Clearing of Transaction for Day-Ahead and Intraday Markets


ALPEX is responsible for the Clearing and Settlement of Transaction related to trading of Products on the ALPEX Markets, in its role as Central Counterparty. The Clearing and Settlement Procedures enables the netting of the obligations and claims of the Exchange Members and reduces the credit risk for the ALPEX market as a whole. For counterparty risk management, ALPEX implements an appropriate risk management model. A Clearing Member (General Clearing Members or Direct Clearing Members) is responsible to ALPEX for Clearing purpose as Counterparty.

As a Central Counterparty ALPEX executes the following procedures:

    • Calculation of the quantities of energy purchase and sale and the corresponding financial obligations and claims.
    • Invoicing to Exchange Members
    • Settlement of cash obligations and claims.
    • Counterparty risk management by calculating margins and credit limits as well as managing guarantees and Default Fund
    • Clearing Members Training and Support Services


For the calculation of financial obligations and claims, as well as for the risk management functions, the Clearing Members have created Clearing Accounts in the Clearing System (EMCS). Each Clearing Account corresponds to an Exchange Member. At the end of each business day (Clearing Day) EMCS receives from the ETSS detailed data for all transactions made by the Exchange Members and based on these calculates the obligations and claims per Exchange Member - Clearing Account.
It then informs the Clearing Members and issues the relevant invoices to the Exchange Members.


The cash settlement of obligations and claims is carried out on a daily basis through the Settlement System with the participation of ALPEX, the Clearing Members and the Settlement Bank. For each Clearing Day if an obligation arises for an Exchange Member – Clearing Account, The Settlement Day shall be the working day that follows the day of Clearing of the Transaction. If a claim arises, The Settlement Day shall be the second working day that follows the day of Clearing of the Transaction.


Invoicing for transactions in the ALPEX Markets will be issued by ALPEX based on Decision of Council of Ministers No.203, dated on 07.04.2023 “On the Procedure of the implementation and commencement of applying special regime regarding Albanian Power Exchange”. Invoices are issued by ALPEX for Buy-Transactions of Participants at positive prices but also for Sell-Transactions of Regarding the application of VAT on invoices for ALPEX Markets:
- VAT LAW N0. 92/2014 as amended is stipulated the exemption from value added tax of import and supply of electricity within Albania which is destinated to be traded in ALPEX.
- ALPEX Fees will be charged with VAT of 20%.


Risk Management is an essential function of ALPEX, which requires strict procedures, in accordance with the Clearing and Settlement Procedures for ALPEX Markets. ALPEX mitigates the counterparty risk with the requirement of guarantees, in the form of cash and letters of guarantee and applying appropriate risk management models.
Detailed information on Risk Management for ALPEX Markets can be found here.


ALPEX provides training services to Clearing Members’ employees in the form of seminars and issues the Certificate of Certified Clearer (CCC). Each Clearing Member must have appointed at least one (1) Certified Clearer for the Clearing of the Transactions it undertakes. The terms and conditions that must be met by the candidate, as well as the procedure for certification of Certified Clearer, are described in Technical Decision No. 2-C of ALPEX.


The Clearing and Settlement Procedures is performed every working day from Monday until Friday except the case when a day is holiday in Albania, which can be found here.