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.