|Electricity Balancing Network Code transitional arrangements - existing agreements affected|
|Friday, 16 May 2014 14:29|
While negotiating any agreements with electricity transmission system operators it is necessary to take account of provisions of the draft ENTSO-E Network Code on Electricity Balancing.
It is only non-binding draft now - some may say. Never mind...
The work on draft Network Code on Electricity Balancing have been already finalised by the ENTSO-E (see Final draft of the ENTSO-E Network Code on Electricity Balancing of 23 December 2013 - NC EB).
After concluding standard procedures for network codes adoption the NC EB will enter into force, as usually, on the twentieth day following that of its publication in the Official Journal of the European Union.
As follows from the form of the Regulation, NC EB will be binding in its entirety and directly applicable in all EU Member States.
The entry into force of the NC EB will influence on the entire EU Internal Electricity Market arrangements, particularly on Balancing Market participants, Balancing Service Providers (BSPs), Balance Responsible Parties (BRPs) and many others.
What is particularly noteworthy, for rules on the procurement of Balancing Capacity within the Responsibility Area and procurement of Balancing Capacity within the Coordinated Balancing Area (CoBa) as well as Chapter 5 of the NC EB governing balancing settlements (Imbalance Settlement including), the transition period of two years has been envisioned.
During the transition period the requirements of the Network Code on Electricity Balancing will not apply to agreements related to electricity Balancing between transmission system operators (TSOs) or between a TSO and a concerned grid user existing at the date of the entry into force of the NC EB.
NC EB, after the said transition period, will, however, be applicable even to agreements between a TSO and a concerned grid user existing at the date of the NC EB entry into force as well as those concluded during the transition period.
The transition period of two years will start on the day of entry into force of the NC EB.