Balance responsibility and imbalance

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Balance responsibility

There are three levels of balance responsibility:

  • Only transmission system operator can assume balance responsibility for balance responsible parties.
  • Any balance responsible party can assume balance responsibility for an electricity supplier, a consumer or a producer. All Balance responsible parties have to conclude Balance agreement with the transmission system operator. Read how to become balance responsible party here.
  • Any electricity supplier that has concluded a Balance service agreement (not to be mistaken with Ancillary services agreement) can assume balance responsibility for a consumer or a producer. All electricity suppliers have to conclude System use agreement. Read how to start trading electricity in Latvia here.
Harmonized rules for Baltic Common balancing area

Common Baltic Balancing market started operating on 1st of January 2018. Baltic electricity transmission system operators: Elering AS, AS Augstsprieguma Tīkls and LITGRID AB have jointly developed the following harmonized rules:

Imbalance settlement administration fee

All market participants who receive the balance service from the transmission service operator (both under the Balance agreement and the Balance service agreement) are charged an imbalance settlement administration fee – EUR 355.72 (excluding VAT) per month.

+System use agreement
System use agreement

System use agreement is concluded with all electricity suppliers before they start trading electricity. The agreement includes provisions for the following aspects of cooperation:

  • The procedure of information exchange regarding the consumers and producers to whom the electricity supplier trades electricity and whose electric facilities are connected to the transmission network.
  • Settlement procedure for transmission grid services, other services and mandatory procurement components for those consumers and producers who are connected to the transmission grid and have appointed the electricity supplier to settle with the transmission system operator for the aforementioned services on behalf of the market participant. This includes the procedure of the submission of collateral.
  • The procedure for the irregular balancing service provision to the electricity supplier in a period where the supplier does not have a valid balance agreement or balance service agreement.
Standard agreement template

The documents below have been most recently updated on 01.12.2017.

+Balancing agreement
Balance agreement

Balance agreement is concluded with an electricity supplier wishing to receive the balance service from the transmission system operator, as well as becoming a balance responsible party. The Balance agreement shall be concluded before providing balance service to an electricity supplier. The agreement includes provisions for the following aspects of cooperation:

  • Procedure of provision of the balance service;
  • Obligations of the balance responsible party regarding the provision of the balance service to electricity suppliers;
  • Settlement procedure;
  • Collateral requirements;
  • Procedure for development, approval, and status of standard terms and conditions for the provision of the balance services under the Balance agreement.
Standard terms and conditions for the provision of balance services under the Balance agreement

According to the balance agreement, the terms and conditions for the provision of balance services under the balance agreement are binding to all balance responsible parties. The terms and conditions include provisions for the following aspects of cooperation:

  • General provisions – the objective, definitions of terms used in the agreement and the terms and conditions;
  • Procedure for determining imbalance area;
  • Procedures for the submission of the schedules for electricity consumption, production, and trade;
  • Imbalance settlement;
  • Procedure for the application of settlement administration fee;
  • Terms and conditions in regards to the collateral.
Agreement template and the terms and conditions

The documents below have been most recently updated on 01.12.2017.

+Balance service agreement
Balance service for market participants

Balance service by the transmission system operator is available to any market participant – electricity supplier, producer, consumer.To receive balance service from the transmission system operator (without the right to provide the balancing service to another electricity supplier), the market participant concludes the balance service agreement with the transmission system operator.

Balance service agreement

The balance service agreement is concluded with the electricity market participant wishing to receive the balancing service from the transmission system operator. The agreement includes provisions for the following aspects of cooperation:

  • Procedure of provision of the balance service;
  • Settlement procedure;
  • Collateral requirements;
  • Procedure for development, approval, and status of standard terms and conditions for the provision of the balance services under the Balance service agreement.
Standard terms and conditions for the provision of balance services under the Balance service agreement

According to the balance service agreement, the terms and conditions for the provision of balance services under the balance service agreement are binding to all balance service receivers. The terms and conditions include provisions for the following aspects of cooperation:

  • General provisions – the objective, definitions of terms used in the agreement and the terms and conditions;
  • Procedure for determining imbalance area;
  • Procedures for the submission of the schedules for electricity consumption, production, and trade;
  • Imbalance settlement;
  • Procedure for the application of settlement administration fee;
  • Terms and conditions in regards to the collateral.
Agreement template and the terms and conditions

The documents below have been most recently updated on 01.12.2017.

+Imbalance settlement administration fee

All market participants who receive the balancing service from the transmission service operator (both under the balance agreement and the balance service agreement) are charged an imbalance settlement administration fee – EUR 355.72 exc. VAT per month.

Important:

  • The imbalance settlement administration fee is included in the invoice for the respective billing period.
  • This imbalance settlement administration fee is in effect from 01.01.2018.
  • This imbalance settlement administration fee is defined according to the calculation "Balancing Administration Service" approved by AS Augstsprieguma Tīkls on 19 December 2017.