National Grid Electricity System Operator (ESO) has written to Ofgem to agree to its instruction to create a new plan and workgroup for implementing the Trans European Replacement Reserves Exchange (TERRE) in Great Britain.
TERRE was originally due to go live by 15 January 2020 but the regulator has granted the ESO multiple derogations from the requirement, mostly recently until 1 January 2021, due to uncertainty over its ability to the access the Libra platform that underpins the new market following the UK’s withdrawal from the EU.
Responding to the regulator in an open letter, the ESO reaffirmed its commitment to the project, stating that: “Participation in the European RR market is an important deliverable for the ESO and GB stakeholders, with the potential to deliver benefits to GB consumers of €17m per year.”
National Grid acknowledged the frustrations expressed by stakeholders and noted by Ofgem in its letter to the ESO granting the latest derogation. It reiterated that, in addition to Brexit-related uncertainty, the body has also faced challenges around changes and maintenance to its core control systems and the resource impacts of the coronavirus pandemic.
The ESO said the implementation group will develop a new baseline assumption and alternative scenarios for the UK’s access to EU balancing platforms following Brexit, formulate a new implementation plan for TERRE based on these scenarios, develop a plan for making the required revisions to operating protocols and commercial contracts, and ensure these plans are made available to interested parties.
The group will consist of senior representatives from the ESO, Elexon, interconnector operators and other market participants affected by the work. The ESO said those parties which wish to take part should register their interest by 2020.
It said the first meeting is expected to take place during the week commencing on 23 November and subsequently be held on a weekly basis at least until Christmas.