Difference between the agreed quantity of electricity of Subject's balancing group and actual quantity of electricity of Subject's balancing group in MWh rounded to 3 decimal places considering the quantity of provided regulation electricity. Imbalance of a Subject of Settlement without an off-take point is the difference between contractual electricity consumption and contractual supply according to registered daily diagram by Imbalance Biller.
- Imbalance Billing
Imbalance Biller's activity aimed to evaluate the imbalance and consecutive settlement of individual market participants, which have signed the Agreement on Settlement of Imbalance with the Imbalance Biller (so called Subjects of Settlement).
- Imbalance Biller
OKTE Plc. is the Imbalance Biller pursuant to the Act of Energy. The Imbalance Billing process is described within the OKTE Plc. Operation Order.
- The need for a valid Agreement on Settlement of Imbalance
Every electricity market participant needs a valid Agreement on Settlement of Imbalance, unless another electricity market participant has contractually agreed to accept the responsibility for imbalance for such participant. Electricity market participant becomes Subject of Settlement by signing the Agreement on Settlement of Imbalance.
- Consequences if a subject has neither signed the Agreement on Settlement of Imbalance nor any other electricity market participant has accepted responsibility for its imbalance
Based on the Act of Energy such situation is classified as unauthorized consumption bearing legal consequences.
- Procedure in case of incorrect Imbalance Billing result
There is an option to ask for reevaluation of the imbalance billing. This process is described within Chapter 2 of the OKTE Plc. Operation Order.
- Formulas for calculation of the imbalance price
- Mathematical formula for determination of negative payment for imbalance is defined as follows:
PO-i = Oi * ZC (in €),
-negative payment of i-th Subject of Settlement for imbalance in a given Clearing period,
-imbalance of i-th Subject of Settlement in MWh in a given Clearing period,
-clearing price of imbalance in €/MWh determined by Clearing Agent pursuant to applicable regulation in a given Clearing period.
This payment shall be made by Subject of Settlement to Clearing Agent.
- Mathematical formula for determination of positive payment for imbalance is defined as:
PO+i = Oi * ZC * kzpo (in €),
-positive payment to i-th Subject of Settlement for imbalance in a given Clearing period,
-imbalance of i-th Subject of Settlement in MWh in a given Clearing period,
-clearing price of imbalance in €/MWh determined by Clearing Agent pursuant to applicable regulation in a given Clearing period,
-coefficient of payment for counter-imbalance.
This payment shall be made by Clearing Agent of Subject of Settlement.
- Mathematical formula for determination of coefficient of payment for counter-imbalance for the purpose of final calculation is defined as:
kzpok = -(NRE+PRE+PO-) / PO+,
-coefficient of payment for counter-imbalance for the purpose of final calculation; in case that the result of formula is greater than 1, the coefficient value of 1 shall be used for the purpose of final evaluation,
-total costs in € for acquisition of regulating electricity, including costs for acquisition of electricity from imported emergency assistance in the evaluated month,
-total payment of the Subjects of Settlement for the share in the costs for regulating electricity in the evaluated month in €,
-the sum of all positive payments of Subjects of settlement for imbalances without the application of kzpo coefficient,
-the sum of all negative payments of Subjects of settlement for imbalances.
- Depositing a guarantee when the Agreement on Settlement of Imbalance is signed
The amount of the financial guarantee is calculated according to Appendix Nr. 1 of Electricity Market Rules, which is explained in chapter 2 of the OKTE Plc. Operation Order. Electricity market participant will sign the Agreement on Settlement of Imbalance based on which the calculation of financial guarantee is requested.
- Forms of financial guarantee
According to OKTE Plc. Operation Order there are two possible forms of financial guarantee:
- Depositing cash on Clearing Agent's account within 3 business days prior to the effective date of Agreement SI.
- Banker's guarantee issued by a bank which is license holder in SR and has a long-term credit rating of BBB+ (S&P), or Baa1 (Moody´s), respectively, valid at least 12 months. Handing over a bank guarantee to Clearing Agent within 15 calendar days prior to the required effective date of Agreement SI.
- There is no other form of financial guarantee possible.
- Process of calculation of financial guarantee
The Subject of Settlement has to meet all requirements (registration in XMtrade®, signing the agreement). Thereafter the subject will send no later than on 20th at 12:00 p.m. of the given month the maximum day trading volume (parameter value OO for the next month) to the XMtrade® system and at 12:30 p.m. the financial guarantee for the next month is published.
- Reevaluation of financial guarantee during the validity of the agreement
The amount of financial guarantee is changed on monthly basis. In case that the financial guarantee was raised, the Subject of Settlement is bound to pay the raised amount within 3 working days from publishing the information in the XMtrade® system. In case that the financial guarantee was lowered, no money is returned automatically. A written request to return the money (difference) is necessary.
- Formulas for calculation of the financial guarantee
Financial guarantee is calculated as FZ = OO * (Zp + 5) * Po * Kg * Co (in €)
FZ -The amount of Subject of Settlement's financial security in EUR. OO -Higher value from sum of absolute values of agreed consumption electricity and sum of absolute values of supply electricity in daily diagram of the Subject of Settlement reported by Short-term Electricity Market Operator. Zp -The period for which financial guarantee is determined, the length of the period is in OKTE, a.s. Operation Order. Po -Relative imbalance of the subject of settlement valid for the following month which is in OKTE, a.s. Operation Order with rounded to three decimal places. Subjects of settlement which conclude the contract on settlement of imbalance for the first time and subjects of settlement without off-take points the value of Po is 0.5. The minimum value of Po is 0.005. Kg -The coefficient of financial guarantee for the given evaluation group which is in OKTE, a.s. Operation Order based on value parameter Hk in interval from 0 to 1. Co -Average price of negative imbalance in EUR valid for the next month. This price is published by Short-term Electricity Market Operator on OKTE, a.s. website.
- Reevaluation of Kg index
The Kg = 1 for the first four months since the first registered trade (diagram). After this period the index changes as subject to trading volume as well as payment discipline of the Subject of Settlement to Imbalance Biller.
- Daily Diagram
The sequence of values of the agreed quantity of electricity consumption or electricity supply in MW for each trading hour of a trading day. It contains internal electricity supply realization and external electricity export and import realization.
- Sending of daily diagrams
Daily diagrams are sent by all electricity market participants, who accepted the responsibility for imbalance(Subjects of Settlement) and have for the day arranged internal trades with other Subjects of Settlement on the defined territory, or export electricity from or import electricity to defined territory, respectively.
- Actual quantity of electricity of a balancing group
Metered quantity of electricity collected by Imbalance Biller from individual transmission operators, which is aggregated according to individual balancing groups.