Decision to grant the ESO a derogation from the requirements of Article 6(4) of the Electricity Regulation for STOR and the BM
Decision
- Publication date
- Industry sector
- Generation and Wholesale Market
On 6 December 2019, 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 the Regulation (EU) 2019/943 (the Electricity Regulation) for two products; Short Term Operating Reserve (STOR) and the Balancing Mechanism (BM). The ESO have requested a derogation from the requirements of Article 6(4) to allow two specific products, STOR and the BM, to continue to have their balancing energy payments settled on a pay-as-bid basis, rather than the pay-as-cleared basis required by the Electricity Regulation.
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.