Changes to Balancing Service Providers and Balance Responsible Parties 11/2025 - summary
Fingrid has completed and prepared upcoming changes to the terms and conditions of Reserve Suppliers and Balance Responsible Parties. All changes aim to clarify the current terms and conditions and to ensure the security of the electricity system and the operation of electricity trade in all situations This bulletin contains a November compilation of the changes. Topics are:
- Reserve changes during Q4/2025
- Consultation: Changes to BRP imbalance pricing
- Submitted for Energy Authority confirmation: ”05_2025 package”
- Consultation: Independent aggregation and MARI
In addition, Fingrid will organize a webinar on the consultation on 28 November 2025 at 9-11 am, more information on how