Commission Regulation (EU) 2017/2196Show full title

CHAPTER IV U.K. MARKET INTERACTIONS

Article 35 U.K. Procedure for suspension of market activities

1. A TSO may temporarily suspend one or more market activities laid down in paragraph 2 where:

(a) the transmission system of the TSO is in blackout state; or

(b) the TSO has exhausted all options provided by the market and the continuation of market activities under the emergency state would deteriorate one or more of the conditions referred to in Article 18(3) of Regulation (EU) 2017/1485; or

(c) the continuation of market activities would decrease significantly the effectiveness of the restoration process to the normal or alert state; or

(d) tools and communication means necessary for the TSOs to facilitate market activities are not available.

2. The following market activities may be suspended pursuant to paragraph 1:

F1 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) the submission by a balancing service provider of balancing capacity and balancing energy bids;

(c) the provision by a balance responsible party of a balanced position at the end of the day-ahead timeframe if required by the terms and conditions related to balancing;

(d) the provision of modifications of the position of balance responsible parties;

(e) the provision of schedules referred to in Article 111(1) F2 ... of Regulation (EU) 2017/1485, and

(f) other relevant market activities the suspension of which is deemed necessary to preserve and/or restore the system.

3. In case of suspension of market activities pursuant to paragraph 1, upon request of the TSO, each SGU shall operate, where technically possible, at an active power set-point established by the TSO.

4. When suspending market activities pursuant to paragraph 1, the TSO may fully or partially suspend the operation of its processes impacted by such suspension.

5. When suspending market activities pursuant to paragraph 1, the TSO shall coordinate at least with the following parties:

F3 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) the TSOs with which the TSO has arrangements for the coordination of balancing;

F4 (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(d) the TSOs of a load-frequency control block of which the TSO is a member of F5 ...

F5 (e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6. In case of suspension of market activities, each TSO shall launch the communication procedure set out in Article 38.

Textual Amendments

F1 Art. 35(2)(a) omitted (E.W.S.) (31.12.2020) by virtue of The Electricity Network Codes and Guidelines (System Operation and Connection) (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/533), reg. 1(2), Sch. 2 para. 20(2)(a) (as amended by S.I. 2020/1016, regs. 1(2), 6(2)); 2020 c. 1, Sch. 5 para. 1(1)

F2 Words in Art. 35(2)(e) omitted (E.W.S.) (31.12.2020) by virtue of The Electricity Network Codes and Guidelines (System Operation and Connection) (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/533), reg. 1(2), Sch. 2 para. 20(2)(b) (as amended by S.I. 2020/1016, regs. 1(2), 6(2)); 2020 c. 1, Sch. 5 para. 1(1)

F3 Art. 35(5)(a) omitted (E.W.S.) (31.12.2020) by virtue of The Electricity Network Codes and Guidelines (System Operation and Connection) (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/533), reg. 1(2), Sch. 2 para. 20(3)(a) (as amended by S.I. 2020/1016, regs. 1(2), 6(2)); 2020 c. 1, Sch. 5 para. 1(1)

F4 Art. 35(5)(c) omitted (E.W.S.) (31.12.2020) by virtue of The Electricity Network Codes and Guidelines (System Operation and Connection) (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/533), reg. 1(2), Sch. 2 para. 20(3)(a) (as amended by S.I. 2020/1016, regs. 1(2), 6(2)); 2020 c. 1, Sch. 5 para. 1(1)

F5 Art. 35(5)(e) and word omitted (E.W.S.) (31.12.2020) by virtue of The Electricity Network Codes and Guidelines (System Operation and Connection) (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/533), reg. 1(2), Sch. 2 para. 20(3)(b) (as amended by S.I. 2020/1016, regs. 1(2), 6(2)); 2020 c. 1, Sch. 5 para. 1(1)

Article 36 U.K. Rules for suspension and restoration of market activities

1. By 18 December 2018, each TSO shall develop a proposal for rules concerning the suspension and restoration of market activities.

2. The TSO shall publish these rules on its website following their approval by the [F6 regulatory authority].

3. The rules for suspension and restoration of market activities shall be compatible to the extent possible with:

F7 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) the rules for submission by balancing service providers of balancing capacity and balancing energy bids resulting from arrangements with other TSOs for the coordination of balancing;

(c) the rules for provision by balance responsible party of a balanced position at the end of day-ahead timeframe if required by the terms and conditions related to balancing;

(d) rules for provision of modifications of the position of balance responsible parties; and

(e) the rules for provision of schedules referred to in Article 111(1) F8 ... of Regulation (EU) 2017/1485.

