Imbalance Prices

The Commission Regulation (EU) 2017/2195 of 23 November 2017 establishing a Guideline on Electricity Balancing is directly applicable in all Member States, specific articles enter into force by 18 December 2018. Article 44 sets out general principles for imbalance settlement, article 55 describes the details of the imbalance settlement price. Therefore, a new imbalance settlement regime will be introduced in Austria as of 1 January 2019.

APG will publish indicative imbalance settlement prices for the APG control area. It has to be mentioned that the published values are based on preliminary data. An update is provided at a later point in time.

Calculation method:

Imbalance settlement prices are calculated for negative imbalances as the maximum of the weighted average price for activated positive balancing energy from frequency restoration reserves (Automatic Frequency Restoration Reserve (aFRR) and Manual Frequency Restoration Reserve (mFRR)) and the wholesale market indicator; and for positive imbalances as the minimum of the the weighted average price for activated negative balancing energy from frequency restoration reserves (Automatic Frequency Restoration Reserve (aFRR) and Manual Frequency Restoration Reserve (mFRR) and the wholesale market indicator.

The wholesale market indicator is calculated based on the intraday price ID3, taking into account a weighted day-ahead price (Market coupling price of EPEX SPOT) in hours when intraday market liquidity does not exceed a defined threshold.

Details can be found in the Terms and Conditions for BRPs of the Balance Group Coordinator APCS here.

Publication Indicative Imbalance Prices

Financial Neutrality of the TSO

According to the Terms and Conditions for BRPs, as they have also been approved by E-Control, all costs of energy components, i.e. costs of aFRR activation, mFRR activation, imbalance netting processes, unintended exchange of energy, and possible penalties and non-remuneration are allocated to the income from imbalance settlement with the BRPs.

In the new imbalance settlement regime, a financial surplus or shortage can occur each month. Article 44 (2) EBGL establishes the responsibility of the regulator to ensure financial neutrality of the TSO. Financial results shall be passed on to network users in accordance with the applicable national rules. As currently there are no existing applicable national rules, the financial results are held at APG until national rules are established by Austrian national law.

APG will publish the financial results from imbalance settlement each month here.

The request for approval of an additional settlement mechanism for mFRR capacity procurement costs can be found here.

Further Information can be found in the Explanatory document.