Planned changes in the balancing and system use agreements
To help to facilitate the opening of the Baltic Balancing market on the 1st of January 2018 AS “Augstsprieguma tīkls” (AST) has submitted a proposal to Public Utility Regulator of Latvia for amendments in Public Utilities Regulator’s Decision No 1/14, 26th of June 2013 (hereinafter – amendments in Grid Codex). It is expected that the amendments in Grid Codex shall come in force on the 1st of January 2018.
The amendments in Grid Codex foresee principal changes in the system balancing regulation, including clearly defined roles of three separate agreements: Balancing agreement, Balancing service agreement, System use agreement.
Following the example of other transmission system operators and respecting that the electricity market will continue to grow and develop, the structure of the aforementioned agreements is chosen to ease the administrative burden of reflecting the changes in the market and regulatory framework in the legal relationships. For this purpose, for the Balancing agreement and Balancing service agreement AST has developed standard terms and conditions which are an integral part of the agreement.
Agreements and standard terms and conditions:
Link to the document (in Latvian)
|Balancing agreement & Balancing agreement standard terms and conditions||AST and Balance responsible party||
Provision of balancing services to the balance responsible party
Provision of rights to balance responsible party to provide balancing service to other electricity traders.
|System use agreement||AST and all electricity traders in Latvia (including those who have signed the Balancing agreement).||
Information exchange between transmission system operator and electricity trader.
Provision of balancing service during period when the electricity trader does not have avalid balancing agreement or balancing service agreement.
|Balancing service agreement & Balancing service agreement standard terms and conditions||
Provision of balancing services to a market participant (producer, consumer, trader)
AST invites all electricity market participants to review the standard terms and conditions and to provide feedback and suggestions before 11th of December 2017.
The signing of the new agreements will be organized after the amendments in Grid Codex are approved.
In case of inquiries regarding the new agreement templates we kindly ask to contact Valentīns Lavrinovičs (e-mail: email@example.com, tel. +371 67725363).
Detailed information regarding the opening of Baltic balancing market can be found below.
Baltic TSOs launch a common Baltic balancing market from 2018
With the approval of the Baltic Energy Market Interconnection Plan (BEMIP) in 2009, the Baltic countries agreed to work jointly towards opening, liberalizing and harmonizing electricity market as well as creation of a common balancing market and harmonized imbalance settlement and imbalance pricing. ENTSO-E, following the requirements set in Regulation 714/2009 concerning common rules for the internal market in electricity, has developed the Commission Regulation (EU) 2017/2195 of 23 November 2017 establishing a guideline on electricity balancing which, foresees different requirements and activities supporting the objective to develop a more efficient regional cooperation which shall result in a single integrated European electricity balancing market.
As the first step towards this ambitious goal, the Baltic TSOs (Elering AS, AS “Augstsprieguma tīkls” and LITGRID AB), based on previously made studies and continuous work, have agreed to cooperate in coordinated balancing area and will launch a common Baltic balancing market starting from the 1st January 2018. The objective of the common Baltic balancing market is to establish the same rules and principles for all balancing related activities while stimulating competition and, at the same time, paving the way towards equal treatment of each market participant regardless of the country it operates or resides in, therefore facilitating the overall cost-efficiency and leading to higher consumer welfare.
In order to achieve the level playing field for the participants of the Baltic balancing market, and to fulfil the requirements of the guideline on electricity balancing, the Baltic TSOs have agreed on harmonized Baltic balancing market rules for balance service providers and imbalance settlement for balance responsible parties. The detailed information regarding the Baltic balancing market framework and imbalance settlement principles can be found in the attached documents, which are public annexes of Baltic TSOs’ Agreement on the operation and settlement of the Baltic coordinated balancing area:
- Baltic balancing market rules
- Baltic CoBA imbalance settlement rules
- Used definitions and abbreviations
The Baltic TSOs would like to inform that Baltic national regulatory authorities have expressed support to the implementation of the common Baltic balancing market. However due to relevant upcoming amendments in national laws and regulations, and different public consultation processes in each Baltic State, the attached documents are subject of the final approval and might be adjusted during December 2017 as a result of the national implementation processes.
