Public consultation on a proposal for modification of the tariff for maintaining and restoring the residual balance of individual BRPs

Topic

Elia is organizing a public consultation on a proposal for modification of the tariff for maintaining and restoring the residual balance of individual Balance Responsible Parties (BRPs). This modification aims at urgently re-introducing the prices of the mFRR sharing activations (i.e. Inter-TSO reserve sharing) in the calculation of the imbalance price through the application of an incentivizing component ɑ’.

Context

Since the mFRR technical GO-live organized on 22nd May 2024, the prices defined in bilateral TSO contracts in the framework of mFRR sharing agreements are excluded from the calculation of the imbalance price. This pragmatic approach was proposed in order to avoid having to adapt the imbalance price formula twice in a very short period of time, firstly at the mFRR technical GO-live and then shortly afterwards at the connection to the European platform for the exchange of mFRR energy (MARI). However, due to an insufficient progress of the Interoperability Tests (IOP Tests) with the MARI European Platform (as explained during the Working Group Balancing of 21st May 2024), the connection to MARI had to be postponed by a few months, until after the summer. In this context, it is deemed necessary to re-introduce the prices of the mFRR sharing activations (i.e. Inter-TSO reserve sharing) in the calculation of the imbalance price, in order to ensure an efficient market design before the first connection to the European Balancing Platform.

Besides, considering the high risk of incompressibility situations during the upcoming summer, the re-introduction of these mFRR sharing prices in the imbalance price calculation is deemed urgent. This is the reason why Elia proposed to re-introduce these prices through the application of an incentivizing component ɑ’ that is described in the Tariff Proposal and not, as it was the case before, in the calculation of the Marginal Incremental (resp. Decremental) Prices that are described in the T&C BRP which are subject to a longer regulatory approval process.

The explanatory note provides an overview, an explanation and a justification of the changes brought to the tariff for maintaining and restoring the residual balance of individual BRPs.

Consultation period

Elia invites all stakeholders to submit any comments or feedback they may have on the consulted document via the online form during the consultation period from 7 June 2024 to 21 June 2024.

After the consultation period, Elia will collect all comments and feedback from market participants. Elia will analyse these comments and integrate them into a consultation report which will also include Elia's responses to the feedback received. In addition to the consultation report, Elia will publish the reactions of the market players (in a named manner) on the website, unless it is explicitly stated that the contribution is to be considered confidential. Finally, Elia will submit a final proposal for modification of the tariff for maintaining and restoring the residual balance of individual BRPs to the competent regulatory authorities.

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