Analysis and Recommendations on Market Rules Amendments

May 27, 2021

USAID ESP has prepared recommendations on the key points of draft NEURC Resolution “On Amending the Market Rules” concerning transparency in the market operation and data publication, frequency of imbalances and balancing invoicing period, terms and conditions for the reconciliation process.

  • In order to mitigate the negative impact of asymmetrical information and insufficient transparency, more information must be available for market participants in a timely manner. To this end, ESP recommends Settlement Administrator to publish settlement results on D+1 and financial results at the beginning of the month following the settlement one.
  • ESP recommends to shift from the 10 days based invoicing period (for imbalances and balancing energy) to a monthly-based period that will allow to considerably ease the process of settlements, decrease an administrative burden and clarify the input data for settlements. However, monthly based invoicing requires more careful market surveillance.
  • For the reconciliation process, it is recommended to have one obligatory calculation on M+3, and one additional on-demand calculation on M+6 depending on the justified decision by the Settlement Administrator and Commercial Metering Administrator.