CAM Bundles: potential to become unbundled Bundling: preparing for - - PowerPoint PPT Presentation

CAM Bundles: potential to become unbundled

2

Bundling: preparing for auction TSO B

40

TSO A

Offered in auction

• n PRISMA

Bundled Unbundled

40 40 units unsold primary capacity 40 units surrendered capacity from Shipper 1 (bundled) 40 units surrendered capacity from Shipper 1 (bundled) 40 80

TSO A: available capacity TSO B: available capacity

3

Bundling: results of auction TSO B

40

TSO A

Offered in auction

• n PRISMA

Unbundled

TSO A: capacity following auction TSO B: capacity following auction

30 30

30 units bundled capacity sold

30 units primary capacity sold to Shipper 2 40 units surrendered capacity returned to Shipper 1 30 units surrendered capacity from Shipper 1 reallocated to Shipper 2 10 units unsold primary capacity 10 units surrendered capacity returned to Shipper 1

30 units are now unbundled

4

Bundled capacity may become unbundled

Bundled capacity may become unbundled through different mechanisms

¾ Surrender

¾ Previous example shows different levels of unsold primary capacity. A Shipper surrenders bundled capacity on both sides of the IP but auction results may lead to reallocation of one side of the bundle only ¾ Could also be different Shipper surrendering unbundled capacity earlier than Shipper 1 as reallocation according to timestamps

¾ Buy-back ¾ LT UIOLI ¾ Shipper termination ¾ Others?