Operation of the pool [electricity market]

The author explains the methodology of the operation of the `pool´ and the commodity type market for electricity in England and Wales. Details of the production of the unconstrained schedule which forms the basis of the pool Purchase Price are explained along with the inputs to the following days generation schedule. This establishes the generation and interconnector requirements to meet the following days demand according to a merit order determined from the price bids from generation companies and interconnected parties. Transmission constraints and interconnector capabilities are taken into account in this schedule and it determines the provisional requirements for each generating unit including transfers across the interconnectors. The author then details the re-scheduling and despatch of both generation and interconnected parties in control timescales explaining the handling of transmission constraints and overall system management including data exchange requirements with external utilities. Operational trends are analysed along with possible future developments of the pooling system and operational use of interconnections with other utilities