Third Amendment of Equalisation Scheme Execution Ordinance Entered Into Force on 1 February 2015

An amendment of the Equalisation Scheme Execution Ordinance  (AusglMechAV) has entered into force on 1 February. The revision intends to enhance the efficiency and transparency of renewable power that is sold by the transmission system operators (TSOs). The aim is to lower costs for electricity consumers who have to pay a renewable surcharge that increases the electricity price.

1. General Information

The amendment was prepared by the German grid regulator, the Federal Network Agency (BNetzA), together with the Economics and Energy Ministry (BMWi). Pursuant to the Equalisation Scheme Ordinance (AusglMechV), on which the AusglMechAV builds, TSOs have to sell renewable energy fed into their networks for which the operators are entitled to claim fixed feed-in tariffs at the spot market (cf. Section 2 AusglMechV; please note that with the latest amendment of the Renewable Energy Sources Act, EEG 2014, new renewable power plants mostly have to sell their electricity themselves, for more information, please click here).

2. Important Changes

Below we highlight the main changes.

a. Possibility to Use Quarter Hour Trading

The amendment provides the possibility for the TSOs to use quarter hour trading, which the energy exchanges EXXA and EPEX Spot have started to offer since last year. This shall render the sale of volatile renewable energy more efficient and help lower EEG related costs for consumers.

b. Amendment of Incentive Provision for TSOs

Section 7 AusglMechAV that provides for a bonus for TSOs who efficiently sell renewable energy at the power exchanges has been amended so as to reflect the new marketing option described above. At the same time the reference value (Vergleichswert) needed to establish whether or not a bonus is paid has been adapted.

c. Possibility to Set Price Limit If Prices at the Exchanges are Negative

Under the previous version of AusglMechAV Section 8, according to which price limits can be set when power prices at the exchanges are negative, was set to expire on 28 February 2015. This time limit has been abolished. Despite the fact that more renewable energy will have to be sold by the operators themselves under the EEG 2014, consumers will have to be protected against the effects of negative prices below -150 €/MWh, the explanatory memorandum says. Besides the provision has been adapted to the new marketing  provisions and supplemented to provide for a special situation that might arise in the course of cross-border market-coupling (so-called partial decoupling).

d. More Transparency

Transparency will also increase as the reporting obligations of the TSOs reflect the new marketing options (cf. Section 2 AusglMechAV), BNetzA says.

Source: Federal Network Agency

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