FASS Credit Management Services

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Background

The contractor will be responsible for credit management related to DASSA secondary trading, including the management of collateral for performance-related payments. They will also need to establish automated interfaces with the FASS Platform to efficiently manage credit exposure and notify EirGrid of any necessary suspensions of market participants due to insufficient collateral. The contractor's role is crucial in maintaining the integrity and operational efficiency of the FASS markets.

What this involves

{'scope': "Third-party credit management services for EirGrid and SONI's FASS markets, covering DASSA secondary trading collateral management and other FASS market credit coverage, with automated system integration and dual EUR/GBP currency capability.", 'timeline': 'Framework: 5 years initial + up to 3 annual extensions. DASSA go-live scheduled May 2027.', 'citations': {'timeline': ['ENQEIR997 - FASS PQQ and Information Memorandum Final Updated.docx:10', 'ENQEIR997 - FASS PQQ and Information Memorandum Final Updated.docx:9'], 'deliverables': ['ENQEIR997 - FASS PQQ and Information Memorandum Final Updated.docx:13'], 'scope_summary': ['ENQEIR997 - FASS PQQ and Information Memorandum Final Updated.docx:9']}, 'deliverables': ['DASSA Secondary Trading market credit collateral management', 'Dynamic credit exposure calculation and collateral call automation', 'Automated system-to-system interfaces with the FASS Platform', 'Fixed collateral management for other FASS market elements (performance payments, resettlement)', 'Market participant suspension notifications to TSOs', 'Operational cost recovery from market participants'], 'scope_summary': 'EirGrid (on behalf of EirGrid and SONI) requires a third-party credit management services provider to assume and manage credit risk for the new Future Arrangements of System Services (FASS) Day Ahead System Services Auction (DASSA) secondary trading market and related FASS markets. The service must operate in EUR and GBP.', 'summary_brief': 'PQQ stage procurement (negotiated procedure). A single-supplier framework (5+3 years) for FASS Credit Management Services. The provider must manage collateral for DASSA secondary trading, handle automated system-to-system interfaces with the FASS Platform, and manage fixed collateral for other FASS market elements. DASSA is scheduled to go live from May 2027.', 'summary_detailed': "EirGrid and SONI are developing Future Arrangements of System Services (FASS) to replace the DS3 system and support Ireland/Northern Ireland's target of 80% renewable energy generation by 2030. The Day Ahead System Services Auction (DASSA) requires fully collateralised markets with credit management by a third party. The winning provider must: calculate and dynamically update credit exposure for each DASSA Secondary Trading market participant; initiate collateral calls automatically; notify TSOs to suspend market participants where collateral is insufficient; manage automated system-to-system interfaces (both to and from the FASS Platform); manage fixed collateral for other FASS markets including performance-related payments and resettlement; and recover operational costs from market participants. The framework runs for an initial 5 years with annual extensions up to 3 more years. The service operates in both EUR and GBP. EirGrid retains the right to abandon the competition at any stage. The procurement is run under Directive 2014/25/EU (utilities) and, in so far as possible, complies with the UK Procurement Act 2023 for SONI."}

Scoring

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