The balancing market is operated by the OTE, the electricity and gas market operator, in cooperation with ČEPS; ČEPS is the sole purchaser.
The subject of trading consists of electricity to be used by ČEPS, the transmission system operator, to maintain power balance within the Czech power system, i.e. as regulation energy. Unlike with ancillary services purchase, the activation of AnS provided from certified generating units need not be activated and thus can be “saved” to be used for further control purposes within the power system.
Regulation energy trading commences with a call for tender published by ČEPS and available to registered market participants (RMP) through the OTE trading portal. RMPs either submit their offers or respond to a so-called free enquiry (an enquiry launched by ČEPS but not yet answered) made by the Company for regulation energy. Energy volume is specified in MWh and the energy price in CZK/MWh for each trading transaction.
Both positive regulation energy (electricity supplied to or not withdrawn from the grid by the RMP) and negative regulation energy (electricity not supplied to or withdrawn from the grid by the RMP) to be delivered within the Czech Republic are traded in the balancing market; the trading interval is one hour.
The balancing market opens 60 minutes prior to the required time of regulation energy delivery and closes 30 minutes later (e.g. for the 10th trading hour the market opens at 8:00 a.m. and closes at 8:30 a.m.). The market is open 24 hours a day, 365 days a year.
An enquiry for regulation energy is made based on system imbalance predictions provided by ČEPS predictor models. The price for regulation energy is determined in compliance with Regulation 541/2005, on the rules governing electricity market operation, pricing principles for OTE activities and the implementation of certain other provisions of the Energy Act, as amended.