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A balance provider can be any entity who has signed a balance agreement with Elering to secure its own balance according to the Electricity Market Act and related legislation.

By signing a balance agreement the TSO undertakes to sell to the balance provider any amounts of electricity that are missing in its balance area in a trading period, and to buy any excess electricity from the balance provider.

The balance provider is responsible for the balance of the market participants in its open supply chain. It is the balance provider’s responsibility to ensure that the amounts of electricity bought from or put into the grid by market participants in its balance area and the amounts of electricity sold or taken out of the grid in the same trading period are in balance.

If the balance provider is not in balance, it must immediately on the first request of the TSO show how balance will be restored. On the TSO's demand, the balance provider has to take immediate actions to return to balance. The balance provider must use communication systems that allow the TSO to contact them at any time of day or night.

Elering’s standard terms and conditions of the balance agreement, as approved by the Competition Authority, are appended to the balance agreement.

The standard terms for the balance agreement define clearly:

  • the rules for balance planning, intra-day balance corrections, and imbalance settlement;
  • the rights and obligations of the TSO and the balance provider,
  • guarantees.

With the decision nr 7-10/2019-001 (27.02.2019), the Estonian Competition Authority has approved Elering’s new electricity standard terms and conditions. Elering shall apply the new standard terms and conditions starting from 01.05.2019.

The standard terms and conditions could be found attached below.

Kristofer Vare

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