Transmission system operators proposals on hedging opportunities on the Latvian-Lithuanian Bidding Zone Border according to the commission Regulation no 2016/1719 on forward capacity allocation (FCA guideline) Article 30(5b)
Lithuanian, Latvian, Swedish and Polish National Regulatory Authorities (NRAs) this year bilaterally agreed on cross-zonal risk hedging opportunities on Lithuanian – Latvian (LT-LV), Lithuanian – Sweden (LT-SE4) and Lithuanian – Polish (LT-PL) bidding zone borders. The respective NRAs requested TSOs (LITGRID AB, Affärsverket Svenska kraftnät, Augstsprieguma tīkls AS) not to issue long-term transmission rights (LTTR), but to make sure that other long-term cross-zonal hedging products are made available to support the functioning of the wholesale electricity markets.
Lithuanian, Latvian, Swedish TSOs in coordination with Polish TSOs upon the request of NRA’s, prepared proposals on hedging possibilities on Lithuanian cross-borders and provided them to the the Lithuanian, Latvian, Swedish National Regulatory Authorities for approval.
Today there is a financial market connecting to the Nordic- Baltic electricity wholesale market with high liquidity in the spot price, providing good possibilities to have full hedge in all Nordic - Baltic bidding zones. Existing Nordic - Baltic hedging options together with existing Polish Financial Instrument Market with Physical Delivery provides means for hedging of trades on relevant Lithuanian cross-borders.
Considering legal framework and existing hedging options within Baltic – Nordic regions and Poland, TSOs are of the opinion that hedging of cross-border electricity trading may be based on the currently available options: Nasdaq OMX offered Nordic system ENO product with EPAD (Riga / Malmo (SE4) / Helsinki) and FTRs on the border Estonia – Latvia and Polish long-term forward electricity market option.
Proposal for way forward
TSOs believe that the most efficient way forward is to focus on existing hedging options and continue with development of grid and increasing the transmission capacity of congested borders. Considering the lack of legal regulation and interpretation of the current regulatory legal framework TSOs can’t be engaged in facilitation of the functioning financial risk hedging market(s). A more effective means that is in the hands of TSOs is grid development further expansion of cross-border capacities. E.g. LitPol Link project finalization, EE-LV border expansion by building new HVAC line foreseen by 2020.
Accordingly, below are details of the TSOs proposals for other long-term cross-zonal hedging products to support the functioning of wholesale electricity markets based on relevant NRAs decision according to FCA guideline Article 30(5b).
MARI – The First Consultation (Call for Input) - 19 European TSOs Seek Stakeholders’ Feedback
The Manually Activated Reserves Initiative (MARI) project and Augstsprieguma tīkls as a project team member is conducting a first stakeholder consultation about the design of a common European manual frequency restoration reserves (mFRR) platform.
To ensure that remarks and views of the stakeholders are considered in a very early stage, the MARI project members decided to structure the consultation regarding the design of the mFRR platform in two steps:
- First Consultation – Call for Input;
- Second Consultation – mFRR Platform Design.
The first consultation was launched on the ENTSO-E page (https://consultations.entsoe.eu/markets/mari-first-consultation-call-for-input) on 21 November 2017 12:00 and will be closed on 20 December 2017. We encourage all stakeholders and market participants to take part in both consultations, so that the TSOs can consider their views while designing the mFRR platform. Only sufficient participation can ensure that the platform will successfully serve the needs of all relevant parties involved, be it TSOs, balancing service providers (BSP) or other stakeholders.
Baltic Electricity Transmission System Operators’ Public Consultation on “Demand Response through Aggregation – a Harmonized Approach in the Baltic Region”
The Baltic Transmission System Operators (hereafter TSOs) Elering AS, Augstsprieguma tīkls AS and Litgrid AB hold a common public consultation at an early stage and in an open and transparent manner on the “Demand Response through Aggregation – a Harmonized Approach in the Baltic Region”.
