1.All market participants shall be responsible for the imbalances they cause in the system (‘balance responsibility’). To that end, market participants shall either be balance responsible parties or shall contractually delegate their responsibility to a balance responsible party of their choice. Each balance responsible party shall be financially responsible for its imbalances and shall strive to be balanced or shall help the electricity system to be balanced.
2.[F1The Secretary of State] may provide derogations from balance responsibility only for:
(a)demonstration projects for innovative technologies, subject to approval by the regulatory authority, provided that those derogations are limited to the time and extent necessary for achieving the demonstration purposes;
(b)power-generating facilities using renewable energy sources with an installed electricity capacity of less than 400 kW;
(c)installations benefitting from support approved by the Commission [F2before IP completion day] under Union State aid rules pursuant to Articles 107, 108 and 109 TFEU [F3as those Articles had effect in EU law immediately before IP completion day], and commissioned before 4 July 2019.
[F1The Secretary of State] may F4... provide incentives to market participants which are fully or partly exempted from balancing responsibility to accept full balancing responsibility.
3.When [F5the Secretary of State] provides a derogation in accordance with paragraph 2, it shall ensure that the financial responsibility for imbalances is fulfilled by another market participant.
4.For power-generating facilities commissioned from 1 January 2026, point (b) of paragraph 2 shall apply only to generating installations using renewable energy sources with an installed electricity capacity of less than 200 kW.
Textual Amendments
F1Words in Art. 5(2) substituted (E.W.S.) (31.12.2020) by The Electricity and Gas (Internal Markets and Network Codes) (Amendment etc.) (EU Exit) Regulations 2020 (S.I. 2020/1006), reg. 1(2), Sch. 4 para. 5(2)
F2Words in Art. 5(2)(c) inserted (31.12.2020) by The State Aid (Revocations and Amendments) (EU Exit) Regulations 2020 (S.I. 2020/1470), reg. 1(2), Sch. 1 para. 10(2)(a)(i) (with Sch. 3)
F3Words in Art. 5(2)(c) inserted (31.12.2020) by The State Aid (Revocations and Amendments) (EU Exit) Regulations 2020 (S.I. 2020/1470), reg. 1(2), Sch. 1 para. 10(2)(a)(ii) (with Sch. 3)
F4Words in Art. 5(2) omitted (31.12.2020) by virtue of The State Aid (Revocations and Amendments) (EU Exit) Regulations 2020 (S.I. 2020/1470), reg. 1(2), Sch. 1 para. 10(2)(b) (with Sch. 3)
F5Words in Art. 5(3) substituted (E.W.S.) (31.12.2020) by The Electricity and Gas (Internal Markets and Network Codes) (Amendment etc.) (EU Exit) Regulations 2020 (S.I. 2020/1006), reg. 1(2), Sch. 4 para. 5(3)