Technological support for the operation of wholesale markets. Wholesale electricity market Wholesale electricity and capacity market

The electricity and capacity market of the Russian Federation is divided into two parts: wholesale (WECM) and retail (RREM).

Wholesale market- This is the place where all electricity in Russia is sold. It contains large generating stations and electricity consumers.

Why enter the wholesale market?

Advantages

Reduce energy costs. When purchasing electricity on the wholesale market, the sales premium of the guaranteeing supplier is not paid;
Get the freedom to choose an energy sales company. The company can choose its electricity supplier;
Entering the wholesale market is a long-term investment. Enterprises operating on the wholesale electricity market have been saving on electricity for more than 13 years.

Flaws

To work in the wholesale electricity market, high payment discipline is required. If payments are delayed, the enterprise is deprived of its status as a wholesale market entity;
The project to enter the wholesale electricity market takes up to 12 months.

Online calculator of the economic effect of entering the wholesale electricity market

Fill out the contact form and the calculation form data will be attached to the application.

How to enter the wholesale electricity and capacity market?

Entering the wholesale electricity market is a long-term project. It takes about one calendar year.

To enter the wholesale market, the client or the energy sales company he has chosen must:

Agree with the Administrator of the trading system of the wholesale electricity market on the group of delivery points at which the purchase of electrical energy will be made;
Build an automated information and measurement system for commercial electricity metering that meets the requirements of the wholesale electricity market. The enterprise is building a modern electricity metering system, installing a server with specialized software and setting up communication channels with the trading system administrator. The system is being built so that the regulator receives information in real time about the volume of electricity consumption at the enterprise;
Conclude an agreement for the provision of electricity transmission services with a network organization;
Obtain access to the trading system from the market council.

Entry to the wholesale market is most often made from a new regulatory period (from January 1 of the new year). If you exit within the regulation period, you will have to pay the guarantee supplier the shortfall in income that was taken into account in the tariff.

Requirements for entering the WECM

Can enter the wholesale market a consumer who owns, by right of ownership or other legal basis, energy-receiving equipment, the total connected power of which is equal to or exceeds 20 mVA and in each group of delivery points is at least 750 kVA.

There are two options for purchasing on the wholesale electricity market:

On one's own

The enterprise itself goes out and buys electricity on the wholesale market.

Technical requirements:

construction AIIS KUE;
750 kVA;
connected power of all supply points is not less than 20,000 kVA.

Comparison of independent entry into the wholesale electricity market and entry into the wholesale electricity market through an energy sales company:

	On one's own
Connected power requirements	The connected power of each supply point is not less than 750 kVA. Connected power of all supply points is not less than 20,000 kVA	The connected power of each supply point is not less than 750 kVA
Requirements for the construction of AIIS KUE wholesale market	It is necessary to build all levels of the system	Only a low-level system can be built, and the server of the energy supply company can be used
Procedure for entering the wholesale market	The enterprise needs to hire or train employees who will bring the enterprise to the wholesale market	The process of bringing the enterprise to the wholesale electricity market will be handled by employees of the energy sales company
Payment of membership fees to the association NP "Market Council"	Quarterly payment in the amount RUB 300,000	No need to pay. The costs are borne by the energy sales company
Economic effect of entering the wholesale market	The enterprise receives the entire economic benefit from entering the wholesale electricity market	The energy sales company takes part of the economic effect as a reward for services
Risks of reduced economic effect	Fully borne by the enterprise	Can be assumed by the energy sales company as part of the energy supply agreement

Structure of the wholesale electricity and capacity market

WECM rules operate in regions united in so-called price zones. There are two of them on the territory of the Russian Federation: the first price zone includes the European part of Russia and the Urals, the second is Siberia.

Non-price zones have also been identified, where electricity is sold at approved tariffs. Such rules apply in the Far East, in the Arkhangelsk and Kaliningrad regions, and the Komi Republic.

The participants of the Wholesale Electric Power Market are electricity producers, operators, energy supply organizations, and grid companies. To work on the Wholesale Electric Energy Market, you must have the status of a market participant. To do this, the organization must meet certain requirements that are approved by the Wholesale Electric Market Rules (RF Government Decree No. 1172 of December 27, 2010) and are reflected in the agreement on joining the wholesale market trading system.

Currently, work on the Wholesale Electric Energy Market is divided into sectors, each of which has its own conditions for concluding transactions and delivery times:

free contract sector
regulated contracts sector,
day ahead market,
balancing market.

Regulated Contracts Sector (RC)

Electricity trade in this sector is carried out on the basis of the conclusion of regulated agreements (RA). In this case, tariffs for the sale/purchase of electricity from the wholesale market are set by the FTS of Russia. Suppliers and buyers are selected by the Trading System Administrator (ATS OJSC).

Since 2011, the sector operates only in relation to the supply of electricity and power to the population, equated consumer groups and guaranteeing suppliers operating in the republics of the North Caucasus and the Republic of Tyva.

