The ERA conducts Portfolio Assessments and Materiality Tests at regular, specified timeframes throughout the year.
Portfolio Assessments assign Facilities to Portfolios based on registration, ownership, or operational control.
In accordance with ESM Rules’ clause 2.16B.4 and this WEM Procedure, Market Participants must declare control of a Facility using the form (below).
Constrained portfolio assessment is based on facilities subject to a binding network constraint during a Rolling Test Window.
Following identification of Portfolios and Constrained portfolios, the ERA conducts a Materiality Test.
Market Participants with Facilities that are part of Material Constrained Portfolios must ensure that they comply with their obligations, including record-keeping obligations on offer price construction.
The process also places an obligation on the ERA to monitor Material Portfolios and Material Constrained Portfolios’ offers into the Real Time Market. However, the ERA’s monitoring and surveillance activities are not confined to Material Portfolios and Material Constrained Portfolios.
The ERA sets out its process to determine Material Portfolios and Material Constrained Portfolios in the WEM Procedure: Portfolio Assessment when completing this work.
Portfolios and Material Portfolios
The ERA identifies each Portfolio operating in the Wholesale Electricity Market (WEM) by 1 October each year and publishes a list on its website specifying the name of each Registered Facility within each identified Portfolio (ESM Rules’ clause 2.16B.1(b)) and identifying each Material Portfolio (ESM Rules’ clause 2.16C.1(c)(i)).
Constrained Portfolios
The ERA identifies Constrained Portfolios and applies a test to determine those Market Participants with Facilities that are part of Material Constrained Portfolios. The ERA publishes this determination after the end of each three-month period (Rolling Test Window) (ESM Rules’ clause 2.16C.2(c)) with each determination replacing the previous.