The integration of the Kosovo-Albania forward electricity markets is expected to take place soon as the Albanian Energy Exchange has asked the Entity to perform the transfer agent link for which this process is needed.
The unification of the markets is a predetermined objective in the agreement signed between the parties involved such as the Operator of the Transmission System of Albania (OST), that of Kosovo Transmission (KOSTT) and the Albanian Energy Exchange (ALPEX) in 2021. Initially the primary objective was the start of the operation of the Stock Exchange, which took place in April of this year, and now the parties are moving to another stage. But what actually is a transfer agent?
“In the ‘Regulation of requirements and procedures for the determination of the appointed electricity market operator (NEMO) as well as the roles and responsibilities of NEMO and Operators of the Energy Transmission System in the United Market’ approved by the Decision of the Board of ERE no. 40, dated 06.03.2020, provides, among other things, the role of the Transfer Agent (shipping agent) and specifically in Article 2, ‘Definitions’ it is stated that: “Transfer Agent” is a subject/subjects whose task is to transfer net positions between different Central Parties.
The transfer agent (Shipping Agent) can act as a counterparty between different central counterparties for the exchange of electricity, if the interested parties enter into a specific agreement for this purpose” states the letter that ALPEX addresses to the Entity.
The establishment of the role of the transfer agent in a union is decided precisely by this regulator. As a reference for this, ALPEX brings a recommendation of the Board of Regulators of the Energy Community, which the Entity took into account in the drafting of the “Regulation of requirements and procedures for the determination of the appointed operator of the electricity market (NEMO) as well as the roles and responsibilities of NEMO and Energy Transmission System Operators in the United Market”.
“Based on this recommendation, from the experience followed by European countries but also from the fact that ALPEX SHA acts as a Central Counterparty (CP) for the clearing and settlement of the energy exchange resulting from the integration of the day-ahead market, we propose that ERE declares with a decision that the role of the “Transfer Agent”, for the merger of the Albania-Kosovo energy markets, will be performed by ALPEX SHA” is underlined in the letter.
ALPEX started operations in April of this year and currently the transactions carried out are at modest levels. However, the number of members has continued to grow month after month, reaching recently 16./N.Maho.
Source: Monitor
