Croatian energy exchange CROPEX informed you that it will introduce second auction in case of unexpected prices on day-ahead market starting from trading day Wednesday 7 December (for delivery day Thursday 8 December).
This will enable CROPEX members to change orders in case of reached minimum or maximum threshold as specified in product specification. During the second auction, any member may enter or re-enter orders for day-ahead market.
Second auction is run in case price threshold is reached at least in one hour in one of the bidding zones (BZ) where second auction can be applied (from 7.12.2022, this will also apply to Croatia).
From 7.12.2022 the price threshold limit will be set on:
High threshold: +2400 euros/MWh
Low threshold: -150 euros/MWh
When the threshold is reached, then the second auction is established. In case of second auction, NEMOs order books are opened which means that market parties are able to update their orders, which have already been entered in the system before. After the closing of the second auction and the start of a new price and volume calculation, in case the price is still above thresholds, the new calculated results will be final.
Please note that the second auction is one of the mechanisms that warns the market about the occurrence of extreme prices, but it does not guarantee that the maximum or minimum price will not be reached in the subsequent calculation.
