Title I, Article 4 · Commission Regulation (EU) 2017/2195

Contents

Article 4Terms and conditions or methodologies of TSOs#

1.TSOs shall develop the terms and conditions or methodologies required by this Regulation and submit them for approval to the Agency in accordance with Article 5(2), or to the relevant regulatory authorities in accordance with Article 5(3) within the respective deadlines set out in this Regulation. In exceptional circumstances, notably in cases where a deadline cannot be met due to circumstances external to the sphere of TSOs, the deadlines for terms and conditions or methodologies may be prolonged by the Agency in procedures pursuant to Article 5(2), jointly by all relevant regulatory authorities in procedures pursuant to Article 5(3), and by the relevant regulatory authority in procedures pursuant to Article 5(4).

2.Where a proposal for terms and conditions or methodologies pursuant to this Regulation needs to be developed and agreed by more than one TSO, the participating TSOs shall closely cooperate. TSOs, with the assistance of the ENTSO for Electricity, shall regularly inform the relevant regulatory authorities and the Agency about the progress of developing those terms and conditions or methodologies.

3.Where TSOs deciding on proposals for terms and conditions or methodologies listed in Article 5(2) are not able to reach an agreement, they shall decide by qualified majority voting. A qualified majority for proposals listed in Article 5(2) shall require the following majority:

(a)TSOs representing at least 55 % of the Member States; and

(b)TSOs representing Member States comprising at least 65 % of the population of the Union.

A blocking minority for decisions on proposals for terms and conditions or methodologies listed in Article 5(2) shall include TSOs representing at least four Member States, failing of which the qualified majority shall be deemed attained.

4.Where TSOs deciding on proposals for terms and conditions or methodologies listed in Article 5(3) are not able to reach an agreement, and where the regions concerned are composed of more than five Member States, they shall decide by qualified majority voting. A qualified majority for proposals in accordance with Article 5(3) shall require the following majority:

(a)TSOs representing at least 72 % of the Member States concerned; and

(b)TSOs representing Member States comprising at least 65 % of the population of the concerned area.

A blocking minority for decisions on proposals for terms and conditions or methodologies listed in Article 5(3) shall include at least a minimum number of TSOs representing more than 35 % of the population of the participating Member States, plus TSOs representing at least one additional Member State concerned, failing of which the qualified majority shall be deemed attained.

5.TSOs deciding on proposals for terms and conditions or methodologies listed in Article 5(3) in relation to regions composed of five Member States or less shall decide by consensus.

6.For TSO decisions on proposals for terms and conditions or methodologies pursuant to paragraphs 3 and 4, one vote shall be attributed per Member State. If there is more than one TSO in the territory of a Member State, the Member State shall allocate the voting powers among the TSOs.

7.Where TSOs fail to submit an initial or amended proposal for terms and conditions or methodologies to the relevant regulatory authorities or the Agency in accordance with Articles 5 and 6 within the deadlines set out in this Regulation, they shall provide the relevant regulatory authorities and the Agency with the relevant drafts of the proposals for terms and conditions or methodologies and explain why an agreement has not been reached. The Agency, all relevant regulatory authorities jointly, or the relevant regulatory authority shall take the appropriate steps for the adoption of the required terms and conditions or methodologies in accordance with Article 5, for instance by requesting amendments or revising and completing the drafts pursuant to this paragraph, including where no drafts have been submitted, and approve them.

