The Section Council for the Direction "Electricity" considered initiatives to optimize electronic auctions

On February 12, a meeting of the Council of the section of the Ukrainian Energy Exchange LLC (UEEX) in the "Electricity" direction was held. The meeting was attended by representatives of leading participants in the electricity market, including JSC “NNNGC ‘Energoatom’, LLC ”D.TRADING“, LLC ”TOLK UKRAINE", Ukrhydroenergo PJSC, MHP ECO ENERGY PrJSC, Energy Union, manufacturing companies, traders, and electricity suppliers for a professional discussion of proposals to optimize the process of conducting electronic auctions.

The meeting considered proposals on the following issues:

• reducing the waiting time for the best offer during the auction from 1 (one) minute to 30 (thirty) seconds;
• increase in the auction step to 5 (five) hryvnias per 1 MWh;
• increasing the size of one lot (an indivisible volume of electricity offered for sale at an auction) to 5 MWh;
• changes in the end time of the main/additional trading periods (including taking into account their extension) - no later than 7:00 p.m. on the day the auction is held;
• reduction of the extension time, in automatic mode, of trading periods (main and additional) from 5 (five) minutes to 3 (three) minutes.

Victoria Dudchenko, Head of the Legal Department of UEEX, presented the results of a survey of active market participants, which showed the presence of different positions on individual proposed changes, and also emphasizes the importance of further discussion at the level of the Section Council and the Auction Committee.

In particular, a significant part of the participants supported the initiative to reduce the waiting time for the best offer to 30 seconds, change the end time of the main/additional bidding periods to 19:00 on the day the auction is held, and reduce the extension time of bidding periods from 5 minutes to 3 minutes, arguing this with the need to increase the efficiency and effectiveness of bidding.

At the same time, the issue of increasing the lot size and auction step caused an ambiguous reaction from the members of the Section Council, and therefore requires additional analysis, taking into account the positions of all participants in electronic auctions.

During the discussion, members of the Section Council emphasized the importance of maintaining a balance between the efficiency of bidding and ensuring equal and non-discriminatory conditions for participation for all auction participants.

Based on the results of the meeting, the developed proposals and generalized positions will be prepared for further consideration by the Auction Committee.

Special attention was paid to the issue of using the “price fuse” functionality of the electronic trading system as a useful practical tool to minimize the risks of technical errors and reduce the number of controversial situations during auctions.

The Ukrainian Energy Exchange will continue to ensure transparent dialogue with market participants and consistent improvement of processes to increase the efficiency of the organized electricity market in Ukraine.