The EAEU countries agreed on a number of issues of the functioning of the common electric power market of the EAEU

At a meeting of the Advisory Committee on Electricity, chaired by the Minister for Energy and Infrastructure of the Eurasian Economic Commission Temirbek Asanbekov, representatives of the states of the Eurasian Economic Union developed a common understanding of the commercial accounting of electricity in the EAEU common electricity market (CEM).

Unlike national markets, where electricity is accounted for at the points of its direct production and consumption, in the common market, the amount of received (transferred) electricity will be measured on interstate power lines and serve as the basis for determining the actual values ​​of the balance of electricity flows between neighboring Member States.

Such an understanding of accounting also made it possible to agree that deviations of the actual hourly production and consumption volumes of the domestic wholesale electricity markets entities from the planned values, including taking into account transactions in the EAEU CEM, are subjected to compensation by these entities in the domestic wholesale electricity market in accordance with the legislation of the state -member.

The parties agreed on the possibility of using different financial settlement systems for different types of centralized electricity trading in the EAEU CEM and at different stages of its development.

The event participants agreed on a condition under which an organization authorized for non-trade interstate transmission of electricity has the right to refuse to conclude an agreement.

The members of the advisory committee on the electric power industry instructed the experts of the subcommittee on the formation of the EAEU CEM to work out in more detail the issues of registering free bilateral contracts, as well as determining and settling deviations of the actual balance of electricity flows from the planned values ​​for the EAEU CEM.

The need to resolve these issues arose in connection with the development of draft rules for mutual electrical energy trade in the common electrical energy market of the Eurasian Economic Union and rules for access to services for interstate transmission of electrical energy (capacity).

These documents, along with the rules for determining and distributing the capacity of interstate sections and the rules for information exchange on the common electric power market of the EAEU, will regulate its functioning.

The rules must be approved by the Eurasian Intergovernmental Council in 2022 and 2023, and enter into force no later than January 1, 2025. The CEM of the EAEU will begin to function  from the moment these four documents come into force.

Reference

On the common electricity market of the EAEU, trade participants will be able to find their partners from the countries of the Eurasian "five" and conclude contracts for the sale of electricity in various ways.

Thus, the possibility of concluding free bilateral agreements is envisaged. This method involves an independent search for a counterparty and the definition of delivery conditions with him (price, volume, schedule)

At the same time, it is planned to organize centralized (electronic) trading under fixed-term contracts and for the day ahead on the basis of exchange mechanisms.

Trading under futures contracts on the EAEU CEM is an organized trading under contracts for a certain period (year, quarter, month, week) and at certain delivery hours. It is assumed that the price and volume of electricity in such contracts will be determined by conducting a double counter anonymous auction.

Day-ahead trading is an organized trade in hourly volumes of electric energy, the supply of which is carried out on the day following the trading day. With this mechanism, a different type of auction is used (sometimes called a "volley"), in which for each hour of the next day, ranked bids for the purchase and sale of electricity are compared and its equilibrium price and volume are determined.

Non-trade interstate transmission of electricity is an interstate transmission (transit) not related to the trade of electricity in the EAEU CEM.