Dynamic response services: revisions to balancing terms and conditions
Decision
- Publication date
- Industry sector
- Transmission Network
Ofgem has decided on the Electricity System Operator’s proposed revisions to the Terms and Conditions related to balancing for the dynamic response services.
Dynamic response products are opt-in services where the Electricity System Operator (ESO) pays Balancing Service Parties to provide balancing capacity. They must act quickly to help maintain system frequency around the target value of 50Hz.
The ESO (now National Energy System Operator) proposed amendments to the terms and conditions on electricity balancing on 30 August 2024.
We’ve decided to approve some and reject other ESO proposals on balancing required by Commission Regulation (EU) 2017/2195’s Article 18 guideline on electricity balancing (the EBGL Regulation).
ESO proposed changes to its Service terms and procurement rules:
- Removal of maximum ramp rate
- Availability description
- State of energy management rules during service delivery
- State of energy rule on submitting sell orders
- Requiring operational metering and operational baselines at all times
- Penalty reform and unit suspension
- Disarming and re-arming instructions outside contracted service periods
- Maximum sell size
- Zero Deadband for non-energy limited assets
- Transfer: pay secondary provider
- Updates to Schedule 3
- Housekeeping changes
We have decided to approve all submissions except 5 'Requiring operational metering and operational baselines at all times' and submission 6 'Penalty Reform and unit suspension'. Our full rationale for this position can be found in the letter.
This confirms that for the approved submissions, the response services procurement rules and service terms as mapped by the ESO form part of the terms and conditions pursuant to Article 18 of the EBGL Regulation.