Electricity Market Code
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1 Electricity Market Code Chapter 1 Definitions Version 2.0 This documents contains a partial translation of the Austrian Electricity Market Code from German into English. It is provided for the reader s convenience only, it does in no way constitute a binding document and has no regulatory character - for Austrian market rules, including market, grid and other codes, the reader should refer to the German versions of all relevant documents only. E-Control assumes no liability whatsoever for the accuracy, correctness or completeness of the translation in this document.
2 Definitions Admission to the grid The initial establishment of a connection to the grid, or an increase in the connected capacity of an existing connection to the grid. Ancillary services All services necessary for the operation of a transmission or distribution grid. Annual consumption figure The billed consumption as scaled to a period of 365 days. Balance group coordinator s. clearing and settlement agent. Bank account for direct debits Bank account for which direct debits can be set up. Balance group (BG) A virtual group of suppliers and customers within which the amounts of electric energy procured (by procurement schedules, injections) and supplied (by delivery schedules, withdrawals) are balanced. Balance group manager s. balance responsible party. Balance group members Suppliers or customers joined into balance groups within which injection and withdrawal of electricity are balanced. Balance group representative s. balance responsible party. Balance group responsible party s. balance responsible party. Balance responsible party (BRP) The entity representing a balance group vis-à-vis other market participants and vis-àvis the clearing and settlement agent. 2
3 Balancing energy The difference between the amount of electric energy agreed in the schedule and the amount actually fed in or out by a balance group in a defined measurement period; the amount of electric energy per measurement period may be metered or calculated. Balancing energy supplier A supplier that fulfils the technical requirements for participating in the balancing market. BDEW Bundesverband der Energie- und Wasserwirtschaft (German Association of Energy and Water Industries), Reinhardtstr. 32, Berlin, Germany Billed consumption The consumption between two meter readings. Certified address An address with an electronic certificate that can be used to add signatures to s or encrypt them. Charge for grid losses The charge that compensates the network operator for the costs incurred by procuring the energy required to cover network losses. CHP (combined heat and power) electric energy Electric energy generated directly and with maximal efficiency as a by-product from district heating production. CHP plant A power plant that uses primary energy sources to produce both electricity and useful heat. Clearing and settlement agency The agency operated by the clearing and settlement agent that uses the information provided by network operators and market participants to determine the balancing energy for each balance group; that draws up the merit order list for calling off power plants to generate balancing energy and calculates the balancing energy prices based on the producers bids; and that manages the organisation, clearing and settlement of balance groups. 3
4 Clearing and settlement agent (CSA) A natural or legal person with an official license to operate a clearing and settlement agency for the purpose of organising and clearing balancing energy services within a control area. Clearing, financial The clearing and settlement agent s determination of a balance group s imbalance charges for each clearing period, as well as for the entire financial clearing period, including the settlement of these imbalance charges with each balance responsible party. Clearing, first The regular (at least monthly) process by which the total imbalances for each balance group during each clearing period are determined; for this purpose, the aggregate schedules are offset against the sum of aggregate quarter-hourly meter readings and aggregate load profiles. Clearing, second The correction of the imbalances determined for each balance group during the first clearing; this relies on the actual annual electricity injections and withdrawals metered. Clearing, technical The balancing of each balance group s technical account at the clearing and settlement agent s; for this purpose, the time series data provided by the network operators and any internal and external schedules that have been exchanged between balance groups are used. Clearing fund The guarantee fund kept by the clearing and settlement agent to protect clearing members from a clearing member default; the amount a balance responsible party is required to contribute to the fund depends on its credit rating. Clearing interval The time interval (currently 1 month) for which the clearing and settlement agent performs the first and second clearing. Clearing period The shortest time interval (15 minutes) for which the clearing and settlement agent determines balancing energy prices and for which the amounts of balancing energy used are metered for the purpose of technical clearing. 4
