The physical market

From the outset N2 will operate as a physical power exchange providing platforms for the trading of UK Power contracts. This can be divided into three product areas:

• The Spot Market – A continuous market for ½ hour contracts, 1 hour contracts, 2 hour blocks and 4 hour blocks, Overnight, Block 3+4, Peak, Off-peak, Extended Peak and Base.
• The Prompt Market – A prompt market for physically delivered power providing 4 hour blocks, Overnight, Block 3+4, Peak, Off-peak, Extended Peak and Base, Weekend and Weekly contracts for Peak and Base load. Identical contracts in the Prompt and Spot markets will be moved from the Prompt market to the Spot market at the close of the prompt market (19.00) on Fridays or two days prior to the beginning of the delivery period to avoid overlapping contracts.
• The Day Ahead Auction Market (DAM) - A day-ahead spot market auction for physically delivered power.

Marketplace platforms

The prompt and intraday markets will be run on the CONDICO trading system. The system is a fully web-supported transaction platform providing connectivity through the Internet.

The DAM will run on SAPRI v.2.2. Participants will access the SAPRI system by accessing the SAPRI web application.

Systems features:

• Secure internet access
• Automatic BSC Notification
• Central counterpart clearing