Article 44 General principles

United Kingdom

The settlement processes shall:

(a)

establish adequate economic signals which reflect the imbalance situation;

(b)

ensure that imbalances are settled at a price that reflects the real time value of energy;

(c)

provide incentives to balance responsible parties to be in balance or help the system to restore its balance;

F1(d)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(e)

provide incentives to TSOs to fulfil their obligations pursuant to Article 127, Article 153, Article 157 and Article 160 of Regulation (EU) 2017/1485;

(f)

avoid distorting incentives to balance responsible parties, balancing service providers and TSOs;

(g)

support competition among market participants;

(h)

provide incentives to balancing service providers to offer and deliver balancing services to the connecting TSO;

(i)

ensure the financial neutrality of all TSOs.

F2The regulatory authority shall ensure that all TSOs under its competence do not incur economic gains or losses with regard to the financial outcome of the settlement pursuant to F3Chapters 2 and 4 of this Title, over the regulatory period as defined by F4the regulatory authority, and shall ensure that any positive or negative financial outcome as a result of the settlement pursuant to Chapters 2 and 4 of this Title shall be passed on to network users in accordance with the applicable national rules.

Each TSO may develop a proposal for an additional settlement mechanism separate from the imbalance settlement, to settle the procurement costs of balancing capacity pursuant to Chapter 5 of this Title, administrative costs and other costs related to balancing. The additional settlement mechanism shall apply to balance responsible parties. This should be preferably achieved with the introduction of a shortage pricing function. If TSOs choose another mechanism, they should justify this in the proposal. Such a proposal shall be subject to approval by the F5... regulatory authority.

Each injection or withdrawal into or from a scheduling area of a TSO shall either be settled in accordance with F6... Chapter 4 of Title V.

Annotations

Textual amendments

F1: Art. 44(1)(d) omitted (31.12.2020) by virtue of The Electricity Network Codes and Guidelines (Markets and Trading) (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/532), reg. 1(1), Sch. 2 para. 28(2); 2020 c. 1, Sch. 5 para. 1(1)
F2: Words in Art. 44(2) substituted (31.12.2020) by The Electricity Network Codes and Guidelines (Markets and Trading) (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/532), reg. 1(1), Sch. 2 para. 28(3)(a); 2020 c. 1, Sch. 5 para. 1(1)
F3: Words in Art. 44(2) substituted (31.12.2020) by The Electricity Network Codes and Guidelines (Markets and Trading) (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/532), reg. 1(1), Sch. 2 para. 28(3)(c); 2020 c. 1, Sch. 5 para. 1(1)
F4: Words in Art. 44(2) substituted (31.12.2020) by The Electricity Network Codes and Guidelines (Markets and Trading) (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/532), reg. 1(1), Sch. 2 para. 28(3)(b); 2020 c. 1, Sch. 5 para. 1(1)
F5: Word in Art. 44(3) omitted (31.12.2020) by virtue of The Electricity Network Codes and Guidelines (Markets and Trading) (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/532), reg. 1(1), Sch. 2 para. 28(4); 2020 c. 1, Sch. 5 para. 1(1)
F6: Words in Art. 44(4) omitted (31.12.2020) by virtue of The Electricity Network Codes and Guidelines (Markets and Trading) (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/532), reg. 1(1), Sch. 2 para. 28(5); 2020 c. 1, Sch. 5 para. 1(1)