At the same time, suppliers have the right to sell no more than 35% of the planned volume of production and supply of electricity and capacity under the terms of regulated contracts. The remaining volumes of electricity are sold in other market sectors.

Sector of free bilateral treaties (FBT)

As part of the work in this sector, market participants enter into free contracts, with all indicators such as The volume of electrical energy sold, the supply price, and contractors for work are selected by the participants independently.

Day Ahead Market (DAM)

The market is based on the organization of competitive selection of price bids from suppliers and buyers. The selection is organized by the commercial operator OJSC ATS one day before the actual supply of electricity. The price and volume of delivery are determined for each hour of the day. When pricing on the DAM, the marginal method is used, the principle of which is to select an equilibrium price (balance of supply and demand). At RVS, applications with the lowest price are satisfied first. The price of the RVS is determined for each node of the price zones; there are about 8000 such nodes. Information about indices and trading volumes on the day-ahead market is published daily on the website of ATS OJSC.

Balancing market (BM)

The sector in which trade occurs in deviations of the actual production schedule from the planned one. Prices are formed using the marginal principle through competitive selection (every 3 hours until the hour of actual delivery) of applications from participants in this sector (suppliers, consumers with regulated load).

Entering the wholesale electricity and power market and working on it can be one of the measures to reduce electricity costs. There are two options for working wholesale: independently, which is usually beneficial only for large industrial enterprises, or through an energy sales company.

By working independently, the enterprise saves on paying the energy sales company, but at the same time incurs additional costs for membership in the NP “Market Council” and for the maintenance of personnel purchasing electricity on the wholesale market. Also, all risks associated with working in the wholesale market fall on the enterprise itself.

For medium-sized enterprises (total connected power less than 20 MVA, but more than 750 kVA), working on the wholesale electricity market through an energy sales company may be optimal. First, it is necessary to assess the likely economic effect of bringing the enterprise to the Wholesale Electric Power Market; for this purpose, an analysis of the volume of consumption, the current consumption regime, working conditions with a guaranteeing supplier in the region and other parameters are carried out.

In order to correctly assess all the risks and opportunities, we offer you to conduct a free calculation of the economic feasibility of entering the wholesale electricity market. Leave your contact information, we will call you back and advise you.

In 2003, the wholesale electricity market system underwent significant changes. The reason for this was the adoption of the relevant law, according to which a reform of this industry was carried out in the state. The main goal of the changes was to replace many small companies providing a variety of services - from production to sales - with three large ones. They, in turn, must specialize in only one area:

production;
transportation;
sales

Thanks to this, a unified network emerged, which included the nuclear concern Rosenergoatom, which is important for the country. This reform made it possible to bring the energy industry to a fundamentally new level and make it one of the leading ones in the Russian economy.

Specifics of electricity as a product

The wholesale electricity market trades a very important resource. And since this product has quite specific features, certain points must be taken into account when regulating the market. The main distinguishing feature of electricity as a product is that all stages of movement must occur one by one and without delay. Energy cannot be stored and accumulated. This type of product must immediately reach the end consumer immediately after production.

Manufacturer control is possible only in terms of supply volumes. But for people it is absolutely unimportant which company generates electrical energy, because after its reproduction it enters the general network.

Generating companies in the wholesale electricity market are well aware that their product falls into the category of essential goods. The population is very sensitive to sudden changes, jumps or absence of these products. Only as a last resort can people replace a centralized source with an autonomous station or gas heating. For this reason, supplies must be reliable and uninterrupted.

Also, when generating electricity, the relationship between the production plan and the consumption forecast is taken into account. It should be as balanced as possible so that there is no imbalance.

Market regulation methods

The wholesale electricity and capacity market is highly dependent on the way the government regulates it. The specific method of regulation, in turn, is selected according to relevant factors:

type of state economy;
type of property;
a way of government intervention in the development of the industry.

Direct government management of the industry

In the case of direct management of the industry, the wholesale electricity market is subject to the influence of the state through its bodies, for example, ministries. The state apparatus manages the work of the industry and all its enterprises. The state directly decides the quantity and volume of supplies, sets the cost and direction of investment of profits. That is, virtually all the work of enterprises in the energy sector (including the price of electricity on the wholesale market) is under control from above. This method is quite tough.

State management of the industry through a state corporation

When governed through a government-owned corporation, the government also has a significant degree of influence over the industry. Unless the management itself is carried out through a specially created corporation. Although this organization works in the interests of the country, it has a certain independence and decision-making ability. This makes it possible to manage the energy sector more carefully, make greater profits and organize the process as efficiently as possible.

State regulation and supervision of the functioning of the industry

This method of regulating the industry is used in the most democratic countries. If all players in the market are private traders, then this is the best way out. The advantage of this method is complete independence. But not everything falls on the shoulders of private entrepreneurs. Licensing, regulating activities and ensuring safety are the work of the state. It also deals with pricing and setting tariffs. Uniform rules are also being developed that are mandatory for the production, transmission and distribution of energy.