Synchronisation of the Baltic States: a first technical study
On Friday 29 September 2017 representatives of 4 TSOs (PSE, Litgrid, AST and Elering) had a meeting in Konstancin-Jeziorna to start the Project of dynamic study identifying technical conditions of the Baltic States’ synchronization with the system of the Continental Europe.
With this meeting the Project has started, and the composition of the Steering Committee and Expert Group was agreed. It is expected that the results will be available by Spring 2018. ENTSO-E representative took part in the meeting and ENTSO-E will be fostering the Project.
Public consultation on the proposal for capacity calculation methodology in the Baltic CCR
Augstsprieguma tīkls AS and the other TSOs of the Baltic Capacity Calculation Region launch a public consultation via ENTSO-E on the proposal for Capacity Calculation Methodology for both the Day-ahead and Intraday timeframes for the Baltic CCR, in accordance with Article 20 of the CACM Regulation.
The consultation is open from 11th of August to 11th of September 2017.
The consultation tool, as well as more information, can be found on the website of ENTSO-E.
Manually Activated Reserves Initiative (MARI) invites to a workshop
The Guideline on Electricity Balancing (GLEB) defines relevant tasks and a timeline for the implementation of an European platform for the exchange of balancing energy from frequency restoration reserves with manual activation (mFRR). Given the importance of an efficient balancing mechanism for an integrated electricity market, 19 TSOs signed a Memorandum of Understanding on April 5th 2017, which outlines the major cornerstones of the cooperation. Shortly after, the project has been officially named MARI (Manually Activated Reserves Initiative). AS “Augstsprieguma tīkls” has joined the MARI project as observer. MARI strives to consider all TSOs tasks and timeline under the scope of the Guideline on Electricity Balancing provisions concerning mFRR and aims to create the mFRR platform, which fulfills all respective provisions of the GLEB.
The MARI parties view the communication with stakeholders and their feedback as essential for achieving the project goal – the development of an user-friendly and liquid platform. As a result, we aim to establish communication with stakeholders already at a very early stage of the project via a stakeholder workshop. This workshop would provide a comprehensive picture about the MARI project, so that stakeholders gain a good understanding about the features of the platform under development.
Consequently, we would like to invite you to this workshop, which will be held on 4 September 2017 at the ENTSO-E premises in Brussels.
Baltic imbalance settlement model adjustments
The Baltic imbalance settlement model, which will come into force on January 1, 2018, has been adjusted in order to be compliant with the current legislation in all three Baltic States, while working on legislative changes to conform to the initially proposed version of the model. It is expected that the initial version of the Baltic imbalance settlement model could come into force after changes in national legislation, but not earlier than January 1, 2019, as agreed by the Baltic Transmission System Operators (TSOs).
As reported, on February 17th, 2017 the Baltic TSOs disclosed their final proposal for the harmonized Baltic imbalance settlement model, which was published and submitted to all relevant Baltic electricity market’s stakeholders.
The Baltic NRAs evaluated the submitted document and drew attention to the fact that although the TSOs efforts for market harmonization are highly appreciated, in order to implement the imbalance settlement design as the TSOs proposed, valid laws and regulations in each Baltic State should be followed.
Because of concerns that the subsequent amendments to local laws, which the TSOs have already pursued, might not get passed duly on time, the Baltic TSOs have opted that rather than risk the postponement of the Baltic harmonized settlement model altogether, changes will be made to some of the aspects of the model so that conflicts with current legislation are avoided.
In effect, this would ensure the timely launch of the Baltic harmonized settlement model on January 1st, 2018. These transitory changes shall remain in effect until the regulatory proceedings for the final model have been successfully completed. Nevertheless, the final model shall not take effect earlier than January 1st, 2019.
Detailed updated Baltic Imbalance Settlement Model document is available on TSOs webpages.
Public consultation on the proposal for fallback procedures for capacity allocation in the Baltic CCR
Augstsprieguma tīkls AS and the other TSOs of the Baltic Capacity Calculation Region launch a public consultation via ENTSO-E on the proposal for fallback procedures for capacity allocation for the Baltic Capacity Calculation Region in the event that the single day-ahead coupling process is unable to produce results, in accordance with Article 44 of the CACM Regulation.
