Message-ID: <19884100.1075848203816.JavaMail.evans@thyme>
Date: Tue, 2 Jan 2001 01:59:00 -0800 (PST)
From: mark.schroeder@enron.com
To: steven.kean@enron.com, mark.frevert@enron.com, michael.brown@enron.com, 
	john.sherriff@enron.com
Subject: Skagerrak/D-G border
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Just to let you know that this is further (and final) fruit of Philip=20
Davies's efforts over the past 18 months.  The 1000 MW of capacity in the=
=20
Skaggerak cable (running between Norway and Denmark) is now available daily=
=20
to Nord Pool, via a transparent auction process.  This is something our=20
traders wanted (Thor Lien and Gregor Baumerich), and is something that Enro=
n=20
should be able to take advantage of, over others, given our activity in bot=
h=20
Nord Pool, and on the Continent.   Philip has been virtually alone for most=
=20
of this time in advocating this, and had only limited support from elsewher=
e=20
in industry and government lately.  A regulatory "win" for Enron,  for thos=
e=20
keeping score.  mcs =20
---------------------- Forwarded by Mark Schroeder/LON/ECT on 02/01/2001=20
09:58 ---------------------------


Philip Davies
02/01/2001 08:57
To: Thorstein Jenssen, Peter Larsen, Thomas van Gilst/LON/ECT@ECT, Gregor=
=20
Baumerich/LON/ECT@ECT, Ulf Ek/LON/ECT@ECT, Heribert Kresse/FRA/ECT@ECT
cc: Paul Hennemeyer/LON/ECT@ECT, Mark Schroeder, Peter Styles/LON/ECT@ECT=
=20

Subject: Skagerrak/D-G border

Confirmation that Skagerrak capacity is available to NP now and that the=20
extra 400 MW on the Danish/German border is available now for allocation=20
through the daily auction.

Peter -the conditional prioritisation for Skagerrak trade looks like an=20
attempt to meet the trade distortion concerns (due to border tariffs=20
affecting Swedish but not Norwegian trade into W. Dk) that you raised.  Doe=
s=20
it satisfactorily do the job?  Thomas, please look into this with Peter.=20

Changes affecting Elspot trade with Denmark
Skagerrak
Nord Pool=01,s Participant Information bulletin no. 31-2000 presented the=
=20
cooperation between Statnett and Eltra aimed at opening the Skagerrak cable=
s=20
(connecting Norway and western Denmark) for power market trade via Nord Poo=
l=01,
s spot market. The Norwegian Parliament has passed a decision that allows f=
or=20
cable capacity to be made available for such purposes, beginning 1 January=
=20
2001. As of that date, the border tariff on power transported via the cable=
s=20
will be set at zero.
Sweden - Denmark
Nord Pool=01,s Participant Information bulletin no. 28-2000 presented Svens=
ka=20
Kraftn,t=01,s proposal to Swedish government recommending the removal of bo=
rder=20
tariffs on electric power trade between Sweden and Denmark beginning 1=20
January 2001. Nord Pool has been informed that the Swedish government will=
=20
not make any decision in this matter before year end 2000.
Denmark - Germany via Eltra - E.ON Netz
The existing transit agreement for power transport via Eltra=01,s transmiss=
ion=20
grid will be removed as of 1 January 2001. With the removal of transit=20
reservations, the capacity available for capacity auctions on the=20
Germany-Denmark border will increase by nearly 400 MW.
In January, this capacity will be distributed through daily auctions (the=
=20
auction for the month of January has been held). The distribution according=
=20
to daily and monthly auctions for the ensuing months is decided by Eltra an=
d=20
E.ON Netz.
Framework for Elspot trade
Based on the above information, the following applies to power trade with=
=20
Denmark, as of 1 January 2001:
The Skagerrak cables are open to trade free of border tariffs.=20
Konti-Skan cables (connecting Sweden and western Denmark) are open to Elspo=
t=20
trade; border tariffs remain as today.=20
The _resund interconnection (Sweden and eastern Denmark) is open, with bord=
er=20
tariffs as today.=20
A =01&ramping=018 factor will be introduced. This means that the maximum co=
mbined=20
change in flow on the Konti-Skan and Skagerrak cables may not exceed 600 MW=
=20
between any two hours.=20
Because power transported via the Skagerrak cables is not subject to border=
=20
tariffs, while border tariffs are levied on the Konti-Skan interconnection,=
=20
Nord Pool will prioritize trade via Skagerrak above Konti-Skan trade, in=20
order to lower costs for Denmark West participants when market prices in=20
Norway and Sweden are identical.
Nord Pool is very pleased that access to the Skagerrak interconnection has=
=20
been made available for all market participants.