011-03-271 - Consultancy Advice on Implementing the Target Model in the SEM and recommending required changes to the SEM High Level Design

The RAs c/o Commission for Energy Regulation

The Commission for Energy Regulation (CER) and the Northern Ireland Authority for Utility Regulation (or Utility Regulator (UR)), known as the Regulatory Authorities (or RAs) have developed an all-island Single Electricity Market (SEM) which came into operation on 1st November 2007. European Heads of State and Governments have pledged to create an internal market for electricity by 2014. Throughout the European Union, national electricity markets are being reviewed to align with a common European ‘Target Model' for cross border capacity allocation and congestion management upon which the Internal Electricity Market is to be founded. Detailed rules that give legal effect to this Target Model are expected to be binding on all EU internal borders by 2014.
The Single Electricity Market (SEM) operating in Ireland and Northern Ireland will require significant modifications to its high level design to implement the Target Model. The magnitude of change required for the SEM to achieve this is considered to be greater than for most other markets in Europe owing to its centralised, gross mandatory pool design which differs in a number of key respects from the prevailing market design in most other European Member States. At its February 2013 meeting, following discussions with respective Government departments, the SEM Committee approved a Decision Paper confirming the next steps in the project to implement the target model in SEM. This was published on 15th February 2013. The SEM Regulatory Authorities (RAs) now invites tenders for experienced electricity market design consultants to advise the RAs on implementing the requirements of the EU's Electricity Target Model.

Deadline

The time limit for receipt of tenders was 2013-05-02. The procurement was published on 2013-03-22.

Suppliers

The following suppliers are mentioned in award decisions or other procurement documents:

• Pöyry Management Consulting (UK) Ltd

Who?

• The RAs c/o Commission for Energy Regulation

What?

Where?

• Éire/Ireland

Procurement history

Date	Document
2013-03-22	Contract notice
2013-10-01	Contract award notice

Contract notice (2013-03-22)
Object
Scope of the procurement
Title: Financial consultancy services
Quantity or scope:

It is envisaged that the key outputs will be the following;Consultation Paper:It is expected that the Consultation Paper will put forward a number of coherent end to end market design options for the SEM redesign. Each option will be assessed against the SEM high level principles and should be consistent with the decisions in the SEM Committee Decision on Next Steps (SEM-13-009). These options should be sufficiently developed to allow SEM Committee, stakeholders and participants to be in a position to understand how the market will work, differ from SEM, interact with neighbouring markets and consider the impacts on generators, suppliers and consumers, notwithstanding that the detailed design rules will remain to be developed in the detailed design/implementation phase of the project.Draft Decision Paper:It is expected that the Draft Decision Paper will consider the responses received to the consultation and on this basis recommend to SEM RAs a sufficiently detailed preferred market design option(s) with associated impacts and costs and benefits as appropriate.Decision Paper:The final SEM Committee Decision Paper will take the responses received the Draft decision into consideration and should set out the revised High Level design of the SEM. It is expected that there will be a considerable level of detail on the design of the market in the high level design. The high level design should be clear on how the various market timeframes for trading in revised SEM design will operate. If the final decision is to maintain a capacity remuneration mechanism the high level design of this mechanism should also be outlined. Market power mitigation measures or requirements for same should also be considered. The high level design should be sufficiently detailed and understandable to enable evaluation but the detailed design of rules as happened in the original design of SEM will take place after the high level design document is published.Timeframe:Engagement with SEM RAs / TSO / Departments': June 2013Stakeholder Engagement and paper drafting: June to August 2013Consultation Paper on High Level Design : September 2013Consideration of Responses and redrafting of HLD: September 2013 –February 2014Draft Decision Paper on High Level Design: February 2014Consideration of Responses and development of final Decision Paper: February – May 2014Decision Paper on High Level Design: May 2014

Quantity or scope

Notice metadata
Original language: English 🗣️
Document type: Contract notice
Nature of contract: Services
Regulation: European Union, with participation of GPA countries
Common procurement vocabulary (CPV)
Code: Financial consultancy services 📦

Procedure
Procedure type: Open procedure
Type of bid: Submission for all lots
Award criteria
The most economic tender

Contracting authority
Identity
Country: Ireland 🇮🇪
Awarding authority type: Body governed by public law
Awarding authority name: The RAs c/o Commission for Energy Regulation
Postal address: The Exchange, Belgard Square North
Postal town: Tallaght
Contact
Internet address: http://www.cer.ie 🌏
E-mail: procurement@cer.ie 📧
Phone: +353 14000800 📞
Fax: +353 14000850 📠

Reference
Dates
Date dispatched: 2013-03-22 📅
Submission deadline: 2013-05-02 📅
Publication date: 2013-03-26 📅
Identifiers
Notice number: 2013/S 060-100563
OJ-S issue: 60
Additional information

To receive more information about this tender, including any amendments and/or clarifications and to request any clarifications and/or to respond to this tender, you must register your interest to this tender on the following site: https://irl.eu-supply.com/app/rfq/rwlentrance_s.asp?PID=64149&B=ETENDERS_SIMPLE

Object
Scope of the procurement
Short description:

The Single Electricity Market (SEM) operating in Ireland and Northern Ireland will require significant modifications to its high level design to implement the Target Model. The magnitude of change required for the SEM to achieve this is considered to be greater than for most other markets in Europe owing to its centralised, gross mandatory pool design which differs in a number of key respects from the prevailing market design in most other European Member States. At its February 2013 meeting, following discussions with respective Government departments, the SEM Committee approved a Decision Paper confirming the next steps in the project to implement the target model in SEM. This was published on 15th February 2013. The SEM Regulatory Authorities (RAs) now invites tenders for experienced electricity market design consultants to advise the RAs on implementing the requirements of the EU's Electricity Target Model.

