Commission Regulation (EU) 2017/2196Show full title

CHAPTER IV U.K. MARKET INTERACTIONS

Article 35 U.K. Procedure for suspension of market activities

1. A TSO may temporarily suspend one or more market activities laid down in paragraph 2 where:

(a) the transmission system of the TSO is in blackout state; or

(b) the TSO has exhausted all options provided by the market and the continuation of market activities under the emergency state would deteriorate one or more of the conditions referred to in Article 18(3) of Regulation (EU) 2017/1485; or

(c) the continuation of market activities would decrease significantly the effectiveness of the restoration process to the normal or alert state; or

(d) tools and communication means necessary for the TSOs to facilitate market activities are not available.

2. The following market activities may be suspended pursuant to paragraph 1:

(a) the provision of cross zonal capacity for capacity allocation on the corresponding bidding zone borders for each market time unit where it is expected that the transmission system shall not be restored to the normal or alert state;

(b) the submission by a balancing service provider of balancing capacity and balancing energy bids;

(c) the provision by a balance responsible party of a balanced position at the end of the day-ahead timeframe if required by the terms and conditions related to balancing;

(d) the provision of modifications of the position of balance responsible parties;

(e) the provision of schedules referred to in Article 111(1) and (2) of Regulation (EU) 2017/1485, and

(f) other relevant market activities the suspension of which is deemed necessary to preserve and/or restore the system.

3. In case of suspension of market activities pursuant to paragraph 1, upon request of the TSO, each SGU shall operate, where technically possible, at an active power set-point established by the TSO.

4. When suspending market activities pursuant to paragraph 1, the TSO may fully or partially suspend the operation of its processes impacted by such suspension.

5. When suspending market activities pursuant to paragraph 1, the TSO shall coordinate at least with the following parties:

(a) the TSOs of the capacity calculation regions of which the TSO is a member of;

(b) the TSOs with which the TSO has arrangements for the coordination of balancing;

(c) the ‘NEMO’ and other entities assigned or delegated to execute market functions in accordance with Regulation (EU) 2015/1222 within its control area;

(d) the TSOs of a load-frequency control block of which the TSO is a member of; and

(e) the coordinated capacity calculator of the capacity calculation regions of which the TSO is a member of.

6. In case of suspension of market activities, each TSO shall launch the communication procedure set out in Article 38.

Article 36 U.K. Rules for suspension and restoration of market activities

1. By 18 December 2018, each TSO shall develop a proposal for rules concerning the suspension and restoration of market activities.

2. The TSO shall publish these rules on its website following their approval by the relevant regulatory authority in accordance with Article 37 of Directive 2009/72/EC.

3. The rules for suspension and restoration of market activities shall be compatible to the extent possible with:

(a) the rules on provision of cross zonal capacity within the concerned capacity calculation regions;

(b) the rules for submission by balancing service providers of balancing capacity and balancing energy bids resulting from arrangements with other TSOs for the coordination of balancing;

(c) the rules for provision by balance responsible party of a balanced position at the end of day-ahead timeframe if required by the terms and conditions related to balancing;

(d) rules for provision of modifications of the position of balance responsible parties; and

(e) the rules for provision of schedules referred to in Article 111(1) and (2) of Regulation (EU) 2017/1485.

4. When developing the rules for suspension and restoration of market activities, each TSO shall convert the situations referred to in Article 35(1) into objectively defined parameters taking into account the following factors:

(a) the percentage of load disconnection in the LFC area of the TSO corresponding to:

(i)

the inability of a significant share of balancing responsible parties to maintain their balance; or

(ii)

the necessity for the TSO not to follow the usual balancing processes to perform an efficient re-energisation;

(b) the percentage of generation disconnection in the LFC area of the TSO corresponding to the inability of a significant share of balancing responsible parties to maintain their balance;

(c) the share and geographic distribution of unavailable transmission system elements corresponding to:

(i)

the desynchronisation of a significant part of the LFC area rendering the usual balancing processes counterproductive; or

(ii)

the reduction to zero of cross zonal capacity on a bidding zone border(s);

(d) the inability of the following affected entities to execute their market activities for reason(s) outside their control:

(i)

balance responsible parties;

(ii)

balancing service providers;

(iii)

NEMOs and other entities assigned or delegated to execute market functions pursuant to Regulation (EU) 2015/1222;

(iv)

transmission connected DSOs;

(e) the absence of properly functioning tools and communication means necessary to perform:

(i)

the single day-ahead or intraday coupling or any explicit capacity allocation mechanism; or

(ii)

the frequency restoration process; or

(iii)

the reserve replacement process; or

(iv)

the provision by balance responsible party of a balanced position in day ahead and the provision of change of its position; or

(v)

the provision of schedules referred to in Article 111(1) and (2) of Regulation (EU) 2017/1485.

5. The rules for suspension and restoration of market activities shall define a time delay to be respected for each parameter defined pursuant to paragraph 4, prior to starting the procedure for suspension of market activities.

6. The concerned TSO shall assess in real-time the parameters defined pursuant to paragraph 4, on the basis of the information at its disposal.

7. By 18 December 2020, ENTSO for Electricity shall submit to the Agency a report assessing the level of harmonisation of the rules for suspension and restoration of market activities established by the TSOs and identifying, as appropriate, areas that require harmonisation.

[X1 8. By 18 June 2020 , each TSO shall submit to ENTSO for Electricity the data required to prepare and submit the report in accordance with paragraph 7.]

Editorial Information

X1 Substituted by Corrigendum to Commission Regulation (EU) 2017/2196 of 24 November 2017 establishing a network code on electricity emergency and restoration (Official Journal of the European Union L 312 of 28 November 2017).

