Piclo Exchange: Market Specific Terms

Piclo Exchange

Overview

Piclo Exchange is a feature of Piclo’s Marketplace enabling Flexibility Service Providers (FSPs) to trade their contracted flexibility obligations to other qualified FSPs. 

Capacity Market Secondary Trading

The first market available on Piclo Exchange is secondary trading for the Capacity Market (CM) where participants can exchange CM Agreements. The Capacity Market ensures security of electricity supply by providing a payment for reliable sources of capacity. 

Definitions

The "Transferor" (Seller) holds an Agreement under which it is entitled to receive Capacity Payments in return for its commitment to meet its obligations during the relevant Delivery Year and faces penalties if it fails to do so. The Transferor creates a listing for their Agreement on Piclo Exchange, and finds a suitable Transferee by any means, including, but not limited to, visibility of their listing, approving a bid, responding to a requirement listing, or direct introductions by the Piclo team.

The "Transferee" (Buyer) discovers an Agreement through Piclo Exchange by any means, including, but not limited to, viewing a listing, creating a requirement listing, direct introductions by the Piclo team, or marketing communications. They enter into a contract with the Transferor to take on the obligations of the Agreement.

The “Agreement” is the Capacity Agreement Notice (CAN) being transferred.

The “Delivery Year” of a Capacity Agreement runs from 1 October to 30 September. For example, the "2025 Delivery Year" will run from 1 October 2025 to 30 September 2026. 

The “Transfer Period” is the agreed period of time that the Transferee will hold the Agreement. An Agreement can be transferred for all or a specified number of calendar days within a Delivery Year. The minimum period is one day and the maximum period is the entire Delivery Year.

The “Clearing Price” is the auction clearing price of the original Agreement (in £/kW/year).

The “Adjusted Clearing Price” is the Clearing Price adjusted for any UK Consumer Price Index increases, as published by EMRS.  For contracts awarded in a T-1 auction the Adjusted Clearing Price will equal the Clearing Price; for contracts awarded in a T-4 auction for the current or upcoming delivery year the Adjusted Clearing Price is the Clearing Price, multiplied by the CPI multiplier published by EMRS prior to the delivery year (which may still be unknown at the point of trade); for contracts awarded in a T-4 auction for future delivery years is the Clearing Price, multiplied by the CPI multiplier published by EMRS prior to the delivery year plus a nominal CPI multiplier of 1.025 for all remaining years prior to the delivery year.

The “Transferred Contract Value” is the value of the Agreement and is the Adjusted Clearing Price multiplied by the capacity being transferred, and pro-rated (taking into account CM weighting factors) for any Transfer Periods of less than one delivery year.  

The "Transaction Fee" is a fee charged by Piclo to the Transferee for the successful transfer of all or part of an Agreement from a Transferor to a Transferee. The fee is calculated according to the structure outlined in the Fees section, which may be updated from time to time.

Terms of Use

1. By accessing and using Piclo Exchange, you agree to comply with and be bound by these Terms of Use and the Website Terms.
2. Companies must register a Piclo account to use Piclo Exchange. You agree to provide accurate and complete information during registration and to update this information as necessary. You are responsible for maintaining the confidentiality of your account credentials and for all activities that occur under your account.
3. Companies must be granted permission to access Piclo Exchange in order to view, create, edit and bid in secondary trading. To be granted access, the company must first be registered on the EMR DB Portal. We will check your application status and if verified, grant your company access to Piclo Exchange. 
4. The transfer of Agreements on Piclo Exchange is subject to CM rules published on gov.uk and on emrdeliverybody.com
5. Piclo is not responsible for enforcing CM rules, neither are they responsible for any incorrect or misleading data entered on Piclo Exchange listings. Piclo is an independent marketplace which facilitates the trading of Agreements. It is the responsibility of the Transferor and the Transferee to undertake due diligence to ensure all information provided is correct before entering into any contract. 
6. Once a bid has been accepted on Piclo Exchange, and contract terms agreed, it is the responsibility of the Transferor and the Transferee to enter the trade into the EMR DB Portal to formally register it. 
7. Once the trade has been accepted by NESO in the EMR DB Portal, the Transferor and the Transferee must inform Piclo.
8. The Transferor and Transferee acknowledge and accept the obligation to comply with Piclo's Transaction Fee. Failure to comply with this may result in suspension or permanent exclusion from Piclo Exchange.
9. The Transferor reserves the right to accept a bid before the bidding end date, and close the auction at any time. 
10. In the event of a dispute between parties, Piclo may offer a mediation service, but is not responsible for resolving disputes. The Transferor and the Transferee agree to resolve disputes in good faith.
11. Piclo reserves the right to suspend or terminate access to Piclo Exchange at our discretion, without prior notice, for any reason, including but not limited to violations of these Terms of Use.
12. Your use of Piclo Exchange is also governed by our Privacy Policy, which explains how we collect, use, and protect your personal information.
13. Piclo may amend these Terms of Use at any time by posting the amended terms on the platform. Your continued use of the platform constitutes acceptance of the amended terms.

Fees

1. Once the Transferor and the Transferee have received confirmation that the transfer has been approved by NESO in the EMR DB Portal, they must inform Piclo. 
2. Piclo will invoice the Transferee a Transaction Fee which is the greater of:
   1. 0.75% of the Transferred Contract Value; or  
   2. £1,000
3. VAT will be applied to the Transaction Fee at the prevailing rate.
4. Where a transfer has been agreed prior to the publication of the relevant CPI figures, Piclo reserve the right to delay calculating the Transaction Fee until such publication.
5. The Transaction Fee is payable to Piclo within 30 days of receipt of the invoice.
6. There are no fees or commissions payable by the Transferor.

Worked Example

The below is a representative example of how a secondary trade of Capacity Agreements work on Piclo Exchange.

T-1 Auction

T-4 Auction

If you require any additional support, please contact us at exchange@piclo.energy or support@piclo.energy