Public consultation on Terms and Conditions for balancing service providers for manual Frequency Restoration Reserve (mFRR)

Topic

In preparation of the implementation of a new design for the mFRR balancing service and in response to the request for amendment of the CREG with respect to the Terms and Conditions for Balancing Service Providers for manual Frequency Restoration Reserve (mFRR) (“T&C BSP mFRR”) submitted by Elia to CREG in June 2018, Elia launches a public consultation on the new version of the T&C BSP mFRR Service.

Context

Elia proposes a new design for the mFRR Service with an entry into force in February 2020. Consequently, Elia adapts its proposal for the T&C BSP mFRR including the contract for the service between Elia and the balancing service providers (BSP).
 
In accordance with article 10 of the Regulation (EU) 2017/2195 of 23 November 2017 establishing a guideline on electricity balancing (“EBGL”), Elia organizes a formal public consultation on a new proposal of the T&C BSP mFRR. The contract between Elia and the BSP reflects the design changes proposed by Elia to evolve to an mFRR Service with daily procurement of mFRR balancing capacity by Elia, a remuneration of energy based on a paid-as-cleared mechanism, and changes in the characteristics of the mFRR Flex product. The T&C structure has also been adapted to integrate into one contract the specific conditions of different products mFRR. All these changes have been proposed and discussed with the market parties during workshops and Working Group Balancing meetings in 2019.
 
Note that the document T&C BSP mFRR includes a section for General Conditions. As valid for all ancillary services these conditions are currently being consulted separately until October 16, 2019, and hence not in scope of this consultation. For more information, visit the consultation webpage.
 
Elia also shares an informative note in support of the consultation explaining the reasons behind the changes. The note provides an overview of the changes in the proposal of the T&C BSP mFRR compared to the version of June 2018 and more explanation on a change in the design for the penalty relating to not offering energy bids in line with the mFRR Obligation.
 
Parallel to this consultation, ELIA organizes a consultation on its proposals for the LFCBOA (including the methodology to determine Elia’s reserve capacity needs on aFRR and mFRR) and the methodology to determine the balancing capacity to be procured in Elia’s LFC block). The two consultations are related as these documents will facilitate a dynamic daily dimensioning of the mFRR needs and mFRR balancing capacity. The relevant articles will enter into force at the same time as the T&C BSP mFRR.

Next week Elia will also launch a public consultation on a new proposal of the Market functioning rules for the compensation of quarter-hourly imbalances (“Balancing Rules”) with the needed and coherent modifications.

 

Period

Elia invites the stakeholders to provide comments and suggestions on the consulted document during the consultation period from Friday 4 October to Monday 4 November 2019.
 

Form

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