Article 37 U.K. Procedure for restoration of market activities

1. The concerned TSO, in coordination with the NEMO(s) active in its control area and with the neighbouring TSOs, shall launch the procedure for the restoration of market activities suspended pursuant to Article 35(1) when:

(a) the situation triggering the suspension has ended and no other situation referred to in Article 35(1) applies; and

(b) the entities referred to in Article 38(2) have been duly informed in advance in accordance with Article 38.

2. The concerned TSO, in coordination with neighbouring TSOs, shall launch the restoration of TSO processes impacted by the suspension of market activities when the conditions of paragraph 1 are fulfilled or before, if necessary to restore market activities.

3. The concerned NEMO(s), in coordination with TSOs and entities referred to in Article 35(5), shall launch the restoration of the relevant single day ahead and/or single intraday coupling processes as soon as the TSO(s) notifies that the TSOs' processes have been restored.

4. When the provision of cross zonal capacity has been suspended and subsequently restored, each concerned TSO shall update the cross zonal capacities for capacity allocation by using, from the following, the most feasible and efficient option for each market time unit:

(a) by using the latest available cross zonal capacities calculated by the coordinated capacity calculator;

(b) by launching the regional capacity calculation processes applicable in accordance with Articles 29 and 30 of Regulation (EU) 2015/1222; or,

(c) by determining, in coordination with TSOs of the capacity calculation region, cross zonal capacities based on the actual physical network conditions.

5. When part of the total coupled area where market activities have been suspended is back to the normal state or alert state, the NEMO(s) of this area shall be entitled to execute a market coupling in a part of the total coupled area, in consultation with the TSOs and entities referred to in Article 35(5), provided that the TSO has restored the capacity calculation process.

6. No later than 30 days after the market activities have been restored, the TSO(s) that suspended and restored market activities shall prepare a report at least in English containing a detailed explanation of the rationale, implementation and impact of the market suspension and a reference to the compliance with the rules for suspension and restoration of market activities and shall submit it to the relevant regulatory authority in accordance with Article 37 of Directive 2009/72/EC, and make it available to the entities referred to in Article 38(2).

7. The regulatory authorities of the Member States or the Agency may issue a recommendation to the concerned TSO(s) to promote good practices and prevent similar incidents in the future.

Article 38 U.K. Communication procedure

1. The rules for suspension and restoration of market activities developed pursuant to Article 36 shall also contain a communication procedure detailing the tasks and actions expected from each party in its different roles during the suspension and restoration of market activities.

2. The communication procedure shall provide that information is sent, simultaneously, to the following entities:

(a) the parties referred to in Article 35(5);

(b) the balance responsible parties;

(c) the balancing service providers;

(d) the transmission connected DSOs; and

(e) the relevant regulatory authority of the concerned Member States in accordance with Article 37 of Directive 2009/72/EC.

3. The communication procedure shall include at least the following steps:

(a) the notification by the TSO that market activities have been suspended in accordance with Article 35;

(b) the notification by the TSO of best estimate for the time and date for transmission system restoration;

(c) the notification by the NEMO and other entities designated to execute market functions according to Regulation (EU) 2015/1222 and to Regulation (EU) 2016/1719 of the suspension of their activities, if any;

(d) the updates by the TSOs on the process for restoration of the transmission system;

(e) the notification by the entities referred to in points (a) to (d) of paragraph 2, that their market tools and communication systems are operational;

(f) the notification by the TSO(s) that the transmission system has been restored back to normal state or alert state;

(g) the notification by the NEMO and other entities assigned or delegated to execute market functions according to Regulation (EU) 2015/1222 of the best estimate for time and date when market activities will be restored; and

(h) the confirmation by the NEMO and other entities assigned or delegated to execute market functions according to Regulation (EU) 2015/1222 that market activities have been restored.

4. All notifications and updates by the TSO(s), the NEMO(s) and other entities assigned or delegated to execute market functions referred to in paragraph 3, shall be published on the websites of those entities. When notification or update on the website is not possible, the entity subject to the obligation to notify, shall inform via email, or via any other available means, at least those parties directly participating in the suspended market activities.

5. Notification pursuant to point (e) of paragraph 3 shall be done via email or via any other available means to the concerned TSO.

Article 39 U.K. Rules for settlement in case of suspension of market activities

1. By 18 December 2018, each TSO shall develop a proposal for rules for imbalance settlement and settlement of balancing capacity and balancing energy which shall be applicable for imbalance settlement periods during which the market activities were suspended. The TSO may propose the same rules it applies for normal operations.

The TSO shall publish these rules on its website following their approval by the relevant regulatory authority in accordance with Article 37 of Directive 2009/72/EC.

A TSO may delegate the TSO's tasks referred to in this Article to one or more third parties, provided that the third party can carry out the respective function at least as effectively as the TSO(s). A Member State or, where applicable, a regulatory authority, may assign the tasks referred to in this Article to one or more third parties, provided that the third party can carry out the respective function at least as effectively as the TSO(s).

2. The rules referred to in paragraph 1 shall address the settlements of TSO's and third parties, where relevant, with balance responsible parties, and balancing services providers.

3. The rules developed in accordance with paragraph 1 shall:

(a) ensure the financial neutrality of each TSO and relevant third party referred to in paragraph 1;

(b) avoid distortions of incentives or counterproductive incentives to balance responsible parties, balance service providers and TSOs;

(c) incentivise balance responsible parties to strive to be balanced or help the system to restore its balance;

(d) avoid any financial penalties imposed on balance responsible parties and balancing service providers due to the execution of the actions requested by the TSO;

(e) discourage TSOs from suspending market activities, unless strictly necessary, and incentivise TSOs to restore the market activities as soon as possible; and

(f) incentivise balance service providers to offer services to the connecting TSO that helps restore the system to normal state.