Commission Regulation (EU) 2017/2195 of 23 November 2017 establishing a guideline on electricity balancing (Text with EEA relevance. )

TITLE I GENERAL PROVISIONS

Article 1

Subject matter and scope

Article 2

Definitions

For the purposes of this Regulation, the definitions in Article 2 of Directive 2009/72/EC, Article 2 of Regulation (EC) No 714/2009, Article 2 of Commission Regulation (EU) No 543/2013 ([^E0001]), Article 2 of Commission Regulation (EU) 2015/1222 ([^E0002]), Article 2 of Commission Regulation (EU) 2016/631 ([^E0003]), Article 2 of Commission Regulation (EU) 2016/1388 ([^E0004]), Article 2 of Commission Regulation (EU) 2016/1447 ([^E0005]), Article 2 of Commission Regulation (EU) 2016/1719 ([^E0006]), Article 3 of Commission Regulation (EU) 2017/1485, and Article 3 of Commission Regulation (EU) 2017/2196 ([^E0007]) shall apply.

The following definitions shall also apply:

• (1) ‘balancing’ means all actions and processes, on all timelines, through which TSOs ensure, in a continuous way, the maintenance of system frequency within a predefined stability range as set out in Article 127 of Regulation (EU) 2017/1485, and compliance with the amount of reserves needed with respect to the required quality, as set out in Part IV Title V, Title VI and Title VII of Regulation (EU) 2017/1485;

• (2) ‘balancing market’ means the entirety of institutional, commercial and operational arrangements that establish market-based management of balancing;

• (3) ‘balancing services’ means balancing energy or balancing capacity, or both;

• (4) ‘balancing energy’ means energy used by TSOs to perform balancing and provided by a balancing service provider;

• (5) ‘balancing capacity’ means a volume of reserve capacity that a balancing service provider has agreed to hold and in respect to which the balancing service provider has agreed to submit bids for a corresponding volume of balancing energy to the TSO for the duration of the contract;

• (6) ‘balancing service provider’ means a market participant with reserve-providing units or reserve-providing groups able to provide balancing services to TSOs;

• (7) ‘balance responsible party’ means a market participant or its chosen representative responsible for its imbalances;

• (8) ‘imbalance’ means an energy volume calculated for a balance responsible party and representing the difference between the allocated volume attributed to that balance responsible party and the final position of that balance responsible party, including any imbalance adjustment applied to that balance responsible party, within a given imbalance settlement period;

• (9) ‘imbalance settlement’ means a financial settlement mechanism for charging or paying balance responsible parties for their imbalances;

• (10) ‘imbalance settlement period’ means the time unit for which balance responsible parties' imbalance is calculated;

• (11) ‘imbalance area’ means the area in which an imbalance is calculated;

• (12) ‘imbalance price’ means the price, be it positive, zero or negative, in each imbalance settlement period for an imbalance in each direction;

• (13) ‘imbalance price area’ means the area for the calculation of an imbalance price;

• (14) ‘imbalance adjustment’ means an energy volume representing the balancing energy from a balancing service provider and applied by the connecting TSO for an imbalance settlement period to the concerned balance responsible parties, used for the calculation of the imbalance of these balance responsible parties;

• (15) ‘allocated volume’ means an energy volume physically injected or withdrawn from the system and attributed to a balance responsible party, for the calculation of the imbalance of that balance responsible party;

• (16) ‘position’ means the declared energy volume of a balance responsible party used for the calculation of its imbalance;

• (17) ‘self-dispatching model’ means a scheduling and dispatching model where the generation schedules and consumption schedules as well as dispatching of power generating facilities and demand facilities are determined by the scheduling agents of those facilities;

• (18) ‘central dispatching model’ means a scheduling and dispatching model where the generation schedules and consumption schedules as well as dispatching of power generating facilities and demand facilities, in reference to dispatchable facilities, are determined by a TSO within the integrated scheduling process;

• (19) ‘integrated scheduling process’ means an iterative process that uses at least integrated scheduling process bids that contain commercial data, complex technical data of individual power generating facilities or demand facilities and explicitly includes the start-up characteristics, the latest control area adequacy analysis and the operational security limits as an input to the process;

• (20) ‘integrated scheduling process gate closure time’ means the point in time when the submission or the update of integrated scheduling process bids is no longer permitted for the given iterations of the integrated scheduling process;

