The Electricity and Gas (Internal Markets and Network Codes) (Amendment etc.) (EU Exit) Regulations 2020

2.  For Article 2 (definitions) substitute—

“Article 2 Definitions

In this Regulation—

“active customer” means a final customer, or a group of jointly acting final customers, who consumes or stores electricity generated within its premises located within confined boundaries or, where permitted by the regulatory authority, within other premises, or who sells self-generated electricity or participates in flexibility or energy efficiency schemes, provided that those activities do not constitute its primary commercial or professional activity;

“aggregation” means the function of combining multiple customer loads or generated electricity for sale, purchase or auction in any electricity market;

“ancillary service” means a service necessary for the operation of a transmission or distribution system, including balancing and non-frequency ancillary services, but not including congestion management;

“balance responsible party” means a market participant or its chosen representative responsible for its imbalances in the electricity market;

“balancing” means all actions and processes, in all timelines, through which transmission system operators ensure, in an ongoing manner, maintenance of the system frequency within a predefined stability range and compliance with the amount of reserves needed with respect to the required quality;

“balancing capacity” means a volume of capacity that a balancing service provider has agreed to hold and in respect of which the balancing service provider has agreed to submit bids for a corresponding volume of balancing energy to the transmission system operator for the duration of the contract;

“balancing energy” means energy used by transmission system operators to carry out balancing;

“balancing service provider” means a market participant providing either or both balancing energy and balancing capacity to transmission system operators;

“bidding zone” means the largest geographical area within which market participants are able to exchange energy without capacity allocation;

“capacity allocation” means the attribution of cross-zonal capacity;

“capacity mechanism” means a temporary measure to ensure the achievement of the necessary level of resource adequacy by remunerating resources for their availability, excluding measures relating to ancillary services or congestion management;

“central dispatching model” means a scheduling and dispatching model where the generation schedules and consumption schedules as well as dispatching of power-generating facilities and demand facilities, in reference to dispatchable facilities, are determined by a transmission system operator within an integrated scheduling process;

“the competition authority” means the Competition and Markets Authority;

“congestion” means a situation in which an interconnection linking the Great Britain transmission network with the transmission network of another country or territory cannot accommodate all physical flows resulting from international trade required by market participants, because of a lack of capacity of the interconnectors or the transmission systems concerned;

“control area” means a coherent part of the interconnected system, operated by a single system operator and includes connected physical loads and/or generation units if any;

“countertrading” means a cross-zonal exchange initiated by system operators between two bidding zones to relieve physical congestion;

“cross-zonal capacity” means the capability of the interconnected system to accommodate energy transfer between bidding zones;

“customer” means a wholesale or final customer of electricity;

“delegated operator” means an entity to whom specific tasks or obligations entrusted to a transmission system operator under this Regulation have been delegated by that transmission system operator or have been assigned by the Secretary of State or the regulatory authority;

“demand response” means the change of electricity load by final customers from their normal or current consumption patterns in response to market signals, including in response to time-variable electricity prices or incentive payments, or in response to the acceptance of the final customer’s bid to sell demand reduction or increase at a price in an organised market as defined in point (4) of Article 2 of Commission Implementing Regulation (EU) No 1348/2014, whether alone or through aggregation;

“demonstration project” means a project which demonstrates a technology as a first of its kind in Great Britain and represents a significant innovation that goes well beyond the state of the art;

“distributed generation” means generating installations connected to the distribution system;

“distribution” means the transport of electricity on high-voltage, medium-voltage and low-voltage distribution systems with a view to its delivery to customers but does not include supply;

“distribution system operator” or “DSO” means a person responsible for operating, ensuring the maintenance of and, if necessary, developing the distribution system in a given area and, where applicable, its interconnections with other systems, and for ensuring the long-term ability of the system to meet reasonable demands for the distribution of electricity;

“electricity derivative” means a financial instrument specified in point (5), (6) or (7) of Section C of Annex I to Directive 2014/65/EU of the European Parliament and of the Council, where that instrument relates to electricity;

“electricity markets” means markets for electricity, including over-the-counter markets and electricity exchanges, markets for the trading of energy, capacity, balancing and ancillary services in all timeframes, including forward, day-ahead and intraday markets;

“electricity supply contract” means a contract for the supply of electricity, but does not include electricity derivatives;

“energy efficiency” means the ratio of output of performance, service, goods or energy, to input of energy;

“energy storage” means, in relation to the electricity system, deferring the final use of electricity to a moment later than when it was generated, or the conversion of electrical energy into a form of energy which can be stored, the storing of such energy, and the subsequent reconversion of such energy into electrical energy or use as another energy carrier;

“final customer” means a customer purchasing electricity for the customer’s own use;

“generation” means the production of electricity;

“generation unit” means a single electricity generator belonging to a production unit;

