Piclo Exchange: Market Specific Terms

Piclo Exchange

Overview

Piclo Exchange is an extension to the existing Piclo 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" 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, or direct introductions by the Piclo team.

The "Transferee" discovers an Agreement through Piclo Exchange by any means, including, but not limited to, viewing a 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 “Clear Price” is the auction clear price of the original Agreement (in £/kW/year).

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 traded 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 "Transaction Fee" is a fee charged by Piclo to the Transferor for the successful transfer of all or part of an Agreement 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 Flex 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. Once registered, submit a prequalification application form per Capacity Market Unit for the relevant Delivery Year on the EMR DB Portal. When your application has been confirmed by EMR, contact us. 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 National Grid ESO 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 the trade has been approved by National Grid ESO in the EMR DB Portal, they must inform Piclo. 
2. Piclo will invoice the Transferor a transaction fee which is the greater of:
   1. 0.75% of the Clear Price, calculated pro rata for the Transfer Period; or
   2. £1,000
3. The fee is payable to Piclo within 30 days of receipt of the invoice.
4. There are no fees or commissions payable by the Transferee. 

Worked Example

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

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