The National Energy Regulatory Council (NERC) has harmonized the standard terms and conditions of the updated Imbalance purchase and sale agreement, as well as repealed the Description of the procedure for regulating the balancing energy price.
Significant changes have been made to the updated standard terms and conditions of the imbalance sales contract:
• The procedure for calculating the imbalance price has been changed. This price should be paid by the balance responsible party which deviates from the planned consumption or production schedule.
• It stipulates that the operator has the right to suspend market activities in accordance with the NERC-approved Rules for suspension and restoration of market activities and rules for settlement when market activities are suspended. In this context, requirements are laid down for the procedure for imbalance settlements and for the provision of balance schedules when market activities are suspended.
• Detailed requirements for bank guarantees and cash collateral to ensure the fulfillment of assumed obligations.
• The Contract includes standard provisions for the processing of personal data.
• The document implements the decision of the European Union Agency for the Cooperation of Energy Regulators (ACER) to harmonize the principles for setting the imbalance charge.
The renewed regime should further incentivise market participants to avoid imbalances and ensure a more consistent and harmonized application of the imbalance settlement rules, while contributing to the efficiency of the electricity system for the benefit of final customers.
For full details of the NERC meeting on 30 November 2021, click here.