30.4.2014 13:00
Current News, Electricity Market

Implementation of a Nordic Balance Settlement in 2015 - 2016

Nordic Balance Settlement (NBS) will become operative stepwise starting from November 2015. Finland will be the first to implement it in November to be followed by Sweden and Norway in February 2016. A new milestone has been reached as the industry preparation can begin. The Transmission System Operators (TSOs) Fingrid, Statnett and Svenska kraftnät have already established a joint service company, eSett Oy, which will operate the settlement process. The settlement mechanism will be based on an equal framework of settlement principles and practices which partly differ from those in use now. A stepwise country-by-country implementation will allow a smooth and secure transition from the current three systems into one.

- We are pleased that the required legislative frameworks to establish a common balance settlement in Finland, Sweden and Norway are underway, and are confident that they will be in place in time for the introduction of the Nordic Balance Settlement, says Minnakaisa Ahonen, Project Manager of the NBS project.

The NBS project has recently launched a handbook which aims to facilitate the market parties’ understanding, as well as their implementation, of the new model. In addition, the TSOs have arranged an information day targeting the industry in each country in order to start the industry preparation.

For more information, please contact:
Project Manager NBS and CEO eSett: Minnakaisa Ahonen, tel +358 (0) 30 395 5257
Fingrid:    Pasi Aho, tel. +358 (0)30 395 5262
Svenska kraftnät:   Tania Pinzón, tel +46(0)10 475 82 88
Statnett:    Kristian Bernseter, tel +47 917 11 627

Balance settlement

The purpose of balance settlement is to establish an economical balance in the electricity market. Power balances are calculated for each balance responsible party based on their plans/trades and consumption/production. Each party is financially responsible for its imbalance.

The objective of a common balance settlement and a common service company is to lower the entry barriers for the market parties in Finland, Norway and Sweden, increase competition in the electricity markets, reduce long term costs for the market parties and pave the way for the establishment of a Nordic end-user market. Statnett, Svenska kraftnät and Fingrid have through the joint NBS project agreed on a settlement framework and are in the progress of modelling a new settlement system.