Forward market

The way the wholesale electricity market is organized affects not only the efficiency of its development, but also the entire industry as a whole.

The first type of organization of the wholesale electricity market is the forward market. Its essence lies in the supply of products under pre-concluded contracts. The activities of the forward market are carried out on the basis of bilateral contacts, the conclusion of which is directly carried out by the seller and buyer of the goods. There are several ways to move. The first is the execution of a transaction between the manufacturer and the consumer. The essence of the second type of agreement is the resale of products. The conclusion of the third takes place on the relevant exchange, which deals with forwards.

The advantage of this market is its reliability and safety, because it insures both parties in advance against possible force majeure circumstances. Physical implementation of the contract will be completed only after the formation of the daily schedule. This is another advantage, because you don’t need to spend much effort organizing the market.

Day Ahead Market

The trading system of the wholesale electricity market predominantly determines the quantity and timing of deliveries in advance. But since goods can be moved using a variety of methods, unexpected hiccups are likely to occur. However, this problem can be solved quite simply. For this purpose, temporary warehouses are organized. This issue can also be regulated using economic levers (for example, an advance increase in cost). However, coordination of supplies for the electricity market has a specific nature. The main distinctive features of such a market are the instantaneous transmission and consumption. For these reasons, energy flow planning is very important for stable grid operation.

The operation of the system is coordinated by an operator who determines how much, when and to whom to deliver. His job is to schedule the movement of electrical energy. The level of satisfaction of all market participants depends on the accuracy of this plan. Therefore, the operator also takes into account the throughput of sections of electrical networks. Correct calculations will help eliminate the possibility of overload, while using all the power of the lines in full.

Typically, the day on which the operator finalizes the daily schedule is prior to the operating day. The worker contributes to the emergence of an entire market. This method of organization is called “a day in advance.”

Real time market

The wholesale electricity market is characterized by its inaccuracy, because it is very difficult to clearly predict supply volumes. Some deviations from what is specified in the contract are quite possible.

It often happens that in one place there is a lack of energy, while in another, on the contrary, excess appears. In any case, they will not balance each other. If the imbalance is significant, it can lead to system failures. Therefore, the operator regulates supplies.

The real-time market makes it possible to make the system more balanced by trading its participants with their existing imbalances.

Generating companies

Currently, seven large companies operate in the Russian Federation. They interact with each other, and their network is the wholesale energy market. The main objects of the system are thermal power plants. All of them are grouped into six associations. On average, the power of one such group is nine gigawatts. The second generating company of the wholesale electricity market regulates the operation of hydroelectric power plants. It is called "RusHydro". The wholesale market accounts for a third of the country's energy output.

As of today, relations in Russia regarding the purchase and sale of electricity can be divided into two main parts:

purchase and sale on the wholesale electricity market (wholesale electricity and capacity market);

purchase and sale of electricity on the retail electricity market;

The basics of the retail electricity market were discussed in other articles on the site, so in this article we will dwell in more detail on the concept of the wholesale electricity market and WECM capacity.

So, what is the wholesale electricity and capacity market, what rules of the wholesale electricity market exist, as well as which subjects of the wholesale electricity and capacity market have the right to work on it and this will be discussed in this article.
In the wholesale market, sellers and buyers can be:

generating companies of the wholesale electricity market;
electricity export/import operators;
energy sales companies and suppliers of last resort;
grid companies (territorial grid companies and JSC FGC UES) - regarding the purchase of losses;
large consumers.

The above-mentioned subjects of the wholesale electricity and capacity market of the Wholesale Electricity and Capacity Market can be both sellers in the wholesale electricity and capacity market and buyers. In order to obtain the status of the wholesale electricity and capacity market and the right to trade on it, an organization wishing to become a participant in the wholesale electricity and capacity market must meet the requirements set out in the “Rules of the Wholesale Electricity Market”, approved by the Decree of the Government of the Russian Federation dated December 27, 2010 No. 1172, as well as in the Agreement on Accession to the Wholesale Market Trading System (it can be downloaded on the website of the NP “Market Council”).

In Russia, the wholesale electricity and capacity market currently operates only in price zones. The price zone is a part of the territory of the Russian Federation where competition is possible between participants in the wholesale electricity and capacity market. There are two price zones:

first price zone (territory of the European part of Russia and the Urals);

second price zone (Siberia).

In addition, there are so-called non-price zones (regions of the Far East, Arkhangelsk region, Kaliningrad region and the Komi Republic). In these territories, competition is still impossible for various technical reasons. In non-price zones, electricity is sold on the retail electricity and power market at regulated prices. The price and non-price zones of the wholesale electricity market are discussed in more detail below.

Basic principles of operation of the wholesale electricity and capacity market

As the name suggests, the wholesale electricity and power market involves trading of two goods - electricity and power.
Power is a special product, upon the purchase of which the buyer has the right to demand that the generating companies of the wholesale market maintain equipment intended for generating electricity in constant readiness.

