03.07.2024 16:25:00

OTE, a.s. and the Ministry of Industry and Trade Announce the Introduction of a 15-minute Settlement and Trading Period in the Czech Republic

OTE, a.s. and the Ministry of Industry and Trade Announce the Introduction of a 15-minute Settlement and Trading Period in the Czech RepublicOTE, a.s. (OTE, Marcet Operator) and the Ministry of Industry and Trade ('MPO') are pleased to announce the introduction of a 15-minute settlement and trading period in the Czech Republic from the day of delivery, July 1, 2024. This significant step represents an important milestone in the transition of the energy market and at the same time in strengthening the development of international cross-border trading.

Shortening the settlement and trading period from 60 minutes to 15 minutes brings a number of benefits, including increased flexibility that allows market participants to better respond to changes in supply and demand, which contributes to the optimization of trading strategies, furthermore accurate analysis of electricity consumption and production, and improved integration of renewable sources energy. The introduction of a shortened settlement and trading period is also fully in line with European legislation and standards aimed at harmonizing energy markets across Europe. Along with this change, the market operator innovated market platforms and expanded trading opportunities in the short-term electricity markets it organizes by introducing trading through pan-European intraday auctions. Trading on these platforms makes it possible to develop business strategies and bring additional benefits to end customers on the electricity market in the Czech Republic.

This is one of the biggest changes in the electricity market in the Czech Republic since the beginning of the successful liberalization of the electricity market in 2005, when for the first time the end customer could choose his electricity supplier. The market operator devoted more than three years of intensive work to this important change, when, thanks to the new technical solution and the high expertise of all employees, he managed to successfully implement this change in the key processes of the electric power industry and at the same time provided all the support to the electricity market participants to prepare for this change. This change had similar effects for market participants, who not only had to adjust their systems, but also had to make related adjustments to the data they exchange within the market with the market operator and through its central information system.

Mr. Michal Puchel, Chairman of the Board of Directors of OTE, a.s., stated: "The successful introduction of the 15-minute settlement and trading period is the result not only of our intensive cooperation, but also of the preparations of all parties involved. This step will allow us to respond better to dynamic changes in the market and contribute to greater stability and efficiency of the energy system. We are proud to bring innovations that will have a positive impact on the entire market and end consumers."
"This is another in a series of measures aimed at modernizing our power engineering. Electricity production from renewable energy sources such as solar or wind changes more frequently than we are used to with other
sources. Shortening the billing and trading period responds to this and will enable both market participants and end consumers to respond more effectively to market developments. The measure will therefore give customers the opportunity to reduce their electricity expenses," added Mr. Jozef Síkela, Minister of Industry and Trade.

The market operator would like to thank all market participants for their cooperation and active involvement during the preparation period. Your participation in webinars and workshops and suggestions for upcoming changes were among the key factors in the successful implementation of this project.
After the introduction of the 15-minute settlement and trading period, OTE will continue to provide all necessary support to market participants in their activities on the electricity and gas market.

The press release can be downloaded in PDF format here.