Defined terms · 41

Show every defined term

activation optimisation function
means the function of operating the algorithm applied to optimise the activation of balancing energy bids;
allocated volume
means an energy volume physically injected or withdrawn from the system and attributed to a balance responsible party, for the calculation of the imbalance of that balance responsible party;
balance responsible party
means a market participant or its chosen representative responsible for its imbalances;
balancing
means all actions and processes, on all timelines, through which TSOs ensure, in a continuous way, the maintenance of system frequency within a predefined stability range as set out in Article 127 of Regulation (EU) 2017/1485, and compliance with the amount of reserves needed with respect to the required quality, as set out in Part IV Title V, Title VI and Title VII of Regulation (EU) 2017/1485;
balancing capacity
means a volume of reserve capacity that a balancing service provider has agreed to hold and in respect to which the balancing service provider has agreed to submit bids for a corresponding volume of balancing energy to the TSO for the duration of the contract;
balancing energy
means energy used by TSOs to perform balancing and provided by a balancing service provider;
balancing energy gate closure time
means the point in time when submission or update of a balancing energy bid for a standard product on a common merit order list is no longer permitted;
balancing market
means the entirety of institutional, commercial and operational arrangements that establish market-based management of balancing;
balancing service provider
means a market participant with reserve-providing units or reserve-providing groups able to provide balancing services to TSOs;
balancing services
means balancing energy or balancing capacity, or both;
capacity procurement optimisation function
means the function of operating the algorithm applied for the optimisation of the procurement of balancing capacity for TSOs exchanging balancing capacity.
central dispatching model
means a scheduling and dispatching model where the generation schedules and consumption schedules as well as dispatching of power generating facilities and demand facilities, in reference to dispatchable facilities, are determined by a TSO within the integrated scheduling process;
common merit order list
means a list of balancing energy bids sorted in order of their bid prices, used for the activation of those bids;
connecting TSO
means the TSO that operates the scheduling area in which balancing service providers and balance responsible parties shall be compliant with the terms and conditions related to balancing;
contracting TSO
means the TSO that has contractual arrangements for balancing services with a balancing service provider in another scheduling area;
deactivation period
means the period for ramping from full delivery to a set point, or from full withdrawal back to a set point;
delivery period
means the period of delivery during which the balancing service provider delivers the full requested change of power in-feed to, or the full requested change of withdrawals from the system;
divisibility
means the possibility for a TSO to use only part of the balancing energy bids or balancing capacity bids offered by the balancing service provider, either in terms of power activation or time duration;
exchange of balancing capacity
means the provision of balancing capacity to a TSO in a different scheduling area than the one in which the procured balancing service provider is connected;
exchange of balancing energy
means the activation of balancing energy bids for the delivery of balancing energy to a TSO in a different scheduling area than the one in which the activated balancing service provider is connected;
exchange of balancing services
means either or both exchange of balancing energy and exchange of balancing capacity;
full activation time
means the period between the activation request by the connecting TSO in case of TSO-TSO model or by the contracting TSO in case of TSO-BSP model and the corresponding full delivery of the concerned product;
imbalance
means an energy volume calculated for a balance responsible party and representing the difference between the allocated volume attributed to that balance responsible party and the final position of that balance responsible party, including any imbalance adjustment applied to that balance responsible party, within a given imbalance settlement period;
imbalance adjustment
means an energy volume representing the balancing energy from a balancing service provider and applied by the connecting TSO for an imbalance settlement period to the concerned balance responsible parties, used for the calculation of the imbalance of these balance responsible parties;
imbalance area
means the area in which an imbalance is calculated;
imbalance netting process function
means the role to operate the algorithm applied for operating the imbalance netting process;
imbalance price
means the price, be it positive, zero or negative, in each imbalance settlement period for an imbalance in each direction;
imbalance price area
means the area for the calculation of an imbalance price;
imbalance settlement
means a financial settlement mechanism for charging or paying balance responsible parties for their imbalances;
imbalance settlement period
means the time unit for which balance responsible parties' imbalance is calculated;
integrated scheduling process
means an iterative process that uses at least integrated scheduling process bids that contain commercial data, complex technical data of individual power generating facilities or demand facilities and explicitly includes the start-up characteristics, the latest control area adequacy analysis and the operational security limits as an input to the process;
integrated scheduling process gate closure time
means the point in time when the submission or the update of integrated scheduling process bids is no longer permitted for the given iterations of the integrated scheduling process;
mode of activation
means the mode of activation of balancing energy bids, manual or automatic, depending on whether balancing energy is triggered manually by an operator or automatically in a closed-loop manner;
position
means the declared energy volume of a balance responsible party used for the calculation of its imbalance;
preparation period
means the period between the request by the connecting TSO in case of TSO-TSO model or by the contracting TSO in case of TSO-BSP model and the start of the ramping period;
requesting TSO
means the TSO that requests the delivery of balancing energy.
self-dispatching model
means a scheduling and dispatching model where the generation schedules and consumption schedules as well as dispatching of power generating facilities and demand facilities are determined by the scheduling agents of those facilities;
specific product
means a product different from a standard product;
standard product
means a harmonised balancing product defined by all TSOs for the exchange of balancing services;
transfer of balancing capacity
means a transfer of balancing capacity from the initially contracted balancing service provider to another balancing service provider;
validity period
means the period when the balancing energy bid offered by the balancing service provider can be activated, where all the characteristics of the product are respected.