Irish SEM successfully launched

The new wholesale electricity market that unites the power grids of Northern Ireland and the Republic of Ireland has been successfully launched.

The Single Electricity Market (SEM), the first of its kind in Europe, went live on 1 November. All electricity produced on the island will now be sold into one large “pool”, while supply companies will then buy their power out of this pool – a more efficient and cost effective arrangement than two separate markets, as it is designed to set the cheapest possible price for electricity at all times. No one company will have an undue influence over electricity prices.

The development of the SEM involved close cooperation between the power industries in the North and South. “The single wholesale market introduces a new culture of cooperation in the energy field which will benefit all customers. In this regard, the SEM can be considered to be a unique and important development for the energy sector on the island,” said a joint statement from the head of the regulators in the North and South: Tom Reeves, chairman of the Commission for Energy Regulation (CER) and Iain Osborne, CEO of Northern Ireland Authority for Utility Regulation (NIAUR).

“What all this means for customers is that competition will be enhanced leading to improved choice across the island and an improved price outlook than would otherwise be possible. The integration of the two markets will also improve electricity security of supply,” said the statement.

The two regulators will refer all SEM matters to a joint SEM Committee for decision. The SEM Committee, established under law in both jurisdictions, has been put in place and comprises members of both regulatory authorities as well as two independent members.