In its present form, the wholesale electricity and capacity market has been operating since 2006.

Electricity market

There are several market sectors operating in the wholesale electricity and capacity market:

regulated contracts sector;
day-ahead market;
free contracts sector;
balancing market.

Under regulated contracts in the sector of regulated contracts, electricity tariffs are determined by the FTS of the Russian Federation. At the same time, electricity is purchased in this sector only for supply to the population, as well as to consumers in the area of operation of IDGC of the North Caucasus.

Volumes of electricity that are not purchased under regulated contracts are purchased at unregulated prices within the framework of free contracts, the day-ahead market (DAM) and the balancing market (BM).

The main meaning of free contracts is that participants in the wholesale electricity and capacity market independently determine with whom they will enter into contracts, as well as the prices and volumes of electricity supply.

The day-ahead market (DAM) of the wholesale electricity and capacity market is a competitive selection of price bids from suppliers and buyers carried out by ATS OJSC a day before the actual supply of electricity with the determination of prices and supply volumes for each hour of the day. On the DAM, marginal pricing is carried out, i.e. the price is determined by balancing supply and demand and applies to all market participants. The DAM price is determined for each of about 8,000 nodes in both price zones.

Price indices and trading volumes on the DAM are published daily on the website of ATS OJSC.

To submit an application for the purchase of electricity on the day-ahead market, buyers of the wholesale market send these applications in accordance with the established deadlines to ATS OJSC. Thus, all large consumers who operate in the wholesale electricity and capacity market must submit applications with planned hourly electricity consumption to purchase electricity on the market one day in advance.
To eliminate the risk of price manipulation on the day-ahead market, applications for the purchase of electricity with the lowest price must be satisfied first.

However, actual electricity consumption always differs from planned electricity consumption. In this regard, a consumer who has submitted an application to purchase electricity on the day-ahead market will either have a shortage of electricity (if the fact is greater than the plan) or an excess of electricity purchased on the day-ahead market (the plan is greater than the actual). Because of this, these deviations are traded in real time in the balancing market. It is worth noting that the purchase price of electricity on the balancing market is significantly higher than the purchase price on the day-ahead market, and the selling price is significantly lower. Those. It is necessary to plan your hourly consumption in such a way as to achieve a minimum deviation of the actual from the plan, because a significant deviation will result in a significant increase in energy costs. At the same time, for every 3 hours up to the hour of actual delivery, the system operator (SO UES OJSC) conducts additional competitive selections of suppliers' applications, taking into account forecast consumption in the power system, economic efficiency of loading stations and system reliability requirements.

In addition, deviations of actual consumption from planned ones are qualified by one’s own or external initiatives. Own initiative arises due to the actions of a market participant (consumer or supplier), external initiative - as a result of commands from the System Operator or an accident that led to a forced change in the mode of production or consumption of electricity. To determine the cost of deviations for various types of initiatives, calculation formulas (cuts) are used, calculated for each hour of the day for each node of the calculation model. Cut-offs are defined as the maximum (minimum) values of the BR indicator and the DAM price, thereby stimulating more accurate execution of planned electricity consumption and production. Based on the cost of deviations, the preliminary requirements and preliminary obligations of the BR are determined, the difference between which forms the imbalance of the balancing market. Negative imbalance is distributed among participants in proportion to their own initiatives. The positive imbalance is distributed between suppliers, in proportion to the amount of execution of external initiatives, and consumers, who adhere to planned consumption as closely as possible. Thus, in BR, market participants who allow the largest deviations of actual consumption and output from planned ones on their own initiative are “fined”, and participants who adhere to planned consumption and carry out the commands of the System Operator as accurately as possible are “bonded”.

Power Market

Since June 1, 2008, capacity trading has been carried out on the basis of competitive capacity selection (CPO) conducted by the system operator. Wholesale market participants who have passed the procedure for admission to the COM have the opportunity to submit applications in an amount not exceeding the maximum available capacity taken into account by the Federal Tariff Service of Russia in the forecast balance for the corresponding regulatory period. Buyers are required to pay for all power taken from the KOM in their price zone. Suppliers in each price zone are jointly and severally responsible for fulfilling their obligations to provide capacity.
The transitional capacity market provided the opportunity to sell part of the capacity at unregulated prices, within the framework of electricity and capacity purchase and sale agreements (SPEA), including on the stock exchange, and the purchase and sale of capacity based on the results of competitive selection. Resolution of the Government of the Russian Federation No. 89 dated February 24, 2010 approved changes to the Wholesale Market Rules, ensuring the launch of the long-term capacity market (LCM) model. As in the area of electricity trade, since 2011, power has been supplied under regulated contracts only in the volumes necessary for supply to the population and equivalent categories of consumers.

The main differences between the DRM and the transitional capacity market:

Within the framework of the KOM, power is selected not for a year in advance, but for 4 years (starting from 2016), which guarantees payment of power to the supplier for the period of construction of new capacities;
Pricing is carried out within the framework of free flow zones (FZZ), rather than price zones, which makes it possible to generate local price signals for buyers and power suppliers;
As part of competitive selection, not all available capacity is selected and paid for, which contributes to increased competition among capacity suppliers.
The long-term capacity market includes capacity supply agreements to ensure financing of investments in new generation.

