APG: Foundations for Development of European Electricity Market
The two regulating zone leaders VERBUND-Austrian Power Grid AG (APG) and Swiss EGL Grid AG (the electricity grid subsidiary of Elektrizitätsgesellschaft Laufenburg AG) have taken an important step towards a more flexible European electricity market.
The introduction of the Multi-Time-Frame-System (MTFS) on May 1, 2003 offers electricity traders the possibility to better calculate their response to the customers’ buying behaviour. The two other Austrian regulating zone leaders Tirag (Tyrol) and VKW UNG (Vorarlberg) and all adjacent German regulating zone leaders RWE, EON and EnBW are already applying the MTFS.
Orders for cross-border electricity supplies, which were previously agreed on an hourly basis, are now placed every 15 minutes. Thus MTFS allows the suppliers better adjustment of the electricity supplies between the regulation zones of Switzerland and Austria to the actual demand.
Due to the previously unfavourable adjustment of the electricity supplies to the actual demand more “compensation energy” was required. Thus the costs for outside suppliers were higher. The MTFS system enlarges the circle of bidders and so reduces the prices for the energy offered. The previously resulting competitive advantages of local suppliers within a regulation zone will be cancelled.