The Electricity Sector Law 54, of 27 November 1997, and Royal Decree 2019, of 26 December 1997, which govern the organisation and regulation of the electricity production market, entrust functions to the market operator, which can be classified as follows:
1. Functions relating to the operation of the markets.
- Receipt of the sale bids issued for each programming period by the different parties participating in the daily electrical energy market.
- Receipt of the bids for acquiring energy.
- Receipt of the necessary information from the entities participating in the electrical energy markets, so that their traded energy is taken into consideration for the matching process and for making the settlements which are the responsibility of the market operator.
- Receipt of the guarantees which are applicable in each case. It is entitled to manage these guarantees directly or through authorised third parties.
- Implementing the matching process of the bids for sale and purchase starting from the cheapest offer until demand is matched in each programming period.
- Determination of the different energy prices resulting from the matching processes in the daily electrical energy market for each programming period and notification to all agents involved.
- Settlement and communication of the payments and collections to be carried out in accordance with the energy prices resulting from the matching processes and other costs that may be laid down according to regulations.
- Communication to the system operator of the bids for the sale and purchase of electrical energy, made by the different parties participating in the electrical energy markets under their responsibility, for each one of the programming periods.
- Communication to the system operator of all agent additions, deletions and modifications and, where appropriate, bid units, with sufficient forewarning for the correct updating of the information systems.
- Definition, development and operation of the necessary computer systems to guarantee the transparency of the transactions carried out in the daily and intraday production market.
2. Functions relating to Market Activity Rules and the Contract of Adherence.
- Proposal on the operating rules of the production market which they consider appropriate for the implementation of the provisions of Act 54/1997, concerning the electricity sector, the present Royal Decree and regulations thereof to the Ministry of Industry, Tourism and Trade for its approval, which shall be settled following a report by the Spanish Energy Commission.
- Submission of modifications to the Rules and of the Contract of Adherence for Ministerial approval.
- Require market participants to show their compliance with the rules governing their duties as market participants.
3. Functions relating to information to be provided to market participants.
- Regarding the results of the matching, providing participants with the information concerning their production and purchase units.
- Providing market participants with the marginal price of electricity in the daily market and in the intraday market sessions, as well as the final prices of electricity.
- Notifying the participants of the collections and payments that must be done in accordance with the results of the matched bids in the daily and intraday market.
- Guarantee the confidentiality of any confidential information made available by market participants, in accordance with applicable regulations.
4. Functions relating to information given to third parties.
- Publish the aggregate supply and demand curves of the daily and intraday markets.
- Publish the results of the power programs aggregated by participant and month in the electricity production market, one month after the last day of the month to which they refer.
- Publish monthly the bids submitted by the participants in each of the daily and intraday markets, three months after the end of the month to which they refer.
- Publish information on market developments with the frequency required in each case.
- Publication of the average price indexes on an hourly basis of the Daily and Intraday Market. In addition, it shall publish online the relevant information under the terms and conditions laid down in section 28 of Royal Decree-Act 6/2000, of 23 June, concerning Urgent Measures for Intensifying Competition in Goods and Services Markets.
- Calculate and publish the average final price of the electricity production market as well as the final price components.
5. Functions relating to the principles of independence, transparency and objectivity.
- Adopt any measure and agreements that may be necessary in order to ensure effective compliance with the limitations on direct or indirect capital stock holdings in the Company, including via purchases of stock, obligatory for the affected party, of the capital stock that constitutes a breach of this legal requirement.
- Prepare and publish the market operator's code of conduct.
- Notify the competent authority of any behaviour exhibited by the market participants that may disrupt the proper operation of the market.