Balancing Reserve Amendments to the terms and conditions related to balancing
- Publication type:
- Transparency document
- Publication date:
- Topic:
- National Energy System Operator (NESO), Security of supply
- Industry sector:
- Supply and Retail Market
On 1 August 2025, National Energy System Operator (NESO) sent us proposals to update the terms and conditions related to balancing to implement changes to its Balancing Reserve service.
In line with Article 18 of Commission Regulation (EU) 2017/2195 establishing a guideline on electricity balancing, we are required to review the proposal and publish a decision no later than two months after its submission.
NESO’s proposed amendments to the terms and conditions included:
- changing the Balancing Reserve capacity auction time to 14:00 day-ahead, enabling co-optimisation with other NESO balancing services
- changes to align the contract transfer and excessive pricing clauses with other NESO balancing services
- changes to relax some of the service parameters which should expand the potential provider pool
We have assessed NESO’s proposals, the further evidence it provided and the consultation responses. We agree with the proposals NESO have made and have decided to approve them.
This letter sets out the outcome of our review and any necessary next steps.