The Market Operator (OMIE), in accordance with its role as the system manager of energy purchase and sale bids, is in charge of carrying out settlement for the outcomes of the matching processes on the day-ahead and intraday markets, acting as a central counterparty between buyers and sellers.
After each day-ahead and intraday market auction session and after each round of negotiation for the intraday continuous market comes settlement of matched transactions and updating said information on the agents' website.
Each agent's daily settlement is the sum of hourly entries corresponding to sales and purchases made during each hour of the various bidding sessions and trading rounds on the continuous market.
For shared bidding units, the market operator will settle with each agent according to their percentage of participation in those power plants. Below are the entries to be carried out in settlements on the day-ahead and intraday bidding markets and on the intraday continuous market:
1. DAY-AHEAD AND INTRADAY MARKETS
In settlement, for each hour and market session, both day-ahead and intraday, the following account entries are done with respect to the units, valuing the energy matched to the marginal price in the zone (Spain or Portugal) to which the unit belongs:
- Each selling unit is entered as a collection right equal to the energy sold times the marginal price in its zone.
- Each buying unit is entered as a payment obligation equal to purchases made times the marginal price in its zone.
2. INTRADAY CONTINUOUS MARKET
In settlement, for each hour and trading session on the intraday continuous market, the following entries are done with respect to the units, valuing the energy matched to the price of the resulting transaction:
- Each selling unit is entered as a collection right equal to the energy sold times the transaction price.
- Each buying unit is entered as a payment obligation equal to purchases made times the price of the resulting transaction, if that price is positive.
- Each buying unit is entered as a collection right equal to purchases made times the price of the resulting transaction, if that price is negative.
Each account entry is linked to the bidding round in which the offer was matched.
This is the income generated at the times when, as a result of matching, two price zones are decoupled, so the price in the exporting zone is lower than that in the importing zone. This happens when the limit on the exchange capacity established between those areas is reached. The amount of congestion income equals the total energy exchanged times the price difference between the two price zones, and it is settled as follows:
- In the case of a market separation between Spain and Portugal, the congestion incomet due to price difference between Spain and Portugal is assigned at an equal 50% (fifty-fifty) among system operators in both countries.
- In the case of a market separation between Spain and France, the congestion income due to price difference between Spain and France is assigned at an equal 50% (fifty-fifty) among system operators in both countries.
- In the case of a market separation between Spain and another country outside of the EU, the congestion income due to the price difference between Spain and that country is assigned to the Spanish system operator.
For any agent who participates in the market, either directly or in the name of and on behalf of third parties (direct representation), the market operator will settle to the account of the holder agent.
However, when an agent is acting in their own name and on behalf of third parties (indirect representation), settlement will be made to the representative's account.
OMIE will settle each of the activities in which an agent may participate in the day-ahead and intraday markets separately, considering activities to be: Production (for facilities listed in the production facilities administrative registry), Trading or Direct Market Consumer.
OMIE, acting as a central counterparty, settles flows resulting from the interconnection between Spain and France due to their market coupling processes with nominated market operators in France (or their central counterparties).
Similarly, on the intraday continuous market, OMIE acts as a central counterparty and has signed settlement agreements with nominated market operators in France in order to settle corresponding cross-border transactions.
Since the implementation of the intraday continuous market, agents are not required to report disaggregations of programs matched on the day-ahead and intraday markets corresponding to their facilities that are represented in the name of and on behalf of third parties.
In those cases, entries (collection rights and payment obligations) will continue to be assigned to the agent represented, but they will be identified with the representative's bidding unit.
After each market session, OMIE makes a draft settlement available to agents that can be consulted on the agents' website.
Additionally, the market operator makes as-of-yet unpublished settlements from previous day-ahead and intraday market sessions available to market agents every business day. This publication is called daily settlement.
This information is available on the Market Operator's Information System.
The market operator publishes daily settlement results for each agent in different formats (txt, XML, etc.) on the Market Operator's Information System for downloading and subsequent processing.
To ensure confidentiality per Market Rules, each agent may download their daily settlement results by accessing the Market Operator's Information System using their digital certificate.
They have access to more information on the Market Operator's Information System (https://www.mercado.omie.es).
Agents may consult the agents' website to check settlement results for their operations on the continuous intraday market. These queries are updated after each trading round to include the settlement for transactions matched in that round.
Likewise, agents may also download their daily settlement results in electronic formats (as .txt files in the ZIP file for entries, as well as XML files), which are published according to the settlement calendar and include both bidding and continuous market results.
Account entries (collection rights and payment obligations) corresponding to the intraday continuous market will appear as associated with a new segment ('S.CONT') and will therefore be distinguishable from daily market transactions ('S.DIAO' segment) and intraday bids ('S:INTRD' segment).
Details on the format for settlement files may be found at the following link: Link to the document Formatos_Intercambio_OM_Vol_II-Liquidaciones_v23.
Once the daily settlement is published, agents have a period of three business days to submit the claims they deem appropriate, while the market operator has an additional three business days to handle these claims.
Agents must submit claims through the mechanisms designed for this purpose on the Market Operator's Information System.
Should a settlement not be final for any reason, the Market Operator must note its provisional nature. Otherwise, the settlement becomes final.
More detailed information on settlement processes is available in the market rules section, which can be accessed via the menu "Market Rules" → "OMIE Rules".