Price and non-price zones of the wholesale electricity market.

Price and non-price zones of the wholesale electricity market

On the territory of Russia it is customary to distinguish two price zones of the wholesale electricity and capacity market. On the map they are marked 1 and 2. In the price zones of the wholesale electricity and power market of the Wholesale Electric Energy and Power Market, electric energy and power can be supplied at unregulated (free) prices. Those. electricity prices on the wholesale market are formed taking into account competitive bids from sellers and buyers (subjects of the wholesale electricity market). Generating companies of the wholesale electricity and capacity market also sell generated electricity and capacity on the wholesale market at unregulated prices. The average value of the unregulated price per month for a participant in the wholesale electricity and capacity market is called the weighted average unregulated price for electrical energy. Guaranteed electricity suppliers are required to post free, unregulated electricity prices on their official website every month.

At the same time, not everywhere in Russia the price of electricity and capacity for consumers is formed using elements of competition: for example, in the territory marked on the map with the number 5, competition is in principle not possible. Such zones are called isolated zones of the wholesale electricity and capacity market.

Territories marked 3 and 4 are non-price zones of the wholesale electricity and capacity market.

In some territories that are shaded on the map there are Features of the operation of the wholesale and retail electricity and capacity markets.

Do you want to know how to enter the wholesale electricity market so as not to regret it later? Read this article

Subjects of Russia included in the first price zone of the wholesale electricity market

Republic of Adygea

Republic of Bashkortostan

The Republic of Dagestan

The Republic of Ingushetia

Kabardino-Balkarian Republic

Republic of Kalmykia

Karachay-Cherkess Republic

Mari El Republic

The Republic of Mordovia

Republic of North Ossetia - Alania

Republic of Tatarstan

Udmurt republic

Chechen Republic

Chuvash Republic

Krasnodar region

Perm region

Astrakhan region

Belgorod region

Bryansk region

Vladimir region

Volgograd region

Vologda Region

Voronezh region

Ivanovo region

Kaluga region

Kirov region

Kostroma region

Kurgan region

Kursk region

Leningrad region

Lipetsk region

Moscow region

Nizhny Novgorod Region

Novgorod region

Orenburg region

Oryol Region

Penza region

Pskov region

Rostov region

Ryazan Oblast

Samara Region

Saratov region

Sverdlovsk region

Smolensk region

Tambov Region

Tver region

Tula region

Ulyanovsk region

Chelyabinsk region

Yaroslavl region

city of St. Petersburg

part of the territory of the Tomsk region (within the boundaries of which the equilibrium price of the wholesale market is formed) and the Omsk region, for which electrical energy is supplied from the territory of the integrated energy system of the Urals

territories of the Nenets Autonomous Okrug, Khanty-Mansiysk Autonomous Okrug - Ugra, Yamalo-Nenets Autonomous Okrug, Stavropol Territory, Republic of Karelia, Murmansk Region, Tyumen Region, within whose borders the equilibrium price of the wholesale market is formed.

Subjects of Russia included in the second price zone of the wholesale electricity market

Subjects of Russia included in non-price zones of the wholesale electricity market

The first non-price zone of the wholesale electricity and capacity market:

Kaliningrad region

Komi Republic

Arhangelsk region

The second non-price zone of the wholesale electricity and capacity market:

The territory of the Far East, which unites the territories of the South Yakut region of the Republic of Sakha (Yakutia), Primorsky Territory, Khabarovsk Territory, Amur Region, Jewish Autonomous Region

List of territories of price zones of the wholesale market, for which the features of the functioning of the wholesale and retail markets are established

The Republic of Dagestan;

The Republic of Ingushetia;

Kabardino-Balkarian Republic;

Karachay-Cherkess Republic;

Republic of North Ossetia - Alania;

Chechen Republic;

Today there are two electricity markets in our country - wholesale electricity market and retail market. Entering the wholesale market can bring significant benefits to owners of private buildings and businesses, but to do this, you need to understand how this market works, who its participants are, and other important issues.

In the wholesale trade market, large producers act as suppliers of energy, while buyers can be electricity sales enterprises, network companies, as well as electricity consumers whose facilities require the use of large capacities. In some cases, buyers can take on the responsibilities of sellers and trade in the wholesale electricity market in the same way as producers.

To enter the wholesale market, an enterprise must meet all the necessary requirements set out in the current energy legislation. In the wholesale market, tariffs for large consumers may be more profitable.

Today, trading on wholesale markets is possible only in those regions of our state that belong to price zones. In these territories, the government has allowed the functioning of such markets and healthy competitive relations in them. In total, there are two price zones - the territories of the European part of the country, the Urals and Siberia.

