Imbalance settlement

FAQ

Imbalance settlement

Imbalance settlement Expand allCollapse all

Imbalance

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 = O_i * ZC (in €),

where:

PO-_i	-negative payment of i-th Subject of Settlement for imbalance in a given Clearing period,
O_i	-imbalance of i-th Subject of Settlement in MWh in a given Clearing period,
ZC	-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 = O_i * ZC * kzpo (in €),

where:

PO+_i	-positive payment to i-th Subject of Settlement for imbalance in a given Clearing period,
O_i	-imbalance of i-th Subject of Settlement in MWh in a given Clearing period,
ZC	-clearing price of imbalance in €/MWh determined by Clearing Agent pursuant to applicable regulation in a given Clearing period,
kzpo	-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:

kzpo_k = -(NRE+PRE+PO-) / PO+,

where:

kzpo_k	-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,
NRE	-total costs in € for acquisition of regulating electricity, including costs for acquisition of electricity from imported emergency assistance in the evaluated month,
PRE	-total payment of the Subjects of Settlement for the share in the costs for regulating electricity in the evaluated month in €,
PO+	-the sum of all positive payments of Subjects of settlement for imbalances without the application of kzpo coefficient,
PO-	-the sum of all negative payments of Subjects of settlement for imbalances.

Is it necessary to provide a financial guarantee when signing an Agreement on Settlement of Imbalances?

Yes, it is necessary to provide a financial guarantee. The amount of the financial guarantee can be calculated using the financial calculator.

What forms of financial guarantee can be used?

In accordance with the OKTE, a.s. Operation Order, three forms of providing a financial guarantee are possible:

depositing funds into the specified OKTE account,
submitting a bank guarantee,
submitting an insurance guarantee.

What bank guarantees are accepted?

We accept bank guarantees issued by a bank holding a banking license in the Slovak Republic:

• with a recognized long-term credit rating of at least BBB+ (S&P) or Baa1 (Moody’s),
• by the Slovak Guarantee and Development Bank,
• by EXIMBANKA SR.

The wording of the bank guarantee must be in the Slovak language and have a validity period of at least 12 months.

What insurance guarantees are accepted?

We accept insurance guarantees from insurance companies with a credit rating of at least AA (S&P) or Aa2 (Moody’s), holding an authorization to conduct insurance activities issued by the National Bank of Slovakia, with a validity period of at least 12 months and provided in the Slovak language.

Is the amount of the financial guarantee the same for the entire duration of the contract?

No, the amount of the financial guarantee is adjusted based on the recalculation of the financial guarantee, which is published on the 20th day of each month in the OKTE Information System.

What should be done if the financial security deposit is insufficient after calculation?

If an increase of the financial guarantee is required for the following month, the settlement entity is obliged to increase the financial guarantee no later than by the 26th day of the month in which the recalculation of the financial guarantee was published.

If the financial guarantee is lower, will we automatically receive the difference back?

No. It is necessary to submit a written request for the return of part of the financial guarantee. The original request can be sent by mail or electronically with a qualified electronic signature.

A template of the request can be found under the “Imbalance Settlement” tab in the “Contracts” section.

Is it possible to transfer the financial security deposit between the ISZO and ISOT systems?

Yes. It is necessary to submit a written request to transfer part of the financial guarantee. The original request can be sent by mail or electronically with a qualified electronic signature.

A template of the request can be found under the “Imabalance Settlement” tab in the “Contracts” section.

How can I calculate the financial guarantee?

Financial guarantee is calculated as FZ = OO * (Zp + 5) * Po * Kg * Co (in €)
where:

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 in interval from 0.3 to 1.2
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.

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.