Prices 2006 for imbalance The prices 2006 for imbalance, as stipulated by the decisions of the CREG of December 8, 2005, March 10, 2006 and May 30, 2006 and as modified by the decision of the CREG of September 26, 2006, are established on the basis of costs incurred by Elia for maintaining balance between generation and consumption in the Belgian control area, at the considered quarter. 1. Definitions The Imbalance of a given Access Responsible Party is the quarter-hourly difference between:
his total injections within his balance perimeter, namely injections at injection points within the Elia Grid, injections in the Elia Grid coming from any other system belonging to the balancing zone operated by Elia, imports, purchases from other Access Responsible Parties; and his total offtakes within his balance perimeter, namely offtakes at offtakes points within the Elia Grid, offtakes from the Elia Grid made in any other system belonging to the balancing zone operated by Elia, exports, sales to other Access Responsible Parties, the losses attributed to this Access Responsible Party.
The Losses for the considered period of this document that are attributed to a Access Responsible Party are the losses in the 380-150 kV grid and are set at 1 % of the sum of: the measured offtakes at offtake points attributed to this Access Responsible Party and; the Distribution Offtake Positions (in case of net offtake) attributed to this Access Responsible Party. The Net Balancing Volume (hereafter ‘NRV’) is, for a considered quarter, the difference between : − on one hand, the sum of upwards activations as ordered by Elia, for the considered quarter, for maintaining the balance in the Belgian control area, expressed in MW, and − on the other hand, the sum of downwards activations as ordered by Elia, for the considered quarter, for maintaining the balance in the Belgian control area, expressed in MW. When, for a given quarter, Elia exclusively orders upwards activations, the Net Balancing Volume has a positive value and is referred to as « upward regulation ». When, for a given quarter, Elia exclusively orders downwards activations, the Net Balancing Volume has a negative value and is referred to as « downward regulation ». When, for a given quarter, Elia orders both upwards and downwards activations with a greater volume of upwards activations, the Net Balancing Volume has a positive value and is referred to as « upward regulation ». When, for a given quarter, Elia orders both upwards and downwards activations with a greater volume of downwards activations, the Net Balancing Volume has a negative value and is referred to as « downward regulation ».
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The weighted average price for upward regulation (hereafter ‘GGO’) is, for a given quarter, the average price of all upwards activations ordered by Elia for maintaining the balance in the Belgian control area ; activated volumes serving as the weight factor. The resources ordered by Elia for upwards regulation are : − secundary control; − tertiary reserve, including activation of incremental bids and activation of mutual reserve between TSO’s; − load shedding. The weighted average price for downward regulation (hereafter ‘GGA’) is, for a given quarter, the average price of all downwards activations ordered by Elia for maintaining the balance in the Belgian control area ; activated volumes serving as the weight factor. The resources ordered by Elia for downwards regulation are : − secundary control; − activation of decremental bids and activation of mutual reserve between TSO’s. The marginal price for upward regulation (hereafter ‘MO’) is, for a given quarter, the highest price of all upwards activations ordered by Elia for maintaining the balance in the Belgian control area. The resources ordered by Elia for upwards regulation are : − secundary control; − tertiary reserve, including activation of incremental bids and activation of mutual reserve between TSO’s; − load shedding. The marginal price for downward regulation (hereafter ‘MA’) is, for a given quarter, the lowest price of all downwards activations ordered by Elia for maintaining the balance in the Belgian control area. The resources ordered by Elia for downwards regulation are : − secundary control; − activation of decremental bids and activation of mutual reserve between TSO’s. The gross volume of upward regulation (hereafter ‘BOV’) is, for a given quarter, the sum of upwards activations ordered by Elia for maintaining the balance in the Belgian control area. The resources ordered by Elia for upwards regulation are : − secundary control; − tertiary reserve, including activation of incremental bids and activation of mutual reserve between TSO’s; − load shedding. The gross volume of downward regulation (hereafter ‘BAV’) is, for a given quarter, the sum of downwards activations ordered by Elia for maintaining the balance in the Belgian control area. The resources ordered by Elia for upwards regulation are : − secundary control; − activation of decremental bids and activation of mutual reserve between TSO’s. The market reference price is set equal, at the date of January 1st, 2006, to the day-ahead clearing price on the Amsterdam Power Exchange (APX), due to the lack of a power exchange at that date in Belgium. When a reference price may be fixed on the basis of the power exchange in Belgium, Elia will propose to move to such a reference price.
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2. Setting 2006 prices for imbalances The prices for quarterly imbalances are established on the basis of computations formulas in the table below. These prices relate to the quarterly imbalance of one given Access Responsible Party (ARP), for one given quarter. Prices for negative Imbalance are always positive, meaning a payment from the Access Responsible Party to Elia. Prices for positive Imbalance can either be positive or negative. A positive price for Positive Imbalance means a payment from Elia to the Access Responsible Party and a negative price for Positive Imbalance means a payment from the Access Responsible party to Elia. Net Balancing Volume (NRV)
Imbalance of the ARP
Positive Negative
Negative (downward regulation)
Positive (upward regulation)
Min[γ*GGA;GGA+δ*(MA-GGA)] (1)
0,90 * market reference price
1,10 * market reference price
Max[α*GGO;GGO+β*(MO-GGO)] (2)
where: from January 1, 2006 to September 30, 2006
(1) the price (0,90 * market reference price) is an upper bound for the price for imbalance (2) the price (1,10 * market reference price) is a lower bound for the price for imbalance γ = 0,85 if GGA > 0 and γ = 1,15 if GGA < 0 δ = min (1; BAV/450) α = 1,15 β = min (1; BOV/450);
from October 1, 2006 to December 31, 2006
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(1) the price (0,90 * market reference price) is an upper bound for the price for imbalance (2) the price (1,10 * market reference price) is a lower bound for the price for imbalance γ = 0,90 if GGA > 0 and γ = 1,10 if GGA < 0 δ = min (1; BAV/450) α = 1,10 β = min (1; BOV/450).
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