ENTSOG BAL NC Monitoring Report 2016

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Neutrality mechanism implemented by 1 October 2016
Neutrality provisions partially implemented by 1 October 2016 a) Under discussion
a) In Estonia TSO does nor gain or lose by providing balancing actions, but no separate neutrality charge.
b) The Danish NRA has approved that Energinet.dk does not have to implement the neutrality arrangements, based on 2 main parameters:
1) the balancing economy is close to being balanced and 2) the economy of Energinet.dk is a rest-in-itself economy, and is thereby neutral in itself.
In Sweden it has been reported that the amounts gained or lost due to balancing actions are almost negligible.
Other neutrality mechanism implemented by 1 October 2016b)
3.6 NEUTRALITY (CHAPTER VII OF BAL NC)
46) EE: TSO does nor gain or lose by providing balancing actions, but no separate neutrality charge.
47) DK: The Danish NRA has approved that Energinet.dk does not have to implement the neutrality arrangements, based on 2 main parameters:
1) the balancing economy is close to being balanced and
2) the economy of Energinet.dk is a rest-in-itself economy, and is thereby neutral in itself.
48) SE: The amounts gained or lost due to balancing actions are almost negligible.
49) In case of a daily imbalance > 24 MWh, balancing actions per balance group are triggered by MAM in the name and on behalf of the BGR. No
costs/revenues for the MAM, the BGR pays/receives the market price to/from the VTP. Hourly short imbalanced positions with short Market Area
Position and short Carry forward account will be charged by balancing incentive markup. Finally, a last line of defence for balancing is to curtail
imbalanced balance group, which causes network instability. Those balancing incentive markups generate income, which is accumulated and
used to reduce transmission charges in future periods. As the balancing incentive markups were massively reduced since their introduction, the
effect in total is small. As the MAM did not take measures for physical balancing, the total sum of the balancing incentive markup for 2013–2015
was returned to the network users via lower tariffs.
To ensure that it has neither to bear costs stem-
ming from network users imbalanced positions
nor perverse incentives to intervene or not in the
market, TSO shall be neutral to the charges in
relation to its balancing activities. Any costs or
revenues arising from balancing activities shall
be passed by TSO to network users.
The neutrality provisions must be implemented
by all countries by 1 October 2016.
Map 8 illustrates that 14 countries (BE, DE, ES,
FR, HU, IE, IT, LU, NL, PL, SK, SI, UK-GB and
UK-NI) reported implementing neutrality provi-
sions, while six countries including Estonia (BG,
CZ, EE46), EL, LT and PT) partialy implemented
them. An overview as well as further details on
the partial implementation can be found i
Two countries (DK47), SE48)) responded that
since the TSO balancing economy is close to be-
ing balanced, NRAs have decided not to imple-
ment neutrality provisions. In Austria, another
neutrality mechanism has been implemented49).
a) In Estonia TSO does nor gain
or lose by providing balancing
actions, but no separate neutrality
charge.
b) The Danish NRA has approved
that Energinet.dk does not have
to implement the neutrality
arrangements, based on two main
parameters:
1) the balancing economy is close
to being balanced and
2) the economy of Energinet.dk is
a rest-in-itself economy, and is
thereby neutral in itself.
In Sweden it has been reported
that the amounts gained or lost
due to balancing actions are
almost negligible.
Map 8: Neutrality implementation by 1 October 2016
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