Decision to grant NESO a derogation and exemption for mandatory frequency response (MFR)
Decision
- Publication date
- Industry sector
- Distribution Network
- Transmission Network
On 25 September 2024, we received a request from National Grid Electricity System Operator (“NGESO”) for a derogation from the requirements of Article 6(9) of Regulation (EU) 2019/943 (“the ER”), as amended by The Electricity and Gas (Internal Markets and Network Codes) (Amendment etc.) (EU Exit) Regulations 20204 and for an exemption under Article 32(3) of Commission Regulation (EU) 2017/2195 establishing a guideline on electricity balancing (“the EBGL”), as amended by The Electricity Network Codes and Guidelines (Markets and Trading) (Amendment) (EU Exit) Regulations 20196 for the frequency response product Mandatory Frequency Response (“MFR”).
The derogation and exemption would allow the specific product MFR to continue to be procured with upward and downward capacity bundled (ie procured together), at timescales greater than day-ahead and for a contract period longer than one day, but not longer than one month.
This letter explains our rationale behind granting this derogation and exemption, and the necessary next steps.