The Latvian transmission system operator (TSO) JSC "Augstsprieguma tīkls" has supplemented the terms of the balancing service provision of the Balancing Agreement, setting additional financial guarantee requirements for balancing service providers. From February 13, 2023, the transmission system operator will apply an additional guarantee fee in case the net transaction (buying and selling) obligations of balancing transactions exceed a certain amount.

The changes in the rules have been made based on the increase in electricity prices, which increases the total cash flow, as well as the fact that electricity traders often buy less electricity than necessary on the exchange and buy the missing amount as balancing energy from the TSO. As a result, traders have obligations towards JSC "Augstsprieguma tīkls", which sometimes exceeds the amount of security for the fulfillment of obligations several dozen times - 31 thousand EUR, therefore it was decided to supplement the rules in order to ensure an adequate amount of security for the fulfillment of obligations for all balancing service providers.

The new guarantee fee calculation system will take into account the net one-month obligation of the balancing energy purchase and sale made by the balancing service provider to the transmission system operator in double amount, because in fact the trader can settle with the transmission system operator until the end of the next month. The amount of guarantee obligations will be revised monthly, taking into account the volume of transactions of the last six months, with January 2023 as the first. Such a calculation mechanism has been created so that balancing service providers in January can make a balanced purchase of electricity on the stock exchange with the real need and avoid accumulating obligations towards the transmission system operator and, therefore, also from the need to provide additional security for the fulfillment of obligations. In case that the amount of performance security calculated according to a new scheme will be lower than the minimum security currently in force, the security will not change.