Public consultation on the proposal of amendment of the T&C BSP aFRR

Topic

Elia is organizing a public consultation on the proposal of amendment of the T&C BSP aFRR in the context of the cap on the TCO degradation in the aFRR capacity auctions.

Context

During the discussions on the design of the aFRR capacity auctions in 2021, the need to implement a cap on the degradation of the Total Cost Optimization (TCO) had been identified. It has however not been implemented as:

  • It was urgent for market parties to implement the modified aFRR capacity auction design;
  • The need of the cap on the TCO degradation as of the go-live in May 2022 was not demonstrated.

In the meanwhile, the market conditions have evolved. The monitoring of aFRR capacity auctions has shown that the cap on the TCO degradation needs to be implemented.

This proposal of amendment intends to implement this evolution in the aFRR capacity design. It also includes the replacement of the references to the Federal Grid Code by references to the Code of Conduct, which entered into force in October 2022. 

Consultation period

Elia invites all stakeholders to submit any comments and suggestions they may have on the document submitted for consultation.
The consultation period runs from 24 May 2023 to 25 June 2023.

After the consultation period, Elia will collect all comments and feedback from the market parties. Elia will analyse these comments and integrate them into a consultation report together with Elia’s responses. In addition to the consultation report, Elia will publish the reactions of the market parties (including names) on the website, unless it is explicitly stated that the contribution is to be considered confidential.

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