Implementation of the guideline on electricity balancing
The EB Regulation sets out certain obligations for TSOs, ENTSO-E, DSOs, regulatory authorities and the Agency regarding the development and approval of terms and conditions or methodologies. Articles 4 and 5 describe the process of adoption of these terms and conditions or methodologies submitted by the TSOs, which are divided into three categories: the ones subject to all regulatory authorities' approval, in accordance with Article 5(2), the ones subject to the approval of the regulatory authorities of a concerned region, in accordance with Article 5(3), and the ones subject to the approval of each regulatory authority of each Member State on a case by case basis, in accordance with Article 5(4).
A proposal by TSOs should typically be consulted upon in accordance with Article 10 and according to Article 5(5) submitted to the concerned regulatory authorities and to the Agency and should contain a timescale for implementation and the expected impact on the objectives of the EB Regulation as referred to in Article 3. The implementation timescale shall not be longer than twelve months after the approval by the relevant regulatory authorities, except where all relevant regulatory authorities agree to extend the implementation timescale or where different timescales are stipulated in the EB Regulation. The concerned regulatory authorities should take decisions concerning the proposed terms and conditions or methodologies within six months after receipt of the proposal. Where the regulatory authorities were not able to reach unanimous agreement on the approval of the proposal, they can request an amendment, which gives the TSOs extra two months for amending the proposal and another two months for the regulatory authorities to approve the amended proposal. If, in either case, the regulatory authorities were not able to reach unanimous agreement or upon their joint request, the Agency shall adopt a decision within six months from the referral.
After the adoption of the terms and conditions or methodologies TSOs responsible for developing the respective proposals or regulatory authorities responsible for their adoption, may request amendments of these terms and conditions or methodologies, in accordance with Article 6(3). In that case the proposals for amendment to the terms and conditions or methodologies shall be submitted to consultation and follow the approval procedure as described above.
The core elements
The core elements of the EB Regulation are:
Rules for Balancing Service Providers and Balancing Responsible Parties. The terms and conditions related to balancing defined at national level should provide fair, transparent and non-discriminatory rules for all actors involved in the balancing markets, ensuring adequate and fair competition.
Common European Platforms. The integration of balancing energy markets is facilitated by the establishment of common European platforms that apply common merit order list to ensure cost-efficient activation of balancing energy bids across Europe.
Exchange of balancing capacity and cross-zonal capacity allocation. These rules enable TSOs to jointly procure and use balancing capacity, forming broader cooperation, benefiting from economic reserve providing resources outside their area.
Harmonisation of imbalance settlement. The imbalance settlement is a national mechanism and its harmonisation at European level ensures a consistent application of the rules across member states. This ensures that market participants have the same incentives to deliver energy, increasing the balancing markets' overall efficiency.
Settlement rules between TSOs. The EB Regulation also ensures that all the exchanges between TSOs are settled with common rules, guaranteeing a fair and non-discriminatory approach.