Day-Ahead Auction

The core activity of EPEX Netherlands (formerly APX Power NL) is the Day-Ahead auction, where trading takes place on one day for the delivery of electricity the next day. Market members submit their orders electronically, after which supply and demand are compared and the market price is calculated for each hour of the following day. Hourly contracts as well as flexible block contracts can be traded.

How does it work?

The development of demand and supply on the EPEX Netherlands spot market is completely determined by market parties themselves. Players are production and distribution companies, large consumers, industrial end-users, brokers and traders. All of these can be active as buyer or supplier. Making bids on the spot market is completely electronically. The bid from buyers and sellers must be made known to EPEX one day in advance. After the closure of the day-ahead bidding, EPEX provides matching and sends the result to the bidders.

Spot Limit Orders

Members can trade hourly instruments, which are traded for each hour of the delivery day. Individual Hourly instruments are traded in Euro/MWh with a precision of two decimals. This is referred to as Spot Limit Orders.

Spot Block Orders

In addition to single hours, Members can trade a freely definable set of consecutive hourly instruments, being subject to a fill-or-kill principle. This is referred to as Spot Block Orders. Spot Block Orders apply to a consecutive number of single hours, where execution is subject to the fulfillment of a Maximum Payment Condition (buy) or a Minimum Income Condition (sell). Profiled Block Orders, where the volume varies over the different hours, are also possible.

Hourly instruments (single or consecutive) are traded in lots of 0.1 MW (100 kW) or a multiple thereof. The hourly instruments are subject to physical delivery of electricity of a constant output on the electricity grid of the Dutch Hub. Therefore, members are required to enter into and maintain a PV contract with TenneT and to make nominations to TenneT under the PV contract. Alternatively, members can designate a third party – being recognised by TenneT as a PV – to make nominations on their behalf.

Trading EPEX Netherlands hourly instruments provides members with the opportunity to achieve a balance of their purchase and/or sale portfolios specific to the precise hour. Furthermore, hourly instruments – traded via Limit Orders and/or through Block Orders – are an effective means to optimise the use of generation facilities.

The minimum price of any Day-Ahead Market instrument is -500 €/MWh and the maximum 3000 €/MWh.

Linked Block Orders

Defined as the execution of (a set of) profile block(s) is subject to the execution of another block. (All other standard execution rules apply). This order type allows the member to consider technical and economic constraints such as start-up costs, fuel costs and consumption trends. Linked Block Orders are limited to a maximum of 5 Linked Families per Member, 3 levels of depth in Linked Families and 7 block orders per Linked Family.

Exclusive Block Orders

Is defined as a set of profile blocks where at most once block will be accepted. (Other standard execution rules apply) Order type allows members to trade a portfolio under different production patterns. Such as for a physical plant offer with a low price for Baseload, Medium price for Peak load and high price for a Super peak, however at most only one of these orders will be completed. Exclusive block orders are limited to maximum of 5 Exclusive Groups per member and 8 Block Orders per Exclusive Group.

The EPEX Netherlands Index

The Day Ahead Market is based on the two-side auction model. On the basis of the submitted orders’ demand and supply are compared on a daily basis. Classification in merit order along with matching, results in a price for every hour for delivery the next day. Based on these results, the EPEX Index is determined on a daily basis. To serve market players, EPEX publishes a time average index for Base Load (all hours), Peak Load (8h00-20h00 GMT +01:00) and Off-Peak Load (20h00-8h00 GMT +01:00). The EPEX Index can be used as a reference price for spot electricity.

Activity Time Line – Spot Market

Mentioned points in time are indicative and not binding for EPEX. Times are subject to changes as soon as the market closing time alters, or if the matching process is postponed.

Time Activity(Time: GMT +01:00)
Day prior to day of operation- Until 12h00 receive bids from Participants
- 12h00 market closure
- Immediately after matching and until 12h42 individual matching results available
- Preliminary Results published at 12:42
- Results are Final at 12:55
- Daily settlement at 16h00
- 13h00 EPEX Netherlands submits spot schedules (E-programs) to TSO
- Between 12h42 - 13h05 the APX Index is published on the website
Every business day- Financial clearing

Under special circumstances, EPEX may re-open the order books of the Day-Ahead Market for a short duration after the Gate Closure Time (12h00). EPEX will notify the market parties before re-opening the order books. For more information, please check the Instrument Specifications of the Day-Ahead Market.

Trading Times

Normally 24 hours can be traded for each day. However there are two exceptions per year due to daylight saving. On the Sunday of the switch from wintertime to summertime, only 23 hours will be open for trading. On the Sunday of the switch from summertime to wintertime an extra hour is added to compensate for the switch.

Public Holidays

Year2017
New Year's Day1 Jan
Good Friday14 April
Easter16-17 April
King's Day27 April
Ascension Day25 May
Whitsun4-5 June
Christmas25-26 December

During the above dates the Customer Service Desk is open from 9am to 3pm.
Any effect on traded products will be communicated separately to members.

Clearing & Settlement

EPEX is the central counterparty to all trades; all contracts are traded anonymously, then cleared and settled on behalf of Members. Contracts on the exchange are fully collateralised, as all Members are required to lodge collateral in the form of Cash or Letter of Credit, in excess of outstanding exposures at all times.

Nomination

All trades are notified to the Dutch Power grid operator TenneT BV on behalf of Members.