“high-efficiency cogeneration” means cogeneration which meets the criteria laid down in Annex 2 to Directive 2012/27/EU of the European Parliament and of the Council;

“imbalance price” means the price, be it positive, zero or negative, in each imbalance settlement period for an imbalance in each direction;

“imbalance price area” means the area in which an imbalance price is calculated;

“imbalance settlement period” means the time unit for which the imbalance of the balance responsible parties is calculated;

“interconnected system” means a number of transmission and distribution systems linked together by means of one or more interconnectors;

“interconnector” means a transmission line which crosses or spans a border between Great Britain and another country or territory, and which connects the national transmission system of Great Britain with the transmission system of that other country or territory;

“interoperability” means, in the context of smart metering, the ability of two or more energy or communication networks, systems, devices, applications or components to interwork to exchange and use information in order to perform required functions;

“the jurisdiction of Great Britain” has the meaning given in section 4(3F)(a) of the Electricity Act 1989(1);

“market operator” means an entity that provides a service whereby the offers to sell electricity are matched with bids to buy electricity;

“market participant” means a person who buys, sells or generates electricity, who is engaged in aggregation or who is an operator of demand response or energy storage services, including through the placing of orders to trade, in one or more electricity markets, including in balancing energy markets;

“new interconnector” means an interconnector not completed by 4th August 2003;

“non-frequency ancillary service” means a service used by a transmission system operator or distribution system operator for steady state voltage control, fast reactive current injections, inertia for local grid stability, short-circuit current, black start capability and island operation capability;

“power-generating facility” means a facility that converts primary energy into electrical energy and which consists of one or more power-generating modules connected to a network;

“prequalification process” means the process to verify the compliance of a provider of balancing capacity with the requirements set by the transmission system operators;

“priority dispatch” means—

(a)

with regard to the self-dispatch model, the dispatch of power plants on the basis of criteria which are different from the economic order of bids;

(b)

with regard to the central dispatch model, the dispatch of power plants on the basis of criteria which are different from the economic order of bids and from network constraints, giving priority to the dispatch of particular generation technologies;

“producer” means a person generating electricity;

“redispatching” means a measure, including curtailment, that is activated by one or more transmission system operators by altering the generation, load pattern, or both, in order to change physical flows in the electricity system and relieve a physical congestion or otherwise ensure system security;

“the regulatory authority” means the Gas and Electricity Markets Authority;

“renewable energy” means energy from renewable non-fossil fuel sources, namely wind, solar (solar thermal and solar photovoltaic) and geothermal energy, ambient energy, tide, wave and other ocean energy, hydropower, landfill gas, sewage treatment plant gas, and biogas;

“reserve capacity” means the amount of frequency containment reserves, frequency restoration reserves or replacement reserves that needs to be available to the transmission system operator;

“self-dispatch model” means a scheduling and dispatching model where the generation schedules and consumption schedules as well as dispatching of power-generating facilities and demand facilities are determined by the scheduling agents of those facilities;

“small connected system” means any system that had consumption of less than 3,000 GWh in the year 1996, where more than 5% of annual consumption is obtained through interconnection with other systems;

“small enterprise” means an enterprise which employs fewer than 50 persons and whose annual turnover and/or annual balance sheet total does not exceed £9 million;

“small isolated system” means any system that had consumption of less than 3,000 GWh in the year 1996, where less than 5% of annual consumption is obtained through interconnection with other systems;

“smart metering system” means an electronic system that is capable of measuring electricity fed into the grid or electricity consumed from the grid, providing more information than a conventional meter, and that is capable of transmitting and receiving data for information, monitoring and control purposes, using a form of electronic communication;

“specific balancing product” means a balancing product which is not a standard balancing product;

“standard balancing product” means a harmonised balancing product defined by all transmission system operators for the exchange of balancing services;

“structural congestion” means congestion in the transmission system that is capable of being unambiguously defined, is predictable, is geographically stable over time, and frequently reoccurs under normal electricity system conditions;

“supply” means the sale, including the resale, of electricity to customers;

“system user” means a person supplying to, or being supplied by, a transmission or distribution system;

“transmission” means the transport of electricity on the extra high-voltage and high-voltage interconnected system with a view to its delivery to final customers or to distributors, but does not include supply;

“transmission system operator” or “TSO” means a person who is designated as an electricity transmission system operator under section 10H of the Electricity Act 1989(2);

“value of lost load” means an estimation in sterling/MWh, of the maximum electricity price that customers are willing to pay to avoid an outage;

“wholesale customer” means a person who purchases electricity for the purpose of resale inside or outside the system where the person is established.”.

(1)

1989 c. 29. Section 4(3F) was inserted by section 145(3) of the Energy Act 2004 (c. 20).

(2)

Section 10H was inserted by S.I. 2011/2704. Section 10H was amended by S.I. 2019/530.