Power NI Energy Power Procurement Business (PPB) is the counter-party to Power Purchase Agreements (PPAs), which were established in 1992 as part of the restructuring and privatisation of the electricity supply industry in Northern Ireland.
PPB purchases both the capacity of the contracted generating units and any electricity generated by those units on terms specified in the agreements.
The Single Electricity Market (SEM) commenced operation on 1 November 2007 and PPB is required, under the terms of both its electricity supply licence and the SEM Trading and Settlement Code, to sell all the electricity generated under the PPAs into this market.
The primary role of PPB is to manage and administer the PPA’s. PPB is also a party to the Trading and Settlement Code (TSC) and acts as an Intermediary in the SEM, by submitting Commercial and Technical Offers into the market for each of the contracted generating units in accordance with various contractual and licence obligations.
PPB also actively participates in the contract market which operates alongside the SEM, providing market participants with the opportunity to manage the risk of price volatility in the spot market. PPB can be required to enter Directed Contracts for Differences on terms specified by the SEM Committee.