In the figure below, the price territorial zones of our country are marked with the numbers “1” and “2”. All other regions of Russia belong to non-price territories.

In non-price territorial zones of the country, the functioning of the wholesale electricity market is limited, and sales on the retail market are carried out at tariffs regulated by government control bodies.

Market work

In the modern wholesale market, electricity and power are bought and sold. By purchasing the power necessary to supply electricity to an enterprise, the consumer receives the right to demand that the supplier maintain its energy facilities in a constant working condition.

There are several separate sectors operating on the market: regulated and free contracts, the balance market and the day-ahead purchase market.

In the regulated contract sector, only enterprises that will subsequently supply electricity to end consumers are allowed to make purchases. The relationship between the parties in the sector is controlled by the state tariff service.

The remaining volumes of electricity after the conclusion of regulated contracts can be sold under free contracts. A free contract allows trading participants to independently choose a buyer and supplier, as well as determine the cost of electricity and capacity.

Purchasing electricity one day in advance involves submitting applications from buyers and considering these applications by sellers one day before the actual supply of energy.

To purchase electricity one day in advance, the buyer must fill out an appropriate application in the prescribed form and within the time limits specified by law. Such an application must indicate the amount of planned hourly consumption. Working in the market in this sector is associated with significant risks for buyers, since the level of real consumption for electrical projects of country houses, apartments and enterprises always differs from the planned values. Because of this, the buyer may have an excess of electricity or a shortage.

The difference between real and planned consumption can be sold or purchased in the balancing market. Naturally, this sector has the highest energy prices for buyers and the lowest prices for sellers. Getting into the market with a balance with a large difference between the purchased and the required amount of energy necessarily leads to significant financial losses, therefore, when drawing up plans for energy consumption, it is necessary to carry out all the necessary calculations correctly.

The difference between actual and planned consumption may appear not only due to incorrect preliminary calculations, but also due to various external reasons that the buyer cannot influence. Among the most common causes of such problems are various failures in the work of the supplier and equipment breakdowns. To calculate the required reimbursement for such costs, special formulas are used that take into account the amount of energy not supplied to the consumer, as well as load hours.

Power Market

The main changes in the functioning of the capacity trading market occurred in 2008. Since then, the market has operated based on competitive selection. Capacity selection on a competitive basis is carried out by the system administrator, who regulates the relationships between market participants. Only after the administrator has approved the enterprise can it enter the wholesale capacity market as a buyer or seller.

An application to enter the market by an enterprise must indicate the required sales volume, the value of which does not exceed the restrictions established by state regulatory authorities. All approved capacity by the control authorities must be purchased by buyers, and suppliers assume collective responsibility for delivering supplies in the specified volumes.

By working according to this scheme, the capacity market makes it possible to partially sell capacity at prices set by the suppliers themselves. Currently, power contracts regulated by control authorities are concluded only in the volumes necessary to supply all categories of the population.

Below you can use the online calculator to calculate the cost of connecting to electrical networks:

1	Submission of documents to the electrical network, support of the application; writing templates/samples, examination of filling (without acceleration)	PC.	5000
2	Simplified electrical diagram (single-line, without approvals)	PC.	5000
3	Approval of the electrical circuit design	PC.	10000
4	Electrical installation design (without approvals)	PC.	5000
5	Electrical installation power supply project (with preliminary approvals)	PC.	15000
6	All approvals, delivery to the power grid expert/Energonadzor with SRO documents, power supply agreement, subscriber book	PC.	50000
7	Legalization of illegal connections without penalties	PC.	80000
8	Installation of a branch and installation of a metering cabinet with equipment (excluding materials)	PC.	25000
9	Budgeting	PC.	3000

		Total

Total

The wholesale electric energy and power market (WEM), in accordance with Federal Law No. 35 - Federal Law of March 23, 2003 “On Electric Power Industry”, is the sphere of circulation of special goods - electric energy and power - within the framework of the Unified Energy System of Russia within the boundaries of a single economic space of the Russian Federation. Large producers and large buyers of electrical energy and capacity, as well as other persons who have received the status of a subject of the wholesale market and act on the basis of the rules of the wholesale market approved by the Government of the Russian Federation, take part in trading on the wholesale electricity market.

On September 1, 2006, in accordance with the Decree of the Government of the Russian Federation of August 31, 2006 N 529 “On improving the functioning of the wholesale electricity (capacity) market,” a new liberal model of the wholesale electricity (capacity) market was launched.

The legal basis for the functioning of the wholesale market is established by the Federal Law “On Electric Power Industry”, as well as the rules of the wholesale market established by the Government of the Russian Federation, regulatory legal acts of federal executive authorities provided for by the rules of the wholesale market.

Trading on the wholesale electricity and capacity market is carried out in accordance with the agreement on accession to the trading system and the regulations of the wholesale market, developed by the market council - a self-regulatory organization of wholesale market participants.

The rules of the wholesale market regulate relations related to the circulation of electrical energy and capacity on the wholesale market, to the extent provided for by the Federal Law “On Electric Power Industry”. The regime for the export and import of electrical energy is established in accordance with the legislation on state regulation of foreign trade activities.