4. When developing the rules for suspension and restoration of market activities, each TSO shall convert the situations referred to in Article 35(1) into objectively defined parameters taking into account the following factors:

(a) the percentage of load disconnection in the LFC area of the TSO corresponding to:

(i)

the inability of a significant share of balancing responsible parties to maintain their balance; or

(ii)

the necessity for the TSO not to follow the usual balancing processes to perform an efficient re-energisation;

(b) the percentage of generation disconnection in the LFC area of the TSO corresponding to the inability of a significant share of balancing responsible parties to maintain their balance;

(c) the share and geographic distribution of unavailable transmission system elements corresponding to:

(i)

the desynchronisation of a significant part of the LFC area rendering the usual balancing processes counterproductive; F9 ...

(ii)

F9 ...

(d) the inability of the following affected entities to execute their market activities for reason(s) outside their control:

(i)

balance responsible parties;

(ii)

balancing service providers;

(iii)

F10 ...

(iv)

transmission connected DSOs;

(e) the absence of properly functioning tools and communication means necessary to perform:

(i)

F11 ...

(ii)

the frequency restoration process; or

(iii)

the reserve replacement process; or

(iv)

the provision by balance responsible party of a balanced position in day ahead and the provision of change of its position; or

(v)

the provision of schedules referred to in Article 111(1) F12 ... of Regulation (EU) 2017/1485.

5. The rules for suspension and restoration of market activities shall define a time delay to be respected for each parameter defined pursuant to paragraph 4, prior to starting the procedure for suspension of market activities.

6. The concerned TSO shall assess in real-time the parameters defined pursuant to paragraph 4, on the basis of the information at its disposal.

F13 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F14 8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F6 Words in Art. 36(2) substituted (E.W.S.) (31.12.2020) by The Electricity Network Codes and Guidelines (System Operation and Connection) (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/533), reg. 1(2), Sch. 2 para. 21(2) (as amended by S.I. 2020/1016, regs. 1(2), 6(2)); 2020 c. 1, Sch. 5 para. 1(1)

F7 Art. 36(3)(a) omitted (E.W.S.) (31.12.2020) by virtue of The Electricity Network Codes and Guidelines (System Operation and Connection) (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/533), reg. 1(2), Sch. 2 para. 21(3)(a) (as amended by S.I. 2020/1016, regs. 1(2), 6(2)); 2020 c. 1, Sch. 5 para. 1(1)

F8 Words in Art. 36(3)(e) omitted (E.W.S.) (31.12.2020) by virtue of The Electricity Network Codes and Guidelines (System Operation and Connection) (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/533), reg. 1(2), Sch. 2 para. 21(3)(b) (as amended by S.I. 2020/1016, regs. 1(2), 6(2)); 2020 c. 1, Sch. 5 para. 1(1)

F9 Art. 36(4)(c)(ii) and word omitted (E.W.S.) (31.12.2020) by virtue of The Electricity Network Codes and Guidelines (System Operation and Connection) (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/533), reg. 1(2), Sch. 2 para. 21(4)(a) (as amended by S.I. 2020/1016, regs. 1(2), 6(2)); 2020 c. 1, Sch. 5 para. 1(1)

F10 Art. 36(4)(d)(iii) omitted (E.W.S.) (31.12.2020) by virtue of The Electricity Network Codes and Guidelines (System Operation and Connection) (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/533), reg. 1(2), Sch. 2 para. 21(4)(b) (as amended by S.I. 2020/1016, regs. 1(2), 6(2)); 2020 c. 1, Sch. 5 para. 1(1)

F11 Art. 36(4)(e)(i) omitted (E.W.S.) (31.12.2020) by virtue of The Electricity Network Codes and Guidelines (System Operation and Connection) (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/533), reg. 1(2), Sch. 2 para. 21(4)(c)(i) (as amended by S.I. 2020/1016, regs. 1(2), 6(2)); 2020 c. 1, Sch. 5 para. 1(1)

F12 Words in Art. 36(4)(v) omitted (E.W.S.) (31.12.2020) by virtue of The Electricity Network Codes and Guidelines (System Operation and Connection) (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/533), reg. 1(2), Sch. 2 para. 21(4)(c)(ii) (as amended by S.I. 2020/1016, regs. 1(2), 6(2)); 2020 c. 1, Sch. 5 para. 1(1)

F13 Art. 36(7) omitted (E.W.S.) (31.12.2020) by virtue of The Electricity Network Codes and Guidelines (System Operation and Connection) (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/533), reg. 1(2), Sch. 2 para. 21(5) (as amended by S.I. 2020/1016, regs. 1(2), 6(2)); 2020 c. 1, Sch. 5 para. 1(1)

