Electricity Balancing Guideline (EB)

Principal objectives and contents

Commission Regulation (EU) 2017/2195 establishing a guideline on electricity balancing entered into force on 18 December 2017. In addition to general rules for balancing energy, the Regulation defines principles for the procurement of balancing capacity, the activation of balancing energy and financial settlement.

A schedule for all planned implementations and upcoming consultations can be found here (in German only).

 

Ongoing consultations

Additional settlement mechanisms

Articles 44 and 55, which govern the settlement of balancing energy and payment of the imbalance price, enter into force on 18 December 2018. After those provisions take effect, it will no longer be possible to apply the current 78/22 cost allocation procedure as set out in Section 69 of the Electricity Industry and Organisation Act (ElWOG), which will lead to changes in payment of the imbalance price and the settlement of balancing energy. In connection with the APG market forum, a transitional model to take effect on 1 January 2019 was developed together with experts. The model does not include any specific legal provisions governing settlement of the cost of the tertiary operating reserve, as the only cost block. Article 44 (3) of the EB guideline provides for an additional settlement mechanism to settle the procurement costs of balancing capacity, among other things. The additional settlement mechanism is separate from the mechanism for settling imbalance costs with the balance responsible parties and is to take the generation and consumption revenue of the balance responsible parties as the basis for calculation. 

The other changes relating to the costs to be borne and the formula for calculating the price of balancing energy can be found in the terms and conditions for balance responsible parties, which were consulted on and submitted by APCS based on allocation of the task to establish a formula for calculating the price of balancing energy via ElWOG.  

The Explanatory Document provides further information and an overview of upcoming changes to the settlement of balancing energy costs (in German only).  In accordance with Article 10 of the Energy Balance guideline, which stipulates a public consultation period of at least one month, the public consultation is open from 19 September 2018 up to and including 19 October 2018. Please insert your comments in the German-language Excel spreadsheet provided.

Consultation document

Deadline

Status

Remarks

Result

 Additional settlement machanisms (in German only)

 19 October 2018

Consulted

 

 

 The formula for calculating the price of balancing energy and additional information on payment of the imbalance price can be found in the terms and conditions for balance responsible parties, which were consulted on and submitted by APCS. The consultation document is available here (in German only).

 

Methodology for classifying activation purposes of balancing energy bids 

Pursuant to Article 29, all EU TSOs must develop a proposal for classifying the activation purposes of balancing energy bids and submit it for approval to all NRAs by 18 December 2018.

In accordance with Article 10, the public consultation is set for a period of two months and will be open from 13 September 2018 up to and including 13 November 2018.

Consultation document

Deadline

Status

Remarks

Result

Activation purposes proposal

13 November 2018

Open

 

Methodology for pricing balancing energy and cross-zonal capacity used in the exchange of balancing energy

Pursuant to Article 30, all EU TSOs must develop proposals for a methodology to determine prices for balancing energy and a methodology to determine prices for cross-zonal capacity used in the exchange of balancing energy and for the secondary reserve replacement process (imbalance netting) and submit them to all NRAs for approval.

In accordance with Article 10, the public consultation is set for a period of two months and will be open from 13 September 2018 up to and including 13 November 2018.

Consultation document

Deadline

Status

Remarks

Result

Pricing proposal

13 November 2018

Open

   

Harmonisation proposal for imbalance settlement

Pursuant to Article 52, all EU TSOs must submit a joint proposal to further specify and harmonise imbalance settlement to the national regulatory authorities by 18 December 2018.

In accordance with Article 10 of the Energy Balancing Regulation, the public consultation is set for a period of two months and will be open from 16 July 2018 up to and including 28 September 2018.

Consultation document

Deadline

Status

Remarks

Result

Imbalance Settlement Harmonization Proposal

28 September 2018

Consulted

  

Exemption pursuant to Article 34 of the Energy Balancing guideline

Pursuant to Article 34, we are requesting an exemption from our obligation as a TSO to allow balancing service providers to transfer their obligations to provide balancing capacity within Austria. We are thus giving expression to our view that the current mechanisms for transferring obligations to provide balancing capacity for the secondary operating reserve should remain intact. Work continues on developing a similar type of mechanism for the tertiary operating reserve.

In accordance with Article 10 of the Energy Balancing Regulation, the public consultation will be open for one month, from 30 May 2018 up to and including 30 June 2018.

Consultation document

Deadline

Status

Remarks

Result

Exemption pursuant to Article 34 of the Energy Balancing Guideline (in German only)

30 June 2018

Consulted

Result (in German only)

  

Automatic frequency restoration reserves (aFRR) implementation framework

Within one year of entry into force of the Energy Balancing Regulation, all TSOs must develop a proposal for the implementation framework for a European platform for the exchange of balancing energy from frequency restoration reserves with automatic activation (aFRR) and submit it to all NRAs. Pursuant to the Energy Balancing Regulation, the implementation framework is part of the public consultation.

Consultation document

Deadline

Status

Remarks

Result

aFRR platform

29 June 2018

Consulted

  

Manual frequency restoration reserves (mFRR) implementation framework

Within one year of entry into force of the Energy Balancing Regulation, all TSOs must develop a proposal for the implementation framework for a European platform for the exchange of balancing energy from frequency restoration reserves with manual activation (mFRR) and submit it to all NRAs. Pursuant to the Energy Balancing Regulation, the implementation framework is part of the public consultation.

Consultation document

Deadline

Status

Remarks

Result

mFRR platform

16 July 2018

Consulted

 

Requirements, terms and conditions and methodologies

  • Terms and conditions for balancing service providers in Austria 

No later than six months after entry into force of the Regulation and for all scheduling areas of a Member State, the TSOs of that Member State must develop a proposal regarding the terms and conditions for balancing service providers and balancing responsible parties and submit it for approval to the national regulatory authorities. APG submitted the terms and conditions for approval in June 2018.

APG proposal (in German only)

   
  • SOR tender conditions

In line with the terms and conditions for the balancing services market, APG had to amend its currently applicable tender conditions as at 12 July 2018 to reflect the changes in the tender conditions for the secondary operating reserve (SOR) pursuant to EIWOG 2010.

Annex 3 (in German only)

 

  • Implementation framework for the European platform for the imbalance netting process 

No later than six months after entry into force of the Energy Balancing Regulation, all TSOs must develop a proposal for the implementation framework for a European platform for the imbalance netting process and submit it to all NRAs.

TSO proposal

 

  • Proposal for joint procurement and exchange of SOR

Where two or more TSOs exchange balancing capacity, they must develop a proposal for the establishment of common and harmonised rules and processes for the exchange and procurement of balancing capacity. Together with the German TSOs, APG has already developed a proposal for the establishment of harmonised rules and processes for the cross-zonal exchange and procurement of secondary operating reserve power in connection with the SOR alliance already in place and submitted the proposal for approval in accordance with the provisions of the Energy Balancing Regulation.

TSO proposal submitted for approval (in German only)

Application for an exemption regarding cross-zonal transfer of the obligation to provide balancing capacity (in German only)

Stakeholder feedback from the consultation (in German only)

Supporting document explaining the cost-benefit analysis performed (in German only)

 

  • Proposal for an exemption relating to cross-zonal transfer of the obligation to provide balancing capacity (in German only)

Within the geographical area in which the procurement of balancing capacity has taken place, TSOs must allow balancing service providers to transfer their obligations to provide balancing capacity. However, TSOs may apply for an exemption from the above rule.

APG proposal submitted for approval (in German only)