In cases and in the manner determined by the Government of the Russian Federation, the wholesale market regulates relations related to the turnover of a special product - power, and other goods and services necessary for organizing effective trade in electrical energy in the short and long term.

Currently, a two-level (wholesale and retail) electricity and capacity market operates on the territory of the Russian Federation. In the wholesale market, sellers and buyers are generating companies, electricity export/import operators, sales organizations, network companies (in terms of purchasing electricity to cover transmission losses), and large consumers. Wholesale market entities can act as both sellers and buyers of electricity and capacity. To obtain the status of a wholesale market participant, an organization must meet the requirements set out in the Rules of the Wholesale Electricity (Power) Market approved by Decree of the Government of the Russian Federation of December 27, 2010 No. 1172 and in the Agreement on Accession to the Wholesale Market Trading System.

Most of the country's generating assets are concentrated in thermal generating companies of the wholesale electricity market (OGK), the federal hydrogenerating company of the wholesale market (JSC RusHydro), 14 territorial generating companies (TGK) and the state concern Rosenergoatom. The main high-voltage power transmission lines are managed by the state-owned Federal Grid Company (JSC FGC). State blocks of shares in interregional distribution grid companies (IDGCs) were transferred to JSC IDGC Holding. Dispatch control of the unified energy system of Russia is carried out by the system operator (JSC SO UES). Among the large companies in the industry, one should also mention the state-controlled vertically integrated holding OJSC RAO ES of the East, which unites the generation, distribution and sale of electricity in the Far Eastern regions, and OJSC Inter RAO UES, which is an operator of export-import of electricity, and also owns generating assets in Russia and abroad.

The wholesale electricity and capacity market operates in regions united into price zones. The first price zone includes the territories of the European part of Russia and the Urals, the second - Siberia. In non-price zones (Arkhangelsk and Kaliningrad regions, the Komi Republic, regions of the Far East), where for technological reasons the organization of market relations in the electric power industry is not yet possible, the sale of electricity and power is carried out according to special rules.

Basic principles of functioning of the wholesale electricity and capacity market

Two goods are traded on the wholesale market - electricity and power. Power is a special product, the purchase of which provides a participant in the wholesale market with the right to demand that the power seller maintain the readiness of generating equipment for generating electricity of established quality in the volume necessary to satisfy the demand for electrical energy of this participant.

In its current form, the wholesale electricity market has been operating since September 1, 2006, when new rules for the functioning of the wholesale electricity (capacity) market were introduced by decree of the Government of the Russian Federation.

Electricity market

The wholesale electricity market has several sectors that differ in terms of transactions and delivery times: the sector of regulated contracts, the sector of free contracts, the day-ahead market, and the balancing market.

Since 2011, within the price zones of the wholesale electricity and capacity market, regulated agreements (RAs) have been concluded only in relation to volumes of electricity and capacity intended for supply to the population, consumer groups equivalent to the population

Prices (tariffs) for the supply of electrical energy and capacity under regulated contracts are calculated according to price indexation formulas determined by the federal executive body in the field of state regulation of tariffs. The volumes of electricity and power supply under the RD are established within the framework of the consolidated forecast balance of production and supply of electrical energy formed by the Federal Tariff Service in such a way that for the electricity and capacity producer included in the consolidated balance sheet, supplies under the RD do not exceed 35% of the total volume of electricity supply ( capacity) to the wholesale market, determined in the balance sheet solution for the corresponding manufacturer.

Volumes of electricity not covered by regulated contracts are sold at unregulated prices within the framework of free contracts, the day-ahead market (DAM) and the balancing market (BM).

Under free contracts, market participants independently determine counterparties, prices and supply volumes.

The day-ahead market (DAM) is a competitive selection of price bids from suppliers and buyers conducted by a commercial operator (JSC ATS) one day before the actual supply of electricity, with the determination of prices and supply volumes for each hour of the day. On the DAM, marginal pricing is carried out, i.e. the price is determined by balancing supply and demand and applies to all market participants. The DAM price is determined for each of about 8,000 nodes in both price zones.

Price indices and trading volumes on the DAM are published daily on the website of ATS OJSC.

To reduce the risks of price manipulation on the DAM, a system has been introduced to encourage participants to submit competitive price bids - in accordance with trade rules, bids for the supply of electricity with the lowest price are satisfied first.

The volumes of electricity sold under bilateral agreements and the DAM form the planned electricity consumption. However, actual consumption inevitably differs from planned consumption. Deviations from planned production/consumption are traded in real time on a balancing market. At the same time, for every 3 hours up to the hour of actual delivery, the system operator (SO UES OJSC) conducts additional competitive selections of suppliers' applications, taking into account forecast consumption in the power system, economic efficiency of loading stations and system reliability requirements.

