ENTSOG Annual Report 2016

Monitoring Reports

Balancing Network Code

SECOND IMPLEMENTATION MONITORING 2016

The Balancing Network Code (Code) entered into force on 16 April 2014. It has been already applicable since 1 October 2015 but allows its application to be postponed until 1 October 2016 if allowed by the national regulatory authority (‘NRA’) following the TSO’s justified request. For those countries which applied for a transitory period, the deadline for full implementation of the Code was 1 October 2016.

Interim measures can be implemented for up to five years  1) from the entry into force of the Code (i. e. until 16 April 2019). Such interim measures would be applied consistent with the options laid down in Chapter X of the Code as well as general principles of the Code, while all the other provi- sions in the BAL NC shall be implemented by 1 October 2015. Both ACER and ENTSOG are required to publish monitoring reports. In its monitoring report, ENTSOG has continued monitoring the implementation of the Code by 1 October 2016, following Article 8(8) of Regulation (EC) No 715/2009. It takes the obligatory (annual) reviews, the implementation deadline by 1 October 2016 for countries applying transito- ry period option as well as the changes due to the on-going implementation of the BAL NC provisions into account. In general, a shift can be observed from the planning to the implementation phase particularly for countries applying in- terim measures and transitory period option. But changes have also been observed in the balancing regimes for coun- tries that implemented the Code in 2015. TSOs were also ob- served to have improved in fulfilling transparency obligations towards network users for better balancing of portfolios. The on-going implementation regarding the provision of in- formation on forecasts, updates and allocations can be no- ticed as several updates or new implementation have been reported by different countries by 1 October 2016. For ex- ample, some countries provide more frequent updates than the minimum foreseen by BAL NC whereas some other countries have still not designated an information model and/or the forecasting party. In all countries the described CBA process on information provisions has not been fulfilled two years after the BAL NC entering into force. In some countries, it is being pro- gressed, in others, it is planned or postponed into the fu- ture. The progress will be further monitored in the next

implementation monitoring report. Nevertheless the imple- mentation or the improvement of information provisions was reported in several countries. Of ten countries (AT, BE/LU, DE, DK, FR, HU, NL, SI and UK-GB) applying the deadline by 1 October 2015, nine of them (AT, BE/LU, DE, DK, FR, NL, SI and UK-GB)  2) stated the implementation of BAL NC. One country (HU) reported having most of the provisions in place by 1 October 2016. Of eleven countries including Estonia (BG, DE, EL, IE, LT, RO, SE, SK and UK-NI) that applied for interim measures until April 2019, eight of them (DE, IE, LT, PL, RO, SE, SK and UK-NI) reported having the interim measures in place. Two respondents (EE* and EL) partially implemented the planned interim measures by 1 October 2016 while one country (BG) is planning to implement the interim measures during 2017. Three respondents (DE, IE, and UK-NI) stated that, except interim measures, all other provisions in place while other eight countries including Estonia (BG, EL, LT, PL, RO, SE and SK) reported having partially implementing them by 1 October 2016. Of five countries (CZ, ES, HR, IT and PT) which applied for the transitory period option until 1 October 2016, Spain and Italy have implemented the BAL NC while three countries (CZ, HR and PT) still have to perform further implementa- tion steps. For these five countries annual reviews will be monitored with the next monitoring report. Balancing implementation is an ongoing process – even following implementation. Due to continuous changes in the market environment, adjustments of the provisions such as imbalance prices might be needed to better achieve the goal of the Code.

1) And additional 5 years for the case of the interim measure of a balancing platform, pursuant to Article 47(3) of the NC.

2) Including some exceptions for three countries (LU, DK and FR).

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ENTSOG Annual Report 2016