Bosnia and Herzegovina (BiH) Regulatory and Energy Assistance Project (REAP) EXPLICIT AUCTION PROCEDURE-STEPS TO BE UNDERTAKEN FROM THE BEGINNING TO THE END OF THE PROCESS

as USAID Contractor. The project focuses on the explicit auction procedure for the allocation of cross-border transmission capacities in the power sector. The starting point for the auction procedure is the calculation of Net Transmission Capacity (NTC) and Available Transmission Capacity (ATC). The calculation of NTC and ATC requires a professional software package that calculates load flow for different scenarios, including different security of supply options. The Auction Administrator collects inputs from all participants in the power sector, including generation, demand, planned outages of Power Plants, and planned and unplanned outages in the transmission network. The results are then exchanged with neighboring Transmission System Operators (TSOs) who have also made the same calculations. This methodology is used to determine yearly and monthly NTC and ATC, as well as for regular checking and adjustment on a daily basis. The auctioning party announces the auction by publication on its website, including identification of interconnection, quantity of capacity available in MW, product type, product code, and time of auction. Qualified participants must submit a statement of acceptance, possess a License for International Trade issued by the State Electricity Regulatory Commission, and execute a grid access contract with an EIC Code. The auction process is performed electronically through modules for the allocation of cross-border transmission capacities within the ESS platform, where participants submit their bids for interconnect capacity electronically. The bids must contain identification number of the participant, auction code, requested whole number amount of PKPK in MW, and bid price without VAT, expressed in KM/MW on two decimal places. The Auction IT system ranks the bid list from the highest to the lowest bids. If the amount of ATC for a specified quantity is higher than or equal to the sum of the requested capacities for all participants, PKPK shall be allocated to all participants according to the requests from their bids, and the price of the allocated PKPK shall be 0,00 KM/MW. If the ATC for a specific product is less than the request by the participant(s), capacity shall be allocated according to the distributed List of bids for the specific product. The auction results are notified to participants by the ESS auction system, and the SERC and XXX are notified of the auction results by the Auction Administrator. The results are also published on the website. The settlement and payment process involves calculation of charges, issuance of invoice, invoice disputes, time for payment, late payment, interest on arrears, and set-off. The secondary market involves notification of transfer to ISO and Transco, and the original party remains liable for capacity price. The resale of awarded capacity involves use-it-or-lose-it, and if awarded capacity is not nominated by the deadline for nomination of the daily schedules, it shall be lost and may be resold within the intra-day allocation.