The consultation is open from 5th of April to 5th of May 2017.
The consultation tool, as well as more information, can be found on the website of ENTSOE (https://consultations.entsoe.eu/markets/baltic-ccr-fallback-proposal/).
Pilot for shorter Intraday gate closure time for Latvia and Estonia-Latvia border continues
Nord Pool and AS “Augstsprieguma tikls” since 11 January 2017 for Latvia and Estonia-Latvia border realise pilot with shorter gate closure time (30 minutes prior to delivery hour) for Intraday trading). The pilot is operating is realised together with ongoing pilots in Finland and in Estonia and on the Estlink cables. Initially the pilot was planned till 31 March 2017, but taking into account positive experiences gained by market participants from the pilot, there was made decision that the 30-minute Intraday gate closure pilot will be continued as an interim solution until the XBID trading solution, and possible other related changes, take effect.
In case of further questions market participant may approach Aleksandrs Ļvovs, email address: firstname.lastname@example.org, phone number: +371-67728345.
The Baltic TSOs have agreed on Baltic Harmonised Imbalance Settlement Model
Following the public consultation on the harmonised Baltic imbalance settlement model, the Baltic transmission system operators Elering AS (Elering), AS Augstsprieguma tīkls (AST) and LITGRID AB (Litgrid) (hereinafter – Baltic TSOs) have concluded imbalance settlement model proposal, which shall be adopted within the Baltics at the start of 2018. The model was developed taking into consideration present draft edition on the Guidelines on Electricity Balancing and the feedback received through the public consultation process. The detailed description of the Baltic TSOs conclusive harmonised Baltic imbalance settlement model proposal can be found at Baltic TSOs websites.
Baltic TSOs conducted the public consultation on “Baltic CoBA development elements” which lasted from June 27th until August 15th 2016. The objective of the consultation was to gather feedback from Baltic electricity market participants and stakeholders regarding Baltic mFRR standard product for balancing and Baltic imbalance settlement harmonisation proposed by the Baltic TSOs.
By the 4th quarter of 2017 each TSO will publish the standard terms and conditions for BRPs approved by national regulatory authorities and the new model is planned to become effective from January 1, 2018.
ENTSO-E has issued a draft of the HAR for LTTR for public consultation
ENTSO-E has issued a draft of the HAR for public consultation, in accordance with Article 6 of the FCA Regulation.
Following the entry into force of Commission Regulation (EU) 2016/1719 of 26 September 2016 establishing a Guideline on Forward Capacity Allocation (the FCA Regulation), all TSOs have to deliver a set of Harmonised Allocation Rules (HAR) for long-term transmission rights.
Subject to relevant approval from national regulators, the HAR will apply for forward capacity allocation via FTRs or PTRs, and for allocated long term transmission rights (FTRs or PTRs) with delivery date on 1st of January 2018 or later.
Additionally we would like to draw your attention on Annex 9: Border specific annex for the border Estonia- Latvia, which is included in the public consultation set and available for your feedback through ENTSO-E public consultation process.
Consultation period is from 16.01.2007 till 16.02.2017.
More information is available here: https://consultations.entsoe.eu/markets/fca-har/
Baltic TSOs launch a coordinated exchange of balancing energy
As of November 1st, the transmission system operators (TSOs) of Estonia, Latvia and Lithuania introduce standard manually activated frequency restoration reserves (mFRR) products. Elering, Augstsprieguma tīkls and Litgrid signed the agreement enabling effective exchange of Baltic balancing energy.
In the Baltic countries the standard mFRR products will be used to control power balancing in normal and emergency situations. Until now the Baltic balancing energy market participants provided balancing services under bilateral agreements with their local TSOs. The information about balancing offers was exchanged between the TSOs according to their bilateral agreements, too. From November 1st, all bids of the standard mFRR products will be available for activation by each of the Baltic TSO from a single Baltic common merit order list. When the common balancing market starts fully functioning in 2018, balancing energy procurement shall be optimised for balancing of the whole Baltic area and the cheapest available offers will be selected first.
The principles of the standard mFRR product were introduced to the market participants during a six week public consultation this summer. Their comments were considered by the Baltic TSOs before the agreement was finalised.