Deviations of actual consumption from planned ones are qualified by one’s own or external initiatives. Own initiative arises due to the actions of a market participant (consumer or supplier), external initiative - as a result of commands from the System Operator or an accident that led to a forced change in the mode of production or consumption of electricity. To determine the cost of deviations for various types of initiatives, calculation formulas (cuts) are used, calculated for each hour of the day for each node of the calculation model. Cut-offs are defined as the maximum (minimum) values of the BR indicator and the DAM price, thereby stimulating more accurate execution of planned electricity consumption and production. Based on the cost of deviations, the preliminary requirements and preliminary obligations of the BR are determined, the difference between which forms the imbalance of the balancing market. Negative imbalance is distributed among participants in proportion to their own initiatives. The positive imbalance is distributed between suppliers, in proportion to the amount of execution of external initiatives, and consumers, who adhere to planned consumption as closely as possible. Thus, in BR, market participants who allow the largest deviations of actual consumption and output from planned ones on their own initiative are “fined”, and participants who adhere to planned consumption and carry out the commands of the System Operator as accurately as possible are “bonded”.

Power Market

The transitional capacity market provided the opportunity to sell part of the capacity at unregulated prices, within the framework of electricity and capacity purchase and sale agreements (SPEA), including on the stock exchange, and the purchase and sale of capacity based on the results of competitive selection. Resolution of the Government of the Russian Federation No. 89 dated February 24, 2010 approved changes to the Wholesale Market Rules, ensuring the launch of the long-term capacity market (LCM) model. As in the area of electricity trade, since 2011, power has been supplied under regulated contracts only in the volumes necessary for supply to the population and equivalent categories of consumers.

The main differences between the DRM and the transitional capacity market:

Within the framework of the KOM, power is selected not for a year in advance, but for 4 years (starting from 2016), which guarantees payment of power to the supplier for the period of construction of new capacities;
Pricing is carried out within the framework of free flow zones (FZZ), rather than price zones, which makes it possible to generate local price signals for buyers and power suppliers;
As part of competitive selection, not all available capacity is selected and paid for, which contributes to increased competition among capacity suppliers.
The long-term capacity market includes capacity supply agreements to ensure financing of investments in new generation.

In the long-term market, competitive capacity selection is carried out based on the demand forecast for the corresponding supply period formed by the System Operator. If the actual demand for capacity exceeds the forecast, corrective competitive selection may be carried out.

During the commissioning process, first of all, the capacity introduced under CSA and similar CSA agreements with nuclear power plants and hydroelectric power plants is selected. Capacity that has not passed competitive selection is not paid, with the exception of the capacity of generating facilities, the operation of which is necessary to maintain the technological operating conditions of the energy system or the supply of thermal energy (forced generators). The power and electricity of forced generators is paid at the tariff established by the FTS.

Among the mechanisms for realizing power, the DRM provides for:

purchase/sale of capacity selected based on the results of competitive capacity selection, under power purchase and sale agreements concluded based on the results of competitive capacity selection;
purchase/sale of capacity under free capacity purchase and sale agreements (CPAs), including on the stock exchange;
purchase/sale of capacity under power supply agreements and under power purchase and sale agreements for new nuclear power plants and hydroelectric power plants, similar to CSAs;
purchase/sale of capacity of generating facilities classified as generating facilities supplying power in forced mode;
purchase/sale of power under regulated contracts (in the volume of supply to the population and similar categories);
purchase/sale of capacity, generating facilities, determined based on the results of additional selection of investment projects, carried out in the case when the volume of capacity selected based on the results of competitive selection of capacity in any free flow zone does not satisfy the demand for capacity;
purchase and sale of capacity, generating facilities, determined based on the results of competitions for investment projects for the formation of a promising technological reserve of capacity (investment guarantee mechanism - MGI).

In December 2010, the first campaign for signing capacity supply agreements (CSA) was completed. A thermal generation facility commissioned under a capacity supply agreement receives a capacity payment guarantee for 10 years (15 years for agreements similar to CSAs concluded with nuclear power plants and hydroelectric power plants), ensuring the return of capital costs and agreed operating costs. The amounts of operating and capital costs used in calculating the cost of capacity under CSA are determined in Decree of the Government of the Russian Federation No. 238 dated April 13, 2010.

In accordance with the Basic provisions for the functioning of retail electricity markets, approved by Decree of the Government of the Russian Federation dated August 31, 2006 No. 530, from January 1, 2011, electric energy in full (except for the volume of electricity supplied to the population and equivalent categories of consumers) is supplied by free (unregulated) prices.

For 2013, TNS energo Mari El PJSC concluded 60 regulated contracts with electricity (capacity) suppliers for 100% of the volume of electricity and power consumption for the group (population), approved by the Federal Tariff Service of Russia, 42 contracts for the purchase of electrical capacity based on the results of competitive power selection, 16 agreements for the purchase of electrical capacity of new nuclear power plants/hydroelectric power plants, 25 agreements for the purchase of power produced using generating facilities that supply power in forced mode, 28 agreements for the purchase of power under power supply agreements.