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Electricity Trading

Type of study Bachelor
Language of instruction Czech
Code 410-2316/03
Abbreviation OBEL
Course title Electricity Trading
Credits 4
Coordinating department Department of Electrical Power Engineering
Course coordinator doc. Ing. Petr Krejčí, Ph.D.

Subject syllabus

Lectures:
A) Legislative Establishment Of Liberalization
1) The European Treaty – a foundation of the legislative frame for power engineering
2) Beginnings of liberalization – European legislation in the 90ies, directive 1996/92/EC and regulation 549/1999/EC
3) Liberalization start – 1st EC Evaluation Report
4) Lisbon Summit – objectives of the EU in the field of power engineering, assignment of the 2nd liberalization package and the EC medium-term vision
5) 2nd Energy Package:
a) Directive 2003/54/EC
b) Regulation 1228/2003/EC and 1229/2003/EC
6) Period of the 2nd Energy Package implementation:
a) The implementation stage and market development in individual member countries
b) ITC mechanism and failures of the Guide Lines formation
c) Harmonization of markets or by divergence towards unity
7) 3rd EC Evaluation Report, DG COMP sector research, assignment of the 3rd Energy
Package
8) The Green Book and 3rd EC Energy Package
9) Various liberalization concepts – Scandinavia, Great Britain, Spain

B) Forms Of Liberalization Outside Europe
1) Liberalization development in the USA – California, PGM, Texas, role of FERC
2) Russia – liberalization in Russia and CIS

C) The Czech Legislation
1) Energy Act No. 458/2000 Coll. and its gradual revision of the Market Regulation and the
Energy Regulatory Office decrees
2) Technical rules of an access to electrical networks – MPO decrees
3) Terms of access to PS, the PS Code and PS trade terms
4) Terms of access to DS, the DS Code and DS trade terms
5) OTE trade terms
6) Environment and an effective use of energy (Act 406, KVET)
7) Other acts affecting electricity markets and their impacts – the Commodity Exchange Act, and the MIFID directive implementation – terms of trading of financial instruments -> PXE
8) Overview of the electricity market in the Czech Republic – the strongest actors, marketplaces, products

Exercises:
The system access mode and variation responsibility
Contracts in the electricity market and their appurtenances
a) Electricity wholesale – trading
b) Electricity retail – sale to final consumers
Products in the electricity market and marketplaces
Purchase optimization from the perspective of trade orientation
Sale of electricity to final consumers
Optimization of sale prices and purchase prices – business partners’ portfolio construction
Support services
Accounting of variations – in detail
Portfolio construction and risk management
Derivatives in the electricity market
Distinctions of trading electricity on the stock exchange and in the spot market
Cross-border trade
Trading distinctions in the countries of Central Europe
a) Germany and Austria – contract terms and trading distinctions, marketplaces, access to marketplaces
b) Poland – contract terms and trading distinctions, marketplaces, access to
marketplaces
c) Slovakia – contract terms and trading distinctions, marketplaces, access to
marketplaces
d) Hungary – contract terms and trading distinctions, marketplaces, access to
marketplaces
Broker systems – terms of their use
Information systems to support the electricity trade
PPS and OTE information systems
Load profiles, work with them and optimization of the work with load profiles.

Project:
Electricity trading (buying and selling electricity to customers)

E-learning

Selected study materials are published on the e-learning portal (https://www.vsb.cz/e-vyuka/en).

Literature

1. Samuelson, P. A., Nordhaus, W. D.: Economics. New York. McGraw-Hill 2005.
2. Cole, G. A.: Management - theory and practice. 3. ed. London. DP Publications, 1990.

Advised literature

1. Jobber, D., Lancaster, G.: Selling and Sales Management. 4th ed. PITMAN PUBLISHING 1997.
2. Marsch, W.D.: Economics of Electric Utility Power Generation. Clarendon press, New York 1980.