Decision to approve the proposal from the Electricity System Operator to amend the existing Imbalance Settlement Harmonisation Methodology
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On 15 October 2021, we received a proposal from the Electricity System Operator (“ESO”) to amend the Imbalance Settlement Harmonisation Methodology (“ISHM”) in accordance with Article 6(3) of the Commission Regulation (EU) 2017/2195 establishing a guideline on electricity balancing (the “EBGL Regulation”), as amended by the Electricity Network Codes and Guidelines (Markets and Trading) (Amendment) (EU Exit) Regulations 2019. In this amendment, the ESO proposes to rename the methodology from ISHM to the Imbalance Settlement Methodology (“ISM”), i.e. removing the harmonisation element and proposing the main features of imbalance settlement in Great Britain (“GB”).
This letter sets out our decision to approve the proposed amendments to the existing ISHM, renaming it as ISM and refocusing it for GB.