We received a request from the Electricity System Operator (“ESO”) for a derogation under Article 6(14) from the requirements of Article 6(4) of Regulation (EU) 2019/943 on the internal market for electricity (recast), as amended by the Electricity and Gas (Internal Markets and Network Codes) (Amendment etc.) (EU Exit) Regulations 2020 (the “Electricity Regulation”) for the reintroduction of its Demand Flexibility Service (“DFS”) product. Specifically, the request from the ESO is in reference to subparagraph 2 of Article 6(4), which requires that Market participants shall be allowed to bid as close to real time as possible, and balancing energy gate closure times shall not be before the intraday cross-zonal gate closure time.
This letter sets out our decision to approve this derogation request in accordance with Article 6(14) of the Electricity Regulation and also outlines the necessary next steps that must be taken.