F14 Art. 36(8) omitted (E.W.S.) (31.12.2020) by virtue of The Electricity Network Codes and Guidelines (System Operation and Connection) (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/533), reg. 1(2), Sch. 2 para. 21(5) (as amended by S.I. 2020/1016, regs. 1(2), 6(2)); 2020 c. 1, Sch. 5 para. 1(1)

Article 37 U.K. Procedure for restoration of market activities

1. The concerned TSO F15 ... shall launch the procedure for the restoration of market activities suspended pursuant to Article 35(1) when:

(a) the situation triggering the suspension has ended and no other situation referred to in Article 35(1) applies; and

(b) the entities referred to in Article 38(2) have been duly informed in advance in accordance with Article 38.

2. The concerned TSO F16 ... shall launch the restoration of TSO processes impacted by the suspension of market activities when the conditions of paragraph 1 are fulfilled or before, if necessary to restore market activities.

F17 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F17 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F17 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6. No later than 30 days after the market activities have been restored, the TSO(s) that suspended and restored market activities shall prepare a report F18 ... containing a detailed explanation of the rationale, implementation and impact of the market suspension and a reference to the compliance with the rules for suspension and restoration of market activities and shall submit it to the [F19 regulatory authority], and make it available to the entities referred to in Article 38(2).

7. The regulatory [F20 authority] may issue a recommendation to the concerned TSO(s) to promote good practices and prevent similar incidents in the future.

Textual Amendments

F15 Words in Art. 37(1) omitted (E.W.S.) (31.12.2020) by virtue of The Electricity Network Codes and Guidelines (System Operation and Connection) (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/533), reg. 1(2), Sch. 2 para. 22(2) (as amended by S.I. 2020/1016, regs. 1(2), 6(2)); 2020 c. 1, Sch. 5 para. 1(1)

F16 Words in Art. 37(2) omitted (E.W.S.) (31.12.2020) by virtue of The Electricity Network Codes and Guidelines (System Operation and Connection) (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/533), reg. 1(2), Sch. 2 para. 22(3) (as amended by S.I. 2020/1016, regs. 1(2), 6(2)); 2020 c. 1, Sch. 5 para. 1(1)

F17 Art. 37(3)-(5) omitted (E.W.S.) (31.12.2020) by virtue of The Electricity Network Codes and Guidelines (System Operation and Connection) (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/533), reg. 1(2), Sch. 2 para. 22(4) (as amended by S.I. 2020/1016, regs. 1(2), 6(2)); 2020 c. 1, Sch. 5 para. 1(1)

F18 Words in Art. 37(6) omitted (E.W.S.) (31.12.2020) by virtue of The Electricity Network Codes and Guidelines (System Operation and Connection) (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/533), reg. 1(2), Sch. 2 para. 22(5)(a) (as amended by S.I. 2020/1016, regs. 1(2), 6(2)); 2020 c. 1, Sch. 5 para. 1(1)

F19 Words in Art. 37(6) substituted (E.W.S.) (31.12.2020) by The Electricity Network Codes and Guidelines (System Operation and Connection) (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/533), reg. 1(2), Sch. 2 para. 22(5)(b) (as amended by S.I. 2020/1016, regs. 1(2), 6(2)); 2020 c. 1, Sch. 5 para. 1(1)

F20 Word in Art. 37(7) substituted (E.W.S.) (31.12.2020) by The Electricity Network Codes and Guidelines (System Operation and Connection) (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/533), reg. 1(2), Sch. 2 para. 22(6) (as amended by S.I. 2020/1016, regs. 1(2), 6(2)); 2020 c. 1, Sch. 5 para. 1(1)

Article 38 U.K. Communication procedure

1. The rules for suspension and restoration of market activities developed pursuant to Article 36 shall also contain a communication procedure detailing the tasks and actions expected from each party in its different roles during the suspension and restoration of market activities.

2. The communication procedure shall provide that information is sent, simultaneously, to the following entities:

(a) the parties referred to in Article 35(5);

(b) the balance responsible parties;

(c) the balancing service providers;

(d) the transmission connected DSOs; and

(e) the [F21 regulatory authority].

3. The communication procedure shall include at least the following steps:

(a) the notification by the TSO that market activities have been suspended in accordance with Article 35;

(b) the notification by the TSO of best estimate for the time and date for transmission system restoration;

F22 (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(d) the updates by the TSOs on the process for restoration of the transmission system;

(e) the notification by the entities referred to in points (a) to (d) of paragraph 2, that their market tools and communication systems are operational;

(f) the notification by the TSO(s) that the transmission system has been restored back to normal state or alert state;

F23 (g) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F24 (h) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4. All notifications and updates by the TSO(s) F25 ... shall be published on the websites of those entities. When notification or update on the website is not possible, the entity subject to the obligation to notify, shall inform via email, or via any other available means, at least those parties directly participating in the suspended market activities.

