On May 20, the Resolution of May 6, 2021, of the National Markets and Competition Commission, was published in the Official Newsletter of the State (BOE), approving the operating rules of the day-ahead and intraday electricity markets for their adaptation of bid limits to European matching limits.

In this regard, new maximum and minimum bid price limits are established of -500 and 3,000 € / MWh for the daily market and -9,999 and 9,999 € / MWh for the intraday market.

These new bid limits that allow the possibility of negative prices require, in turn, to introduce other changes or considerations:

• The settlement of collections and payments and the valuation of guarantees are adjusted to adapt them to negative prices. Thus, when estimating the maximum payment, not only purchase bids at a positive price, but also sales bids at a negative price will be considered.
• The complex condition of indivisibility is eliminated.
• The fixed and variable terms of the minimum income and maximum payments bid condition are limited to positive values.
• A notice is introduced in those cases in which the bids entered exceed a certain threshold of the bid price to the daily market with values of -150 and 1,500 € / MWh.
• The possibility is enabled for agents to indicate the price of the bids that are entered automatically in the system from open positions of forward contracting units, and from the generic units that intervene in bilateral contracts.
• In those cases, in which a price outside the range of € -150 / MWh to € 1,500 / MWh is obtained at any time in the Portuguese or Spanish price zone, the bid book is opened for all European price zones, allowing agents to voluntarily modify their bids and proceed to a second auction. The modified offers may not exceed the aforementioned range of € -150 / MWh to € 1,500 / MWh.

The revision of the day-ahead and intraday market rules has been motivated by the need to adapt the bid price limits to Regulation (EU) 2019/943, although it also incorporates additional changes compared to the current version, both of a general and specific nature.

You can consult the full legal text at the following link:

https://www.boe.es/diario_boe/txt.php?id=BOE-A-2021-8362