the time specified in the terms of the trading session). The trading session may be extended if trading in certain positions is still ongoing.
At the end of the bidding period, certificates are signed. Signing of auction certificates is carried out by electronic signature.
To conduct auctions on the market of bilateral contracts, the Ukrainian Energy Exchange uses its own software product - electronic trading system (PP BETS) in the "Electric power" version.
Training of market participants of bilateral contracts for electricity
An organization wishing to participate in auctions and trade in electricity must be trained and familiar with the rules of organization and conducting of the auction.
Training on the market of bilateral contracts for electricity is conducted by specialists of the Ukrainian Energy Exchange for all comers. It is free and takes place at the request of a new participant. The training course includes theoretical and practical classes on working in the software product "Exchange electronic trading system" (PP BETS) in the version of "Electric power". During the theoretical classes the participant has an opportunity to try imitation bidding. For more information, look through the "Learning Center" section.
For up-to-date data on the market of bilateral contracts for electricity, training for new participants and scheduled auctions, call a consultant - (044) 35-35-735. Sign up to the regular newsletter and Telegram-bot of the Ukrainian Energy Exchange - stay up to date 24/7!