Quantity or scope:

It is envisaged that the key outputs will be the following;

Consultation Paper:

It is expected that the Consultation Paper will put forward a number of coherent end to end market design options for the SEM redesign. Each option will be assessed against the SEM high level principles and should be consistent with the decisions in the SEM Committee Decision on Next Steps (SEM-13-009). These options should be sufficiently developed to allow SEM Committee, stakeholders and participants to be in a position to understand how the market will work, differ from SEM, interact with neighbouring markets and consider the impacts on generators, suppliers and consumers, notwithstanding that the detailed design rules will remain to be developed in the detailed design/implementation phase of the project.

Draft Decision Paper:

It is expected that the Draft Decision Paper will consider the responses received to the consultation and on this basis recommend to SEM RAs a sufficiently detailed preferred market design option(s) with associated impacts and costs and benefits as appropriate.

Decision Paper:

The final SEM Committee Decision Paper will take the responses received the Draft decision into consideration and should set out the revised High Level design of the SEM. It is expected that there will be a considerable level of detail on the design of the market in the high level design. The high level design should be clear on how the various market timeframes for trading in revised SEM design will operate. If the final decision is to maintain a capacity remuneration mechanism the high level design of this mechanism should also be outlined. Market power mitigation measures or requirements for same should also be considered. The high level design should be sufficiently detailed and understandable to enable evaluation but the detailed design of rules as happened in the original design of SEM will take place after the high level design document is published.

Timeframe:

Engagement with SEM RAs / TSO / Departments': June 2013

Stakeholder Engagement and paper drafting: June to August 2013

Consultation Paper on High Level Design : September 2013

Consideration of Responses and redrafting of HLD: September 2013 –February 2014

Draft Decision Paper on High Level Design: February 2014

Consideration of Responses and development of final Decision Paper: February – May 2014

Decision Paper on High Level Design: May 2014

Duration: 12 months
Reference number: 011-03-271
Place of performance
Main site or place of performance: Dublin, Dundalk, Belfast.

Legal, economic, financial and technical information
Conditions for participation
Suitability to pursue the professional activity:

All tenderers are required to complete a Declaration of Bona Fides pursuant to Article 45 EU Directive 2001/1/EC (See Appendix B of Request for Tender).

Economic and financial standing:

Please refer to Section 4.1 of the Request for Tender document, available to download from www.etenders.gov.ie, for relevant conditions with respect to Qualification Criteria applicable to this contract.

Technical and professional ability:

Contract execution
Main financing conditions and payment arrangements and/or reference to the relevant provisions governing them:

Tender prices must be submitted in both Euro and Great Britain Pounds. Rates quoted in Euro will be used for the comparison between the applicants.

Tenderers should note that the CER or UR will bear the costs of the consultancy in the proportions: 50% to the CER and 50% to the UR.

All fees and expenses shall have to be invoiced separately to the CER and UR in these proportions.

All invoices issued to the CER will be in Euro and subject to Irish VAT and Withholding Tax.

All invoices issued to UR will be in Sterling and subject to Northern Ireland VAT. The rates quoted in the tender will be the rate used throughout the life of the contract. The CER or UR will not be liable for any exposure resulting from changes in exchange rates.

The liability of the CER and UR for the payment of all fees and expenses shall be severable, not joint and severable. On no account will either the CER or UR be accountable for any fees and expenses incurred by the other.

Legal form to be taken by the group of economic operators to whom the contract is to be awarded:

A grouping, if successful, must contract as a single entity, having joint and severable liability.

Names and professional qualifications of the staff ✅

Procedure
Tender validity period: 160 days
Tender opening date: 2013-05-02 📅
Languages
Language: English 🗣️
Other languages: Ga

Contracting authority
Contact
Contact point: Siobhan Keating

Reference
Identifiers
Reference number attributed by the contracting authority: 011-03-271

Complementary information
Review body
Name: The High Court
Postal address: Chief Registrar, Four Courts, Inns Quay
Postal town: Dublin
Postal code: 7
Country: Ireland 🇮🇪
Internet address: http://www.courts.ie 🌏
Source: OJS 2013/S 060-100563 (2013-03-22)

Contract award notice (2013-10-01)
Object
Notice metadata
Document type: Contract award notice

Procedure
Type of bid: Not applicable

Contracting authority
Identity
Awarding authority name: The Regulatory Authorities c/o Commission for Energy Regulation
Postal address: The Exchange, Belgard Square North, Tallaght
Postal code: 24
Postal town: Dublin

Reference
Dates
Date dispatched: 2013-10-01 📅
Publication date: 2013-10-05 📅
Identifiers
Notice number: 2013/S 194-335114
Refers to notice: 2013/S 60-100563
OJ-S issue: 194
Additional information

Contract No: 1. Lot No: 1. V.4) Information on value of contract. Initial estimated total value of the contract: Currency: EUR Excluding VAT. Total final value of the contract: Currency: EUR Excluding VAT.

Object
Place of performance
Main site or place of performance: Belfast, UK and Dublin, Ireland.

Procedure
Award criteria
Criterion: 1. Understanding of the issues, quality and technical merit of proposals for providing service detailed in Section 2 of the RFT (30)
2. Technical Merit of the Human Resources Proposed (25)
3. Approach to stakeholder engagement and management (10)
4. Knowledge transfer to RA staff (10)
5. Ultimate cost of providing the service (25)

Award of contract
Date of contract conclusion: 2013-09-23 📅
Name: Pöyry Management Consulting (UK) Ltd
Postal address: King Charles House, Park End Street
Postal town: Oxford
Postal code: OX1 1JD
Country: United Kingdom 🇬🇧
Information about tenders
Number of tenders received: 7
Source: OJS 2013/S 194-335114 (2013-10-01)

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