A brief historic introduction
The development of the EB Regulation started in 2011 when the Agency started developing the Framework Guidelines on Electricity Balancing. These Framework Guidelines were adopted on 18 September 2012.
Among other elements, the Framework Guidelines included provisions for the forthcoming development of the Network Code on Electricity Balancing. The Framework Guidelines were essentially aiming for the integration of national electricity balancing markets through the cross-border exchanges of balancing services.
The core element of the Framework Guidelines were the models for cross-border exchanges of balancing energy that should first emerge in different geographical areas and gradually, i.e. within 6 years be integrated into one European platform where all TSOs would have access to different types of balancing energy while taking into account the transmission capacities available between different areas. To enable the creation of such a market, several requirements need to be implemented such as a common set of rights (in particular in terms of access to the balancing markets and in terms of remuneration) and obligations (in particular in terms of balancing responsibility) for all types of market participants (generation and demand). The Framework Guidelines also asked for more efficient procurement and use of balancing reserves.
The Framework Guidelines on Electricity Balancing also required the standardisation and harmonisation of some key balancing elements such as balancing products, balancing energy pricing and imbalance pricing, which are considered as prerequisites before the markets can be fully integrated. The roles and responsibilities of TSOs, Balancing Service Providers and Balance Responsible Parties also need to be harmonised to a large degree to achieve a level playing field for competition in different Member States.
Based on these Framework Guidelines, ENTSO-E was tasked to develop the Network Code on Electricity Balancing. Subsequently, the draft network code was submitted to the Agency for opinion based on which ENTSO-E revised the network code and resubmitted it to the Agency. Finally, the Agency adopted a recommendation to the European Commission to adopt the Network Code on Electricity Balancing subject to specific amendments proposed by the Agency. Following this recommendation, the European Commission further revised the network code, which was then finally adopted as a Commission guideline in November 2017 and entered into force in December 2017.
The detailed dates and documents of the above actions are presented below:
Action 1: 18 September 2012: The Agency adopts the Framework Guidelines on Electricity Balancing
Action 2: 23 December 2013: ENTSO-E submits the Network Code on Electricity Balancing to the Agency
Action 3: 21 March 2014: The Agency adopts the Opinion on the Network Code on Electricity Balancing
Action 4: 16 September 2014: ENTSO-E submits the revised Network Code on Electricity Balancing to the Agency
Action 5: 20 July 2015: The Agency adopts the Recommendation on the Network Code on Electricity Balancing