5 Consumer An electricity consumer that buys electric energy for own use. Control area The smallest unit within the interconnected system in which load-frequency control is operated. Control area manager (CAM) The entity which is responsible for load-frequency control within a control area; this function may also be carried out by a third company based in another member state of the European Union. Control block A unit in the synchronous area ENTSO-E Continental Europe that comprises one or more control areas and works together with other control blocks that are part of the system in the load-frequency control function. Cost cascading A calculation method which is applied to allocate the prorated costs of the grid level to which a consumer group is directly connected and of all upstream grid levels to that consumer group. Credit check The credit check of a balance responsible party applicant, which involves a check of its entire economic, corporate, financial and staffing situation. CSA contract The contract between the clearing and settlement agent and the market participants about the statutory services to be provided; the General Terms and Conditions of the CSA become binding by virtue of this contract. Customer A consumer, electricity trader or electricity undertaking that buys electric energy. Deviation factor The ratio of actual to standard consumption on each day between two meter readings. Digital signature An encryption annex to an electronically transmitted message that serves to demonstrate that the message was created by a known sender and was not altered in transit. 5
6 Direct line A line constructed in addition to the interconnected system. Directly connected grid zones Grid zones linked by electric connections. Distribution The transport of electric energy through medium-voltage or low-voltage distribution networks for the purpose of supplying customers. Economic ranking The ranking of sources of electric energy according to economic criteria. Electricity trader A natural or legal person or a commercial undertaking selling electric energy with a view to profit. Electricity undertaking A natural or legal person or a commercial undertaking performing one or more of the functions of generation, transmission, distribution, supply and purchase of electric energy with a view to profit, as well as performing commercial, technical or maintenance duties in connection with these functions, excluding consumers. Encrypted An electronic message that has been encrypted so that it can be read only by the designated recipient. ENTSO-E (European Network of Transmission System Operators for Electricity) Association of transmission system operators (TSO) in Europe, founded on 1 July Exchange programme The total scheduled energy interchange between two control areas during a measurement period (definition by ENTSO-E Continental Europe). Financial clearing period The time period for which the clearing and settlement agent performs the financial clearing. Generation The production of electric energy. 6
7 Green card The clearing and settlement agent s confirmation to E-Control that it considers an applicant to fulfil all technical, financial and contractual requirements necessary for the function it has applied for. Grid access The utilisation of a grid by a customer or producer. Grid admission charge The lump-sum charge that compensates the network operator for all expenditures directly arising from the grid admission (establishment of first connection to a grid) or from an increase in the connected capacity of an existing grid connection. Grid connection The physical connection of a customer or producer facility to the grid. Grid level A part of a grid, mainly defined by its voltage level. Grid loss charge s. charge for grid losses. Grid losses The difference between the amounts of electric energy injected and withdrawn from a grid that results from the wires ohmic resistance, insulator discharges, coronas or other physical phenomena. Grid operator s. network operator. Grid provision The indirect expenses in the upstream grid incurred by a network operator in enabling a grid user s grid connection. Grid provision charge The charge that compensates the network operator for the indirect expenses it has incurred in the upstream grid to enable a grid user s grid connection. Grid use The injection or withdrawal of electric energy from a grid. 7
8 Grid user A natural or legal person or commercial undertaking feeding electric energy in or out of a grid. Grid zone The part of an electricity grid in which the same usage charges apply. Group undertaking A legally independent undertaking affiliated with another legally independent undertaking pursuant to section 228(3) Handelsgesetzbuch (Commercial Code). GTC CSA The General Terms and Conditions of the clearing and settlement agent. Handover point A point on an electric grid named such and agreed by way of contract, where electric energy is transferred between the parties to the contract. The handover point may coincide with the metering point and the ownership boundary. Indirect representative A representative that acts in its own name on behalf of the represented. Injecting party A producer or electricity undertaking feeding electric energy into the grid. Integrated electricity undertaking A vertically or horizontally integrated electricity undertaking. Interconnected system A number of transmission and distribution grids linked together by means of one or more interconnectors. Interconnector The facilities used to link electricity grids. Load profile The amount of electric energy taken by a withdrawing party or fed in by an injecting party shown in time intervals. Margin The collateral of a balance responsible party to be deposited with the clearing and settlement agent in addition to the compulsory contribution to the clearing fund. 8