• (21) ‘TSO-TSO model’ means a model for the exchange of balancing services where the balancing service provider provides balancing services to its connecting TSO, which then provides these balancing services to the requesting TSO;

• (22) ‘connecting TSO’ means the TSO that operates the scheduling area in which balancing service providers and balance responsible parties shall be compliant with the terms and conditions related to balancing;

• (23) ‘exchange of balancing services’ means either or both exchange of balancing energy and exchange of balancing capacity;

• (24) ‘exchange of balancing energy’ means the activation of balancing energy bids for the delivery of balancing energy to a TSO in a different scheduling area than the one in which the activated balancing service provider is connected;

• (25) ‘exchange of balancing capacity’ means the provision of balancing capacity to a TSO in a different scheduling area than the one in which the procured balancing service provider is connected;

• (26) ‘transfer of balancing capacity’ means a transfer of balancing capacity from the initially contracted balancing service provider to another balancing service provider;

• (27) ‘balancing energy gate closure time’ means the point in time when submission or update of a balancing energy bid for a standard product on a common merit order list is no longer permitted;

• (28) ‘standard product’ means a harmonised balancing product defined by all TSOs for the exchange of balancing services;

• (29) ‘preparation period’ means the period between the request by the connecting TSO in case of TSO-TSO model or by the contracting TSO in case of TSO-BSP model and the start of the ramping period;

• (30) ‘full activation time’ means the period between the activation request by the connecting TSO in case of TSO-TSO model or by the contracting TSO in case of TSO-BSP model and the corresponding full delivery of the concerned product;

• (31) ‘deactivation period’ means the period for ramping from full delivery to a set point, or from full withdrawal back to a set point;

• (32) ‘delivery period’ means the period of delivery during which the balancing service provider delivers the full requested change of power in-feed to, or the full requested change of withdrawals from the system;

• (33) ‘validity period’ means the period when the balancing energy bid offered by the balancing service provider can be activated, where all the characteristics of the product are respected. The validity period is defined by a start time and an end time;

• (34) ‘mode of activation’ means the mode of activation of balancing energy bids, manual or automatic, depending on whether balancing energy is triggered manually by an operator or automatically in a closed-loop manner;

• (35) ‘divisibility’ means the possibility for a TSO to use only part of the balancing energy bids or balancing capacity bids offered by the balancing service provider, either in terms of power activation or time duration;

• (36) ‘specific product’ means a product different from a standard product;

• (37) ‘common merit order list’ means a list of balancing energy bids sorted in order of their bid prices, used for the activation of those bids;

• (38) ‘TSO energy bid submission gate closure time’ means the latest point in time when a connecting TSO can forward the balancing energy bids received from a balancing service provider to the activation optimisation function;

• (39) ‘activation optimisation function’ means the function of operating the algorithm applied to optimise the activation of balancing energy bids;

• (40) ‘imbalance netting process function’ means the role to operate the algorithm applied for operating the imbalance netting process;

• (41) ‘TSO-TSO settlement function’ means the function of performing the settlement of cooperation processes between the TSOs;

• (42) ‘capacity procurement optimisation function’ means the function of operating the algorithm applied for the optimisation of the procurement of balancing capacity for TSOs exchanging balancing capacity.

• (43) ‘TSO-BSP model’ means a model for the exchange of balancing services where the balancing service provider provides balancing services directly to the contracting TSO, which then provides these balancing services to the requesting TSO;

• (44) ‘contracting TSO’ means the TSO that has contractual arrangements for balancing services with a balancing service provider in another scheduling area;

• (45) ‘requesting TSO’ means the TSO that requests the delivery of balancing energy.

Article 3

Objectives and regulatory aspects

• (a) fostering effective competition, non-discrimination and transparency in balancing markets;

• (b) enhancing efficiency of balancing as well as efficiency of European and national balancing markets;

• (c) integrating balancing markets and promoting the possibilities for exchanges of balancing services while contributing to operational security;

• (d) contributing to the efficient long-term operation and development of the electricity transmission system and electricity sector in the Union while facilitating the efficient and consistent functioning of day-ahead, intraday and balancing markets;

• (e) ensuring that the procurement of balancing services is fair, objective, transparent and market-based, avoids undue barriers to entry for new entrants, fosters the liquidity of balancing markets while preventing undue distortions within the internal market in electricity;

• (f) facilitating the participation of demand response including aggregation facilities and energy storage while ensuring they compete with other balancing services at a level playing field and, where necessary, act independently when serving a single demand facility;

• (g) facilitating the participation of renewable energy sources and support the achievement of the European Union target for the penetration of renewable generation.

