On 17 February 2023, the ESO submitted a request to us to extend an extant derogation against their standard licence condition C28.4 to procure balancing services following market-based procedures for the non-frequency balancing tool, Net Transfer Capacity.
Under our powers outlined in Standard Licence Condition C28.9, we have decided to grant the ESO an extension to the derogation originally issued 23 August 2021. This derogation is in place for a limited time, expiring on 30 September 2023. This decision letter provides the rationale for our decision and the next steps which must be taken.