9 Market participants Clearing and settlement agents; balance responsible parties; balance group members; wholesalers; distribution system operators; transmission system operators; suppliers; electricity traders; producers; control area managers; grid users; customers; consumers; electricity exchanges. Market Rules (MR) The entirety of all legal or contractual rules, regulations and provisions which electricity market participants must comply with in order to facilitate and guarantee the proper functioning of this market. The Market Rules include: GTC of the clearing and settlement agent (GTC CSA) GTC of balance responsible parties, including the green power balance responsible parties (GTC BRP) GTC of distribution system operators (GTC DSO) GTC of transmission system operators (GTC TSO) Electricity Market Code (EMC) Technical and Organisational Rules for operators and users of transmission and distribution grids (TOR Grid Code, Distribution Code and Metering Code) Measurement period A constant timeframe within which a physical quantity (e.g. electric power) is measured. Membership of a balance group, direct Market participants that have concluded a contract with a balance responsible party about the organisation and settlement of their imbalance charges resulting from differences between injections and withdrawals are direct members of the balance group. Membership of a balance group, indirect Grid users and electricity traders that have concluded a contract with a supplier about the supply of electricity, including the organisation and settlement of their imbalance charges resulting from differences between injections and withdrawals, are indirect members of the supplier s balance group. Such indirect membership means that there is no direct contract between the grid user or electricity trader and the balance responsible party. Metering point (MP) An entry or exit point at which energy flows are metered and registered. 9
10 Meter reading The number that indicates the amount of electric energy fed in or withdrawn at a metering point in the interconnected system, as metered mean load during measurement periods. Minimum collateral The minimum amount of the mandatory contribution to the clearing fund to be deposited with the clearing and settlement agent. Monthly aggregate time series For each balance group or supplier, the time series resulting from aggregating the time series data of load metered customers and those of the standardised load profiles, used in the clearing process. Network access s. grid access. Network connection s. grid connection. Network losses s. grid losses. Network operator The operator of a transmission or distribution grid with a nominal frequency of 50 Hz. Network use s. grid use. Network user s. grid user. Party entitled to grid access A customer or producer. Producer A legal or natural person or a commercial undertaking that generates electricity. Renewable energy sources Water, biomass, biogas, geothermal energy, wind and sunlight, where they are used to generate electricity; wastes and sewage sludge are not counted among the renewables. 10
11 Reserve The generation capacity available to cover unplanned generation outages. Risk management The clearing and settlement agent s credit check of balance responsible parties, including the determination, request for, release and administration of collateral as well as the use of collateral by the clearing and settlement agent in the case of a balance responsible party default. Schedule A document that shows the amounts of electric energy exchanged among balance groups as projected mean load during regular intervals (measurement periods). Schedule, external A schedule for exchanges between balance groups that are located in different control areas. Schedule, internal A schedule for exchanges between balance groups that are located in the same control area. Standard consumption The consumption during a given period of time that is reflected in a standardised load profile provided by the clearing and settlement agent. Standardised load profile (SLP) A load profile characteristic of a certain group of injecting or withdrawing parties drawn up by way of a suitable procedure. Supplier A natural or legal person or commercial undertaking that provides electric energy to other natural or legal persons. Supply The sale and delivery of electric energy to customers. System access s. grid access. System access applicant A natural or legal person that has applied for grid access. 11
12 System access contract The individual agreement concluded between a party entitled to grid access and a network operator that regulates grid connection and utilisation of the network operator s grid. System charges in force The charges payable by grid users to network operators for grid use which have been set by the competent authority and are currently in place. System connection s. grid connection. System losses s. grid losses. System operator A network operator having at its disposal the technical and organisational means to take any measures required to maintain the operation of the grid. All network operators in Austria are system operators. System use s. grid use. System user s. grid user. Technical rules in force The commonly accepted technical rules, the Technical and Organisational Rules for operators and users of transmission and distribution grids mentioned in the Elektrizitätswirtschafts- und organisationsgesetz (Electricity Act) (the TOR corresponding to the Grid Code, Distribution Code and Metering Code), as well as the operation rules of network operators. Third countries Countries that are not members of the European Union and have not acceded to the European Economic Area Agreement. Transmission The transport of electric energy on an extra high-voltage or high-voltage grid for the purpose of supplying consumers or other customers. 12
13 Transmission grid, transmission network, transmission system A high-voltage interconnected system with a voltage of 110 kv or above, serving the purpose of supraregional transport of electric energy. UCTE (Union for the Coordination of Transmission of Electricity) Former TSO association in Europe, today part of ENTSO-E. Vertically integrated electricity undertaking (VIU) An electricity undertaking that performs activities both in the regulated (transmission and distribution) and the liberalised part (generation, supply, trade) of the electricity market. Withdrawing party A consumer or network operator that takes electric energy from the grid. Wholesaler An electricity trader that performs no transmission or distribution functions either inside or outside of the network in which it operates. Working day All days except Saturdays, Sundays, statutory holidays, Good Friday, and 24 and 31 December. 13
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