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Commission Regulation (EU) 2017/2195Show full title

Commission Regulation (EU) 2017/2195 of 23 November 2017 establishing a guideline on electricity balancing (Text with EEA relevance)

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Article 18U.K.Terms and conditions related to balancing

1.No later than six months after entry into force of this Regulation [F1TSOs] shall develop a proposal regarding:

(a)the terms and conditions for balancing service providers;

(b)the terms and conditions for balance responsible parties.

Where a LFC area consists of two or more TSOs, all TSOs of that LFC area may develop a common proposal subject to the approval by the [F2regulatory authority].

2.The terms and conditions pursuant to paragraph 1 shall also include the rules for suspension and restoration of market activities pursuant to Article 36 of Regulation (EU) 2017/2196 and rules for settlement in case of market suspension pursuant to Article 39 of Regulation (EU) 2017/2196 once approved in accordance with Article 4 of Regulation (EU) 2017/2196.

3.When developing proposals for terms and conditions for balancing service providers and balance responsible parties, each TSO shall:

(a)coordinate with the TSOs and DSOs that may be affected by those terms and conditions;

F3(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c)involve other DSOs and other stakeholders throughout the development of the proposal and take into account their views without prejudice to public consultation pursuant to Article 10.

4.The terms and conditions for balancing service providers shall:

(a)define reasonable and justified requirements for the provisions of balancing services;

(b)allow the aggregation of demand facilities, energy storage facilities and power generating facilities in a scheduling area to offer balancing services subject to conditions referred to in paragraph 5 (c);

(c)allow demand facility owners, third parties and owners of power generating facilities from conventional and renewable energy sources as well as owners of energy storage units to become balancing service providers;

(d)require that each balancing energy bid from a balancing service provider is assigned to one or more balance responsible parties to enable the calculation of an imbalance adjustment pursuant to Article 49.

5.The terms and conditions for balancing service providers shall contain:

(a)the rules for the qualification process to become a balancing service provider pursuant to Article 16;

(b)the rules, requirements and timescales for the procurement and transfer of balancing capacity pursuant to Articles 32 F4... and 34;

(c)the rules and conditions for the aggregation of demand facilities, energy storage facilities and power generating facilities in a scheduling area to become a balancing service provider;

(d)the requirements on data and information to be delivered to the connecting TSO and, where relevant, to the reserve connecting DSO during the prequalification process and operation of the balancing market;

(e)the rules and conditions for the assignment of each balancing energy bid from a balancing service provider to one or more balance responsible parties pursuant to paragraph 4 (d);

(f)the requirements on data and information to be delivered to the connecting TSO and, where relevant, to the reserve connecting DSO to evaluate the provisions of balancing services pursuant to Article 154(1), Article 154(8), Article 158(1)(e), Article 158(4)(b), Article 161(1)(f) and Article 161(4)(b) of Regulation (EU) 2017/1485;

(g)the definition of a location for each [F5balancing] product taking into account paragraph 5 (c);

(h)the rules for the determination of the volume of balancing energy to be settled with the balancing service provider pursuant to Article 45;

(i)the rules for the settlement of balancing service providers defined pursuant to Chapters 2 and 5 of Title V;

(j)a maximum period for the finalisation of the settlement of balancing energy with a balancing service provider in accordance with Article 45, for any given imbalance settlement period;

(k)the consequences in case of non-compliance with the terms and conditions applicable to balancing service providers.

6.The terms and conditions for balance responsible parties shall contain:

(a)the definition of balance responsibility for each connection in a way that avoids any gaps or overlaps in the balance responsibility of different market participants providing services to that connection;

(b)the requirements for becoming a balance responsible party;

(c)the requirement that all balance responsible parties shall be financially responsible for their imbalances, and that the imbalances shall be settled with the connecting TSO;

(d)the requirements on data and information to be delivered to the connecting TSO to calculate the imbalances;

(e)the rules for balance responsible parties to change their schedules prior to and after the intraday energy gate closure time pursuant to [F6paragraph 4] of Article 17;

(f)the rules for the settlement of balance responsible parties defined pursuant to Chapter 4 of Title V;

(g)the delineation of an imbalance area pursuant to Article 54(2) and an imbalance price area;

(h)a maximum period for the finalisation of the settlement of imbalances with balance responsible parties for any given imbalance settlement period pursuant to Article 54;

(i)the consequences in case of non-compliance with the terms and conditions applicable to balance responsible parties;

(j)an obligation for balance responsible parties to submit to the connecting TSO any modifications of the position;

(k)the settlement rules pursuant to Articles 52, 53, 54 and 55;

(l)where existing, the provisions for the exclusion of imbalances from the imbalance settlement when they are associated with the introduction of ramping restrictions for the alleviation of deterministic frequency deviations pursuant to Article 137(4) of Regulation (EU) 2017/1485.

7.Each connecting TSO may include the following elements in the proposal for the terms and conditions for balancing service providers or in the terms and conditions for balance responsible parties:

F7(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)where justified, a requirement for balancing service providers to offer the unused generation capacity or other balancing resources through balancing energy bids F8... in the balancing markets after day ahead market gate closure time, without prejudice to the possibility of balancing service providers to change their balancing energy bids prior to the balancing energy gate closure time F9... due to trading within intraday market;

F10(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(d)specific requirements with regard to the position of balance responsible parties submitted after the day-ahead market timeframe to ensure that the sum of their internal and external commercial trade schedules equals the sum of the physical generation and consumption schedules, taking into account electrical losses compensation, where relevant;

(e)an exemption to publish information on offered prices of balancing energy or balancing capacity bids due to market abuse concerns pursuant to Article 12(4);

(f)an exemption F11... to predetermine the price of the balancing energy bids from a balancing capacity contract pursuant to Article 16(6);

(g)an application for the use of dual pricing for all imbalances [F12containing the information set out in Article 52(2)(d)(i) and (ii)].

F138.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9.Each TSO shall monitor the fulfilment by all parties of the requirements set out in the terms and conditions for balancing within its scheduling area or scheduling areas.

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