EU legislation directly impacting on the BSC
This page is a repository of European Union legislation that directly impacts on the BSC systems and processes.
On this page
Below you will find copies of REMIT and the REMIT Implementing Act, and the Electricity Balancing Guideline, amongst other legislation.
Departure from the European Union
The Trade and Cooperation Agreement between the EU and UK came into force on 1 January 2021. It was agreed on 24 December 2020 and published on 27 December 2020. We are still analysing the detail, and will update this page shortly.
ETR and REMIT data after 2020
When the transition period ends at 2300 on 31 December 2020, we will no longer be required to report to the European Transparency Regulation (ETR) or European Regulation on Energy Market Integrity and Transparency (REMIT). This is regardless of whether a future partnership agreement is reached between the UK and the EU,
European Network Codes Implementation Plan
The anticipated impacts of European Union legislation on the BSC are included in cross-code European Network Codes Implementation Plan, which is updated on a monthly basis, and published on this webpage.
Third party market operators in Europe
Europex, the Association of European Energy Exchanges, of which Elexon is a member, has produced the following paper.
- Europex: The Essential Tasks of Third Party Market Operators in the Electricity Market (August 2018)
It explains how certain functions in the EU/EEA electricity market are carried out by Third Parties (companies independent from their national Transmission System Operator) whose roles are recognised in the European Network Codes and Guidelines.
Elexon is listed as the Third Party Market Operator/Facilitator for Great Britain.
European Electricity Balancing Guideline
The main impact of EU developments on the BSC will come from the legally-binding European Electricity Balancing Guideline (EB GL), which includes balancing and imbalance settlement within its scope.
Article 18 terms and conditions
On 20 February 2020, in accordance with Article 13 (1), National Grid Electricity System Operator (NGESO) as the GB Transmission System Operator (TSO) delegated some of its tasks related to Articles 4, 6, 10 and 12 to Elexon as the BSCCo and BSC Panel.
These delegated tasks relate to the amendment, pursuant to Article 6(3)of the EBGL, of those EBGL Article 18 terms and conditions that are comprised in the BSC.
For further information see:
Implementation and impact
In accordance with Article 13(4) of the Electricity Balancing Guideline, the Secretary of State may assign certain electricity balancing tasks or obligations set out in the Electricity Balancing Guideline that would otherwise have to be performed by the GB System Operator, National Grid, to one or more third parties.
The Secretary of State has assigned to BSCCo (Elexon) and the BSC Clearer (Elexon Clear) the tasks identified in this formal notice of assignment.
- BEIS notice of assignment for the Implementation of the Electricity Balancing Guideline (18 December 2017)
Following assignment from BEIS, we requested derogation from aspects of the EB GL to enable more efficient changes to the BSC. The derogation was rejected by Ofgem on the grounds that there is not sufficient evidence to determine a non-compliance for the stated concern.
- Derogation Request from Article 55 of the European Electricity Balancing Guideline (18 December 2017)
- Ofgem Decision on Derogation Request from Article 55 of the European Electricity Balancing Guideline (10 May 2018)
The EB GL entered into force on 18 December 2017 and will drive changes to the BSC.
- European Commission – Electricity network codes and guidelines
- European Commission – Electricity Balancing Guideline entered into force on 18 December 2017
European Network Code on Emergency and Restoration
The European Network Code on Emergency and Restoration (NC ER) has the potential to impact on the Black Start provisions of the BSC Section G.
The relevant parts of the NC ER are in Chapter IV (Market Interactions) starting at Article 35.
The NC ER entered into force on 18 December 2017.
- European Commission: Network Code on Emergency and Restoration
- European Commission: Electricity network codes and guidelines
This is the EU Regulation on wholesale energy market integrity and transparency (REMIT).
After leaving the EU
After the UK leaves the EU, we expect the Agency for the Cooperation of Energy Regulators (ACER) will stop pulling REMIT data – but in the short term we do not plan on decommissioning the Atom web feed ACER uses to collect REMIT data.
Impact on BMRS
There will be no impact on BMRS, and market participants won’t have to do anything different when accessing BMRS. All REMIT data will still be published as it is now in GB.
Plans for 2021
Ofgem expect the REMIT arrangements that will apply in GB from 1 January 2021 will be consistent with the arrangements set out in their ‘No-deal’ EU exit REMIT contingency arrangements.
More information about REMIT arrangements, how Ofgem will monitor the market going forward, and whether market participants need to re-register can be found in Ofgem’s open letter.
Further information on REMIT
- REMIT Portal of the Agency for the Coordination of Energy Regulators (ACER)
The European Transparency Regulation
This requires primary data owners to submit specific information related to the electricity sector to their Transmission System Operator, or a third party acting as a data provider, for publication on a central European reporting platform.
After leaving the EU
After the UK leaves the EU, BMRS will stop pushing data to ENTSO-E, which we were previously required to do under the ETR.
Impact on BMRS
All ETR data will still be published on BMRS as it is now in GB (ETR data for GB will not be published by ENTSO-E from 1 January 2021).
- European Transparency Regulation came into force in 2013
- BSC Modification P295 – this made Elexon the GB data provider for all data that the Transmission Company is required to submit to ENTSO-E
- ENTSO-E Transparency Platform – central collection and publication of electricity data for pan-European market
- Balancing Mechanism Reporting Service (BMRS) publishes some or all of this data
The Clean Energy Package
The European Commission proposed a package of laws in late 2016 covering different aspects of the electricity market, some of which, the electricity market design laws, have the potential to impact the BSC in future.
The electricity market design laws are in force from July 2019 and were published in the Official Journal of the European Union.
Joint European Stakeholder Group
The JESG provides a single group for GB stakeholders to engage on all aspects of European Policy. JESG information can be found from the relevant links on the National Grid website.
Here you can find a wide variety of information including presentations and minutes from JESG meetings that consider the impacts and implementation of EU legislation on the GB electricity sector, and the full suite of electricity Network Codes and Guidelines.