The introduction of standard mFRR products and advancing Baltic TSOs balancing cooperation is a big step towards the common Baltic balancing energy market. It will benefit market participants with expanded balancing services market and at the same time foster cross-border competition increasing efficiency and cost-savings and maintaining the high degree operational security of the Baltic power systems. The next goal for the Baltic TSOs is to extend this cooperation with the Nordic TSOs and to integrate balancing of the whole Baltic sea area.
Summary of Baltic TSOs launched public consultation on the Baltic balancing market elements
The Baltic transmission system operators Elering AS, AS “Augstsprieguma tīkls” and “LITGRID” AB launched the public consultation “Baltic CoBA development elements” which lasted from June 27th until August 15th 2016. The objective of the consultation was to gather feedback from interested Baltic electricity market participants and stakeholders about the preliminary view on Baltic imbalance settlement harmonisation and Baltic mFRR standard product for balancing proposed by the Baltic TSOs.
As an outcome from public consultation, each Baltic TSO will publish the standard terms and conditions for BSPs in accordance with national regulations with target to implement the updated Baltic mFRR standard product for balancing starting from 1st of November 2016.
The proposed Baltic harmonised imbalance model will be re-analysed by Baltic TSOs and new solution will be proposed by the end of 2016, taking into account the given feedback, the requirements of GL EB and Nordic market setting. By the 4th quarter of 2017 each TSO shall also publish the standard terms and conditions for BRPs approved by their national regulatory authority and the new model is planned to become effective from January 1, 2018.
Baltic TSOs would like to thank all the stakeholders who responded on invitation to participate in the public consultation. Baltic TSOs has received 15 response letters. The detailed stakeholders feedback and Baltic TSOs responses on the Baltic mFRR standard product with updated Baltic mFRR standard product and on the Baltic harmonised imbalance settlement model can be found below.
Notice on the modification of PTR-L Rules
Hereby, taking into account the article 69 of European Harmonized Allocation Rules (HAR) the Estonian and Latvian Transmission System Operators Elering AS and AS "Augstsprieguma tīkls" inform on the modification of the Annex 16 to the harmonized Allocation Rules for Forward Capacity Allocation Border specific annex for the border Estonia Latvia (Estonia-Latvia border Regional Annex), which are effective starting from 10th of October 2016 and also will be retroactively applicable to all outstanding auction results.
The modification concern Estonia-Latvia border Regional Annex on HAR articles 34(1), 23(1) and 61(1) which cover the credit limit notice to participants and reimbursement in case of Force Major after the day ahead firmness deadline. Modification of the Regional Annex has been approved by national regulatory authorities of Latvia and Estonia.
We would also like to invite market participants to participate at the PTR-Limited auctions for Year -2017 product, which will be held on 21st of September 2016. All information about the terms and conditions (HAR and modified Regional Annex, Auction Specification, Participant Agreement form and Bank Guarantee template) can be found here: http://elering.ee/ptr-limited-auctions-2017/
Provisional PTR-Lmited Auctions Specification 2017
Following the terms of the Article 29 of the “Allocation Rules for Forward Capacity Allocation” and “Annex 16 to the harmonised Allocation Rules for Forward Capacity Allocation - Border specific annex for the border Estonia- Latvia” (jointly called PTR-Limited Rules) the Auction Platform for Estonia-Latvia border long term transmission rights is publishing Provisional Auction Specification for the PTR-Limited 2017 auctions.
Auction Platform currently is working on the premises that PTR-Limited Rules 2016 will apply also for the auctions of the capacities in 2017. But following the draft Guidelines on Forward Capacity Allocation, ENTSO-E has reviewed EU HAR and it is considered that these EU HAR shall be approved by all European National Regulatory Authorities during 2016. When the new EU HAR will be approved Auction office will make respective amendments in the Auction Specification if such will be required.
