CAM Bundles: potential to become unbundled Bundling: preparing for - PowerPoint PPT Presentation

CAM Bundles: potential to become unbundled

Bundling: preparing for auction Offered in auction TSO A: available TSO B: available on PRISMA capacity capacity 80 40 Unbundled 40 units surrendered capacity from Shipper 1 40 (bundled) 40 40 units Bundled 40 units surrendered unsold capacity from primary Shipper 1 capacity (bundled) TSO A TSO B 2

Bundling: results of auction Offered in auction TSO A: capacity TSO B: capacity on PRISMA following auction following auction now unbundled 30 units are 40 Unbundled 40 units surrendered capacity returned to 10 units Shipper 1 surrendered 10 units unsold capacity returned 30 30 primary capacity to Shipper 1 30 units 30 units 30 units surrendered bundled primary capacity from Shipper capacity sold capacity sold to 1 reallocated to Shipper 2 Shipper 2 TSO A TSO B 3

Bundled capacity may become unbundled Bundled capacity may become unbundled through different mechanisms ¾ Surrender ¾ Previous example shows different levels of unsold primary capacity. A Shipper surrenders bundled capacity on both sides of the IP but auction results may lead to reallocation of one side of the bundle only ¾ Could also be different Shipper surrendering unbundled capacity earlier than Shipper 1 as reallocation according to timestamps ¾ Buy-back ¾ LT UIOLI ¾ Shipper termination ¾ Others? 4