CEWR adopted amendments and additions to the Electricity Trading Rules

The Commission for Energy and Water Regulation (CEWR) adopted a decision approving amendments and additions to the Rules for Trading in Electric Energy /RTEE, the Rules/. The goal of the changes is a fairer distribution of the costs of imbalances between commercial participants in the electricity market, which increases the efficiency of the balancing market and contributes to energy supplies at minimum costs, the energy regulator said.

With the changes, a new Methodology for determining prices of balancing energy was adopted, which creates a mechanism for calculating the costs of balancing coordinators of balancing groups in each settlement period, regulation status, imbalance position (surplus/shortage) and direction of payment. The methodology is based on the results of the simulations carried out after the introduction of the 15-minute settlement period, taking into account real data for the period 01.10.2022 - 31.12.2022. The methodology does not allow individual participants to take advantage of the previous shortcomings of the market, deliberately choosing to be short/surplus rather than trying to predict their group's balance as accurately as possible.

In addition to adopting the new Methodology, the changes in RTEE create regulatory prerequisites for operators of closed electricity distribution networks and operators of electrical energy storage facilities to become full market participants. In this way, their equality with the other participants is guaranteed. The relations between the participants of the energy markets and the respective operators of electric networks, as well as with the "Security of the Electric Power System" Fund, are also regulated.

In accordance with the requirements, before the adoption of the changes in the Rules, the Commission publishes on its website and on the Portal for public consultations the draft of the normative act and the report of the working group. At the public discussion held on 08.03.2023, the majority of representatives of the interested parties expressed support in principle for the proposed amendments and defined them as timely and contributing to the proper functioning of the market. According to them, the new Methodology completes an important stage in the reform of the balancing market and introduces the European practices for achieving fairer costs for imbalances and for energy supplies at minimum costs. The Commission pointed out the need for the amendments to be introduced without delay, as maintaining the current situation deforms the market and leads to shortages in the entire energy system, which threatens the energy security of the country.

The decision of the Commission to adopt the amendments and additions to the Rules for Trading in Electric Energy has been sent for promulgation in the State Gazette.