Baltic TSOs launch a public consultation on the Baltic balancing market elements
On June 27, Estonian, Latvian and Lithuanian electricity transmission system operators (TSO) Elering, Augstsprieguma tīkls and Litgrid launch the first set of documents for a public consultation on the common balancing market model in the Baltic countries. The Baltic electricity markets stakeholders are encouraged to comment on a proposed harmonised Baltic imbalance settlement model and a standard product of the manual frequency restoration reserves for the balancing energy exchange.
Balancing is an organized process that ensures balance in real time between electricity consumption and production in the electricity system. The goal of the Baltic balancing market is to facilitate the competition among market participants and contribute to their equal treatment regardless the country they operate. The same market rules and practices in all three countries will also create more efficient regulatory environment which will ultimately lead to decreasing balancing costs and higher consumer welfare.
The public consultations will continue until 15 August, 2016. Three Baltic TSOs will review and consider received comments which will serve as the base for development of the further rules for the common Baltic balancing market.
The new balancing market model is based on the forthcoming European Union guidelines on the electricity balancing energy and will take effect from January 1, 2018. The harmonisation of the Baltic balancing market rules and practices is implemented in small steps. All three countries have already reduced the cost of balancing by starting to aggregate the imbalances of the energy systems together in 2015. The Baltic Energy Market Interconnection Plan foresees further Baltics integration with Nordic balancing market.
The public consultation documents can be found on each Baltic TSOs website:
Baltic Balance harmonisation
The Baltic TSOs plan to launch a common Baltic balancing market by 2018. As a prerequisite, the Baltic countries must harmonize and adopt a common set of imbalance settlement arrangements beforehand. The goal is to develop unified, transparent conditions to all market participants which should in effect level the playing field for all market participants throughout the Baltics, foster competition and thus enhance the Baltic electricity market’s efficiency.
In August 2015, Elering procured a balance management harmonisation study from consultancy service provider Pöyry Management Consulting to carry out an in-depth analysis on a harmonised balance management model most suitable for the Baltic balance system. The study, titled "Baltic's balance management model study and harmonisation plan towards EU energy markets model" delves into different balance model aspects, describing possible alternatives in terms such as the number of balance portfolios, the cost structure for covering balance service, and different pricing methodologies for imbalance energy etc. The study was prepared in close collaboration with all three Baltic TSOs (Elering, Augstsprieguma tīkls and Litgrid) during 08.2015 – 04.2016.
As a next step, the Baltic TSOs will compile a joint public consultation document on the balance model harmonisation, which in turn will be forwarded to the balance providers. After evaluating the feedback on the public consultation document, the Baltic TSOs shall make the decision on the Baltic harmonised balance model by the end of the year. The rules however will come in to effect in the beginning of 2018.
According to the BEMIP (Baltic Energy Market Integration Plan), one of the most important steps of the Baltic-Nordic electricity market integration is the establishment of a common balancing power market with harmonised balancing principles and pricing rules. It is essential that the new rules and principles are in accordance with the requirements set forth by the ENTSO-E Network Code on Electricity Balancing, and in addition, be compatible with the model applied by the Nordics.
The integration of the two balancing markets is scheduled for 2020.
We are glad to inform that the Estonian and Latvian Transmission System Operators Elering AS and AS "Augstsprieguma tīkls" have agreed on replacing the PTR-Limited Rules for year 2016 auctions with European Harmonized Allocation Rules (HAR) and Estonian-Latvian border Regional Annex. Both documents are approved by national regulatory authorities. 2016 capacity shall be offered, issued and sold by Auction Platform at the Monthly, Quarterly and Yearly Auctions. The Preliminary Auction Specification which is available at auction platform webpage at http://elering.ee/ptr-limited-auctions-2016/ shall be confirmed upon approval of the Rules “Terms, Conditions and Methodologies on Cross-Zonal Capacity Calculation, Provision and Allocation within the Baltic States and with the 3rd Countries” Baltic National Regulatory Authorities (the Rules are signed by AS “Augstsprieguma tīkls”, Elering AS and LITGRID AB on the 14th of September 2015 and on 15th September, 2015 submitted to Baltic National Regulatory Authorities), provided that there are no significant modifications in BRELL Loop maintenance draft plans affecting grid topology for Estonian- Latvian border in the year 2016 (expected approval of the BRELL maintenance final plans by BRELL participants is planned by early November 2015). (link to UMM).
Hereby we would like to invite you to participate at the PTR-Limited auctions for 2016 capacity.
As the terms and conditions of PTR-limited auctions were changed for the year 2016, all Participants (including those who were registered on PTR-Limited 2015 auctions) wishing to participate in the Auctions for year 2016 should register with the Auction Platform by submitting to the Auction Platform duly completed Participant Agreement signed by the authorized representative of the Participant together with all required documents. Two original signed copies or digitally signed copy of the Participant Agreement should be sent to Auction Platform at least 7 working days before the start of the first auction where the Participants intend to participate.
In addition, a collateral must be provided to the Auction Platform to enable the Participant take part in the auctions. The Collateral in the form of bank guarantee or cash deposit should be submitted to the Auction Platform at least 2 working days before the start of the particular auction.
All information about the terms and conditions (HAR and Regional Annex), Auction Specification, Participant Agreement form and Bank Guarantee template can be found here: http://elering.ee/ptr-limited-auctions-2016/ .
Baltic TSOs – AS „Augstsprieguma tīkls”, AS Elering and AB Litgrid on August 7th completed Public consultation regarding the "Terms, Conditions and Methodologies on Cross-Zonal Capacity Calculation, Provision and Allocation within the Baltic States and with the 3rd Countries” (hereinafter –Rules). The Rules will apply for capacity calculation and allocation within Baltic States and with 3rd Countries, subject to relevant NRA(s) approval.
The Rules for PTR Limited Will Change from the Beginning of Next Year. Following the development of European electricity network codes Estonian and Latvian electricity transmission system operators Elering and Augstsprieguma tīkls reviewed PTR-Limited Rules. The new reviewed Rules will be applicable starting from 2016. PTR-Limited Rules will be replaced with European Harmonised Allocation Rules (EU HAR) and for the case of Estonian-Latvian cross-border will have respective Estonian-Latvian border Regional Annex. Both documents as a set are a subject of approval of national regulatory authorities.
Within the framework of an ongoing early implementation project of the Network Code on Forward Capacity Allocation ENTSO-E has drafted and issued EU HAR. The EU HAR with its Regional Annexes (including Estonian-Latvian border Annex) will apply for allocated long term transmission rights, which has delivery date starting from 1st of January 2016 or a later date.
The HAR on one hand is promoting the development of liquid and competitive forward markets in a coordinated manner across Europe, and on other hand providing market participants with the ability to hedge their risk associated with cross-border electricity trading.
Both, the EU HAR and Regional Annex, passed the public consultation in March 2015 and now, after detailed analyse of market participant’s comments, transmission system operators have finalized the documents. Elering and Augstsprieguma tīkls sent on 13th of July the set of rules to Estonia and Latvia national regulatory authorities for approval.
The information on EU HAR can be found at ENTSO-E webpage at https://www.entsoe.eu/major-projects/network-code-implementation/Harmonisation-of-Allocation-Rules/Pages/default.aspx.
The EU HAR, Regional Annex and the information on public consultation results, which have been submitted to regulatory authorities, can be found also on Elering´s, Augstsprieguma tīkls and Litgrid's webpages.
Baltic TSOs – AS „Augstsprieguma tīkls”, AS Elering and AB Litgrid would like to draw attention and invite the Baltic Electricity market participants to participate in the Baltic TSOs’ launched Public consultation regarding the "Terms, Conditions and Methodologies on Cross-Zonal Capacity Calculation, Provision and Allocation within the Baltic States and with the 3rd Countries” (hereinafter –Rules). The Rules will apply for capacity calculation and allocation within Baltic States and with 3rd Countries, subject to relevant NRA(s) approval.
Three Baltic electricity transmission system operators, Augstsprieguma tīkls, Elering and Finnish TSO Fingrid, representing the Nordic TSOs, signed the Terms of Reference regarding Baltic-Nordic balancing market development. Following the ToR the common Baltic electricity balancing market shall be created by the end of 2016 as an important step towards the Baltic-Nordic balancing market integration targeted by 2018.