5. Notification pursuant to point (e) of paragraph 3 shall be done via email or via any other available means to the concerned TSO.

Textual Amendments

F21 Words in Art. 38(2)(e) substituted (E.W.S.) (31.12.2020) by The Electricity Network Codes and Guidelines (System Operation and Connection) (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/533), reg. 1(2), Sch. 2 para. 23(2) (as amended by S.I. 2020/1016, regs. 1(2), 6(2)); 2020 c. 1, Sch. 5 para. 1(1)

F22 Art. 38(3)(c) omitted (E.W.S.) (31.12.2020) by virtue of The Electricity Network Codes and Guidelines (System Operation and Connection) (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/533), reg. 1(2), Sch. 2 para. 23(3) (as amended by S.I. 2020/1016, regs. 1(2), 6(2)); 2020 c. 1, Sch. 5 para. 1(1)

F23 Art. 38(3)(g) omitted (E.W.S.) (31.12.2020) by virtue of The Electricity Network Codes and Guidelines (System Operation and Connection) (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/533), reg. 1(2), Sch. 2 para. 23(3) (as amended by S.I. 2020/1016, regs. 1(2), 6(2)); 2020 c. 1, Sch. 5 para. 1(1)

F24 Art. 38(3)(h) omitted (E.W.S.) (31.12.2020) by virtue of The Electricity Network Codes and Guidelines (System Operation and Connection) (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/533), reg. 1(2), Sch. 2 para. 23(3) (as amended by S.I. 2020/1016, regs. 1(2), 6(2)); 2020 c. 1, Sch. 5 para. 1(1)

F25 Words in Art. 38(4) omitted (E.W.S.) (31.12.2020) by virtue of The Electricity Network Codes and Guidelines (System Operation and Connection) (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/533), reg. 1(2), Sch. 2 para. 23(4) (as amended by S.I. 2020/1016, regs. 1(2), 6(2)); 2020 c. 1, Sch. 5 para. 1(1)

Article 39 U.K. Rules for settlement in case of suspension of market activities

1. By 18 December 2018, each TSO shall develop a proposal for rules for imbalance settlement and settlement of balancing capacity and balancing energy which shall be applicable for imbalance settlement periods during which the market activities were suspended. The TSO may propose the same rules it applies for normal operations.

The TSO shall publish these rules on its website following their approval by the [F26 regulatory authority].

A TSO may delegate the TSO's tasks referred to in this Article to one or more third parties, provided that the third party can carry out the respective function at least as effectively as the TSO(s). [F27 The Secretary of State or, where applicable, the regulatory authority,] may assign the tasks referred to in this Article to one or more third parties, provided that the third party can carry out the respective function at least as effectively as the TSO(s).

2. The rules referred to in paragraph 1 shall address the settlements of TSO's and third parties, where relevant, with balance responsible parties, and balancing services providers.

3. The rules developed in accordance with paragraph 1 shall:

(a) ensure the financial neutrality of each TSO and relevant third party referred to in paragraph 1;

(b) avoid distortions of incentives or counterproductive incentives to balance responsible parties, balance service providers and TSOs;

(c) incentivise balance responsible parties to strive to be balanced or help the system to restore its balance;

(d) avoid any financial penalties imposed on balance responsible parties and balancing service providers due to the execution of the actions requested by the TSO;

(e) discourage TSOs from suspending market activities, unless strictly necessary, and incentivise TSOs to restore the market activities as soon as possible; and

(f) incentivise balance service providers to offer services to the connecting TSO that helps restore the system to normal state.

Textual Amendments

F26 Words in Art. 39(1) substituted (E.W.S.) (31.12.2020) by The Electricity Network Codes and Guidelines (System Operation and Connection) (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/533), reg. 1(2), Sch. 2 para. 24(2) (as amended by S.I. 2020/1016, regs. 1(2), 6(2)); 2020 c. 1, Sch. 5 para. 1(1)

F27 Words in Art. 39(1) substituted (E.W.S.) (31.12.2020) by The Electricity Network Codes and Guidelines (System Operation and Connection) (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/533), reg. 1(2), Sch. 2 para. 24(3) (as amended by S.I. 2020/1016, regs. 1(2), 6(2)); 2020 c. 1, Sch. 5 para. 1(1)