Power and Natural Gas Process
Role of ECC and ECC LuxAs a Central Counterparty, ECC assumes the role of a market participant in the grid of the transmission system operators (TSOs). Physical Settlement is provided by ECC Lux which has concluded a balancing area agreement with all major European TSOs.
Nomination & SchedulingIn the French RTE market area and in the natural gas market, single-sided nomination is used. This means ECC is authorised to fulfil the physical nomination on behalf of each trading participant. In all other cases, the trading participant also has to submit a schedule.
ECC nominates the net position in the relevant product to the respective TSO within the timeframe specified.
Prerequisites and ResponsibilitiesTrading participants opting for physical settlement need a balancing area agreement with the relevant TSO. Alternatively, a third-party agreement permitting access to a balancing area can be concluded. For further details, please refer to the section Access to ECC.
From a legal perspective, Clearing Members are not involved in the physical settlement process as delivery is processed by ECC Lux. They act as a payment agent and guarantor.
The TSOs guarantee grid security through balancing of nominated amounts. In case of a mismatch, the special rules of the relevant transmission system operator apply.