Single pricing of all imbalances from Q2/2021

Single pricing of all imbalances from Q2/2021

The Nordic TSOs have agreed to implement a single price - single position imbalance model by Q2/2021, without the previously proposed dual pricing in so-called diverging imbalance settlement periods (ISPs).

On 2 October last year, the Nordic TSOs proposed an imbalance model where dual pricing based on a single position would be used in so-called diverging ISPs. The proposal was further elaborated in a discussion paper “Nordic TSOs discussion paper on imbalance pricing”, which was published on 20 November 2019 and opened for consultation with stakeholders from November – December. The Nordic TSOs received a significant number of comments from the Nordic stakeholders on the proposal.

Following the input from the public consultation Nordic TSOs have reassessed and decided to adjust the initial proposal. The main reason for the reconsideration is uncertainty of the cost/benefit of dual pricing as a mitigation measure before 15 min ISP.

It is important to underline that the balancing model of the Nordics is based on market parties following plans and keeping their balance. Therefore, the Nordic TSOs will continue to evaluate other possible mitigation measures to be implemented together with the single price - single position model from Q2/2021. These mitigation measures include for example monitoring of imbalances, requirement for production plans and changes to the imbalance fee structure. Potential measures will be discussed with the stakeholders during the implementation process.

The decision was made by the Nordic Balancing Steering Committee on Friday 24 January.