• (a) apply the principles of proportionality and non-discrimination;

• (b) ensure transparency;

• (c) apply the principle of optimisation between the highest overall efficiency and lowest total costs for all parties involved;

• (d) ensure that TSOs make use of market-based mechanisms, as far as possible, in order to ensure network security and stability;

• (e) ensure that the development of the forward, day-ahead and intraday markets is not compromised;

• (f) respect the responsibility assigned to the relevant TSO in order to ensure system security, including as required by national legislation;

• (g) consult with relevant DSOs and take account of potential impacts on their system;

• (h) take into consideration agreed European standards and technical specifications.

Article 4

Terms and conditions or methodologies of TSOs

• (a) TSOs representing at least 55 % of the Member States; and

• (b) TSOs representing Member States comprising at least 65 % of the population of the Union.

A blocking minority for decisions on proposals for terms and conditions or methodologies listed in Article 5(2) shall include TSOs representing at least four Member States, failing of which the qualified majority shall be deemed attained.

• (a) TSOs representing at least 72 % of the Member States concerned; and

• (b) TSOs representing Member States comprising at least 65 % of the population of the concerned area.

A blocking minority for decisions on proposals for terms and conditions or methodologies listed in Article 5(3) shall include at least a minimum number of TSOs representing more than 35 % of the population of the participating Member States, plus TSOs representing at least one additional Member State concerned, failing of which the qualified majority shall be deemed attained.

Article 5

Approval of terms and conditions or methodologies of TSOs

• (a) the frameworks for the establishment of the European platforms pursuant to Articles 20(1), 21(1) and 22(1);

• (b) the modifications of the frameworks for the establishment of the European platforms pursuant to Articles 20(5) and 21(5);

• (c) the standard products for balancing capacity pursuant to Article 25(2);

• (d) the classification methodology for the activation purposes of balancing energy bids pursuant to Article 29(3);

• (e) the assessment on the possible increase of the minimum volume of balancing energy bids that shall be forwarded to the European platforms pursuant to Article 29(11);

• (f) the methodologies for pricing balancing energy and cross-zonal capacity used for the exchange of balancing energy or operating the imbalance netting process pursuant to Article 30(1) and (5);

• (g) the harmonisation of the methodology for the allocation process of cross-zonal capacity for the exchange of balancing capacity or sharing of reserves pursuant to Article 38(3);

• (h) the methodology for a co-optimised allocation process of cross-zonal capacity pursuant to Article 40(1);

• (i) the TSO-TSO settlement rules for the intended exchange of energy pursuant to Article 50(1);

• (j) the harmonisation of the main features of imbalance settlement pursuant to Article 52(2).

A Member State may provide an opinion to the concerned regulatory authority on the proposals for the terms and conditions or methodologies listed in the first subparagraph.

• (a) the framework, for the geographical area concerning all TSOs performing the reserve replacement process pursuant to Part IV of Regulation (EU) 2017/1485, for the establishment of the European platform for replacement reserves pursuant to Article 19(1);

• (b) for the geographical area concerning two or more TSOs exchanging or mutually willing to exchange balancing capacity, the establishment of common and harmonised rules and process for the exchange and procurement of balancing capacity pursuant to Article 33(1);

• (c) for the geographical area covering TSOs exchanging balancing capacity, the methodology for calculating the probability of available cross-zonal capacity after intraday cross-zonal gate closure time pursuant to Article 33(6);

• (d) the exemption, for the geographical area in which the procurement of balancing capacity has taken place, for not allowing balancing service providers to transfer their obligations to provide balancing capacity pursuant to Article 34(1);

• (e) the application of a TSO-BSP model, in a geographical area comprising two or more TSOs, pursuant to Article 35(1);

• (f) the cross-zonal capacity calculation methodology for each capacity calculation region pursuant to Article 37(3);

• (g) in a geographical area comprising two or more TSOs, the application of the allocation process of cross-zonal capacity for the exchange of balancing capacity or sharing of reserves pursuant to Article 38(1);

• (h) for each capacity calculation region, the methodology for a market-based allocation process of cross-zonal capacity pursuant to Article 41(1);

• (i) for each capacity calculation region, the methodology for an allocation process of cross-zonal capacity based on an economic efficiency analysis and the list of each individual allocation of cross-zonal capacity based on an economic efficiency analysis pursuant to Article 42(1) to (5);

• (j) for the geographical area comprising all TSOs intentionally exchanging energy within a synchronous area, the TSO-TSO settlement rules for the intended exchange of energy pursuant to Article 50(3);

• (k) for the geographical area comprising all asynchronously connected TSOs intentionally exchanging energy, the TSO-TSO settlement rules for the intended exchange of energy pursuant to Article 50(4);

• (l) for each synchronous area, the TSO-TSO settlement rules for the unintended exchange of energy pursuant to Article 51(1);

• (m) for the geographical area comprising all asynchronously connected TSOs, the TSO-TSO settlement rules for the unintended exchange of energy pursuant to Article 51(2);

• (n) the exemption, at synchronous area level, to the harmonisation of the imbalance settlement periods pursuant to Article 53(2);

• (o) for the geographical area comprising two or more TSOs exchanging balancing capacity, the principles for balancing algorithms pursuant to Article 58(3).

A Member State may provide an opinion to the concerned regulatory authority on the proposals for the terms and conditions or methodologies listed in the first subparagraph.

• (a) the exemption to publish information on offered prices of balancing energy or balancing capacity bids due to market abuse concerns pursuant to Article 12(4);

• (b) where appropriate, the methodology for allocating costs resulting from actions taken by DSOs, pursuant to Article 15(3);

• (c) the terms and conditions related to balancing pursuant to Article 18;

• (d) the definition and the use of specific products pursuant to Article 26(1);

• (e) the limitation on the amount of bids that is forwarded to the European platforms pursuant to Article 29(10);

• (f) the exemption to separate procurement of upward and downward balancing capacity pursuant to Article 32(3);

• (g) where appropriate, the additional settlement mechanism separate from the imbalance settlement, to settle the procurement costs of balancing capacity, administrative costs and other costs related to balancing with balance responsible parties pursuant to Article 44(3);

• (h) the derogations to one or more provisions of this Regulation pursuant to Article 62(2);

• (i) the costs relating to the obligations imposed on system operators or assigned third entities in accordance with this Regulation pursuant to Article 8(1).

A Member State may provide an opinion to the concerned regulatory authority on the proposals for the terms and conditions or methodologies listed in the first subparagraph.

Article 6

Amendments to terms and conditions or methodologies of TSOs

Article 7

Publication of terms and conditions or methodologies on the internet

TSOs responsible for establishing the terms and conditions or methodologies in accordance with this Regulation shall publish them on the internet following approval by the Agency or the relevant regulatory authorities or, where no such approval is required, following their establishment, except where such information is considered as confidential in accordance with Article 11.

Article 8

Recovery of costs

Article 9

Stakeholder involvement

The Agency, in close cooperation with ENTSO-E, shall organise stakeholder involvement regarding the balancing market and other aspects of the implementation of this Regulation. Such involvement shall include regular meetings with stakeholders to identify problems and propose improvements related to the integration of the balancing market.

Article 10

Public consultation

Article 11

Confidentiality obligations

Article 12

Publication of information

• (a) information on the current system balance of its scheduling area or scheduling areas, as soon as possible but no later than 30 minutes after real-time;

• (b) information on all balancing energy bids from its scheduling area or scheduling areas, anonymised where necessary, no later than 30 min after the end of the relevant market time unit. The information shall include:
• (i) type of product;
• (ii) validity period;
• (iii) offered volumes;
• (iv) offered prices;
• (v) information on whether the bid was declared as unavailable;

• (c) information on whether the balancing energy bid was converted from a specific product or from an integrated scheduling process no later than 30 min after the end of the relevant market time unit;

• (d) information regarding how balancing energy bids from specific products or from integrated scheduling process have been converted into balancing energy bids from standard products no later than 30 min after the end of the relevant market time unit;

• (e) aggregated information on balancing energy bids no later than 30 min after the end of the relevant market time unit, which shall include:
• (i) total volume of offered balancing energy bids;
• (ii) total volume of offered balancing energy bids separately per type of reserves;
• (iii) total volume of offered and activated balancing energy bids separately for standard and specific products;
• (iv) volume of unavailable bids separately per type of reserves;

• (f) information on offered volumes as well as offered prices of procured balancing capacity, anonymised where necessary, no later than one hour after the results of the procurement have been notified to the bidders;

• (g) the initial terms and conditions related to balancing referred to in Article 18 at least one month before the application and any amendments to the terms and conditions immediately following approval by the relevant regulatory authority in accordance with Article 37 of Directive 2009/72/EC;

• (h) information on the allocation of cross-zonal capacity for the exchange of balancing capacity or sharing of reserves pursuant to Article 38 at the latest 24 hours after the allocation and no later than 6 hours before the use of the allocated cross-zonal capacity:
• (i) date and time when the decision on allocation was made;
• (ii) period of the allocation;
• (iii) volumes allocated;
• (iv) market values used as a basis for the allocation process in accordance with Article 39;

• (i) information on the use of allocated cross-zonal capacity for the exchange of balancing capacity or sharing of reserves pursuant to Article 38 at the latest one week after the use of allocated cross-zonal capacity:
• (i) volume of allocated and used cross-zonal capacity per market time unit;
• (ii) volume of released cross-zonal capacity for subsequent timeframes per market time unit;
• (iii) estimated realised costs and benefits of the allocation process;

• (j) approved methodologies referred to in Articles 40, 41 and 42 at least one month before the application;

• (k) description of the requirements of any algorithm developed and amendments to it referred to in Article 58, at least one month before the application;

• (l) common annual report referred to in Article 59.

Article 13

Delegation and assignment of tasks

TITLE II ELECTRICITY BALANCING MARKET

CHAPTER 1 Functions and responsibilities

Article 14

Role of the TSOs

Article 15

Cooperation with DSOs

Article 16

Role of balancing service providers

Article 17

Role of balance responsible parties

Article 18

Terms and conditions related to balancing

• (a) the terms and conditions for balancing service providers;

• (b) the terms and conditions for balance responsible parties.

Where a LFC area consists of two or more TSOs, all TSOs of that LFC area may develop a common proposal subject to the approval by the relevant regulatory authorities.

• (a) coordinate with the TSOs and DSOs that may be affected by those terms and conditions;

• (b) respect the frameworks for the establishment of European platforms for the exchange of balancing energy and for the imbalance netting process pursuant to Articles 19, 20, 21 and 22;

• (c) involve other DSOs and other stakeholders throughout the development of the proposal and take into account their views without prejudice to public consultation pursuant to Article 10.

• (a) define reasonable and justified requirements for the provisions of balancing services;

• (b) allow the aggregation of demand facilities, energy storage facilities and power generating facilities in a scheduling area to offer balancing services subject to conditions referred to in paragraph 5 (c);

• (c) allow demand facility owners, third parties and owners of power generating facilities from conventional and renewable energy sources as well as owners of energy storage units to become balancing service providers;

• (d) require that each balancing energy bid from a balancing service provider is assigned to one or more balance responsible parties to enable the calculation of an imbalance adjustment pursuant to Article 49.

• (a) the rules for the qualification process to become a balancing service provider pursuant to Article 16;

• (b) the rules, requirements and timescales for the procurement and transfer of balancing capacity pursuant to Articles 32, 33 and 34;

• (c) the rules and conditions for the aggregation of demand facilities, energy storage facilities and power generating facilities in a scheduling area to become a balancing service provider;

• (d) the requirements on data and information to be delivered to the connecting TSO and, where relevant, to the reserve connecting DSO during the prequalification process and operation of the balancing market;

• (e) the rules and conditions for the assignment of each balancing energy bid from a balancing service provider to one or more balance responsible parties pursuant to paragraph 4 (d);

• (f) the requirements on data and information to be delivered to the connecting TSO and, where relevant, to the reserve connecting DSO to evaluate the provisions of balancing services pursuant to Article 154(1), Article 154(8), Article 158(1)(e), Article 158(4)(b), Article 161(1)(f) and Article 161(4)(b) of Regulation (EU) 2017/1485;

• (g) the definition of a location for each standard product and each specific product taking into account paragraph 5 (c);

• (h) the rules for the determination of the volume of balancing energy to be settled with the balancing service provider pursuant to Article 45;

• (i) the rules for the settlement of balancing service providers defined pursuant to Chapters 2 and 5 of Title V;

• (j) a maximum period for the finalisation of the settlement of balancing energy with a balancing service provider in accordance with Article 45, for any given imbalance settlement period;

• (k) the consequences in case of non-compliance with the terms and conditions applicable to balancing service providers.

• (a) the definition of balance responsibility for each connection in a way that avoids any gaps or overlaps in the balance responsibility of different market participants providing services to that connection;

• (b) the requirements for becoming a balance responsible party;

• (c) the requirement that all balance responsible parties shall be financially responsible for their imbalances, and that the imbalances shall be settled with the connecting TSO;

• (d) the requirements on data and information to be delivered to the connecting TSO to calculate the imbalances;

• (e) the rules for balance responsible parties to change their schedules prior to and after the intraday energy gate closure time pursuant to paragraphs 3 and 4 of Article 17;

• (f) the rules for the settlement of balance responsible parties defined pursuant to Chapter 4 of Title V;

• (g) the delineation of an imbalance area pursuant to Article 54(2) and an imbalance price area;

• (h) a maximum period for the finalisation of the settlement of imbalances with balance responsible parties for any given imbalance settlement period pursuant to Article 54;

• (i) the consequences in case of non-compliance with the terms and conditions applicable to balance responsible parties;

• (j) an obligation for balance responsible parties to submit to the connecting TSO any modifications of the position;

• (k) the settlement rules pursuant to Articles 52, 53, 54 and 55;

• (l) where existing, the provisions for the exclusion of imbalances from the imbalance settlement when they are associated with the introduction of ramping restrictions for the alleviation of deterministic frequency deviations pursuant to Article 137(4) of Regulation (EU) 2017/1485.

• (a) a requirement for balancing service providers to provide information on unused generation capacity and other balancing resources from balancing service providers, after the day-ahead market gate closure time and after the intraday cross-zonal gate closure time;

• (b) where justified, a requirement for balancing service providers to offer the unused generation capacity or other balancing resources through balancing energy bids or integrated scheduling process bids in the balancing markets after day ahead market gate closure time, without prejudice to the possibility of balancing service providers to change their balancing energy bids prior to the balancing energy gate closure time or the integrated scheduling process gate closure time due to trading within intraday market;

• (c) where justified, a requirement for balancing service providers to offer the unused generation capacity or other balancing resources through balancing energy bids or integrated scheduling process bids in the balancing markets after intraday cross-zonal gate closure time;

• (d) specific requirements with regard to the position of balance responsible parties submitted after the day-ahead market timeframe to ensure that the sum of their internal and external commercial trade schedules equals the sum of the physical generation and consumption schedules, taking into account electrical losses compensation, where relevant;

• (e) an exemption to publish information on offered prices of balancing energy or balancing capacity bids due to market abuse concerns pursuant to Article 12(4);

• (f) an exemption for specific products defined in Article 26(3)(b) to predetermine the price of the balancing energy bids from a balancing capacity contract pursuant to Article 16(6);

• (g) an application for the use of dual pricing for all imbalances based on the conditions established pursuant to Article 52(2)(d)(i) and the methodology for applying dual pricing pursuant to Article 52(2)(d)(ii).

• (a) the integrated scheduling process gate closure time pursuant to Article 24(5);

• (b) the rules for updating the integrated scheduling process bids after each integrated scheduling process gate closure time pursuant to Article 24(6);

• (c) the rules for using integrated scheduling process bids prior to the balancing energy gate closure time pursuant to Article 24(7);

• (d) the rules for converting integrated scheduling process bids pursuant to Article 27.

CHAPTER 2 European platforms for the exchange of balancing energy

Article 19

European platform for the exchange of balancing energy from replacement reserves

• (a) the high level design of the European platform;

• (b) the roadmap and timelines for the implementation of the European platform;

• (c) the definition of the functions required to operate the European platform;

• (d) the proposed rules concerning the governance and operation of the European platform, based on the principle of non-discrimination and ensuring equitable treatment of all member TSOs and that no TSO benefits from unjustified economic advantages through the participation in the functions of the European platform;

• (e) the proposed designation of the entity or entities that will perform the functions defined in the proposal. Where the TSOs propose to designate more than one entity, the proposal shall demonstrate and ensure:
• (i) a coherent allocation of the functions to the entities operating the European platform. The proposal shall take full account of the need to coordinate the different functions allocated to the entities operating the European platform;
• (ii) that the proposed setup of the European platform and allocation of functions ensures efficient and effective governance, operation and regulatory oversight of the European platform as well as, supports the objectives of this Regulation;
• (iii) an effective coordination and decision making process to resolve any conflicting positions between entities operating the European platform;

• (f) the framework for harmonisation of the terms and conditions related to balancing set up pursuant to Article 18;

• (g) the detailed principles for sharing the common costs, including the detailed categorisation of common costs, in accordance with Article 23;

• (h) the balancing energy gate closure time for all standard products for replacement reserves in accordance with Article 24;

• (i) the definition of standard products for balancing energy from replacement reserves in accordance with Article 25;

• (j) the TSO energy bid submission gate closure time in accordance with Article 29( 13);

• (k) the common merit order lists to be organised by the common activation optimisation function pursuant to Article 31;

• (l) the description of the algorithm for the operation of the activation optimisation function for the balancing energy bids from all standard products for replacement reserves in accordance with Article 58.

• (a) submit all balancing energy bids from all standard products for replacement reserves;

• (b) exchange all balancing energy bids from all standard products for replacement reserves, except for unavailable bids pursuant to Article 29(14);

• (c) strive to fulfil all their needs for balancing energy from replacement reserves.

Article 20

European platform for the exchange of balancing energy from frequency restoration reserves with manual activation

• (a) the high level design of the European platform;

• (b) the roadmap and timelines for the implementation of the European platform;

• (c) the definition of the functions required to operate the European platform;

• (d) the proposed rules concerning the governance and operation of the European platform, based on the principle of non-discrimination and ensuring equitable treatment of all member TSOs and that no TSO benefits from unjustified economic advantages through the participation in the functions of the European platform;

• (e) the proposed designation of the entity or entities that will perform the functions defined in the proposal. Where the TSOs propose to designate more than one entity, the proposal shall demonstrate and ensure:
• (i) a coherent allocation of the functions to the entities operating the European platform. The proposal shall take full account of the need to coordinate the different functions allocated to the entities operating the European platform;
• (ii) that the proposed setup of the European platform and allocation of functions ensures efficient and effective governance, operation and regulatory oversight of the European platform as well as, supports the objectives of this Regulation;
• (iii) an effective coordination and decision making process to resolve any conflicting positions between entities operating the European platform;

• (f) the framework for harmonisation of the terms and conditions related to balancing set up pursuant to Article 18;

• (g) the detailed principles for sharing the common costs, including the detailed categorisation of common costs, in accordance with Article 23;

• (h) the balancing energy gate closure time for all standard products for frequency restoration reserves with manual activation in accordance with Article 24;

• (i) the definition of standard products for balancing energy from frequency restoration reserves with manual activation in accordance with Article 25;

• (j) the TSO energy bid submission gate closure time in accordance with Article 29( 13);

• (k) the common merit order lists to be organised by the common activation optimisation function pursuant to Article 31;

• (l) the description of the algorithm for the operation of the activation optimisation function for the balancing energy bids from all standard products for frequency restoration reserves with manual activation in accordance with Article 58.

• (a) submit all balancing energy bids from all standard products for frequency restoration reserves with manual activation;

• (b) exchange all balancing energy bids from all standard products for frequency restoration reserves with manual activation, except for unavailable bids pursuant to Article 29(14);

• (c) strive to fulfil all their needs for balancing energy from the frequency restoration reserves with manual activation.

Article 21

European platform for the exchange of balancing energy from frequency restoration reserves with automatic activation

• (a) the high level design of the European platform;

• (b) the roadmap and timelines for the implementation of the European platform;

• (c) the definition of the functions required to operate the European platform;

• (d) the proposed rules concerning the governance and operation of the European platform, based on the principle of non-discrimination and ensuring equitable treatment of all member TSOs and that no TSO benefits from unjustified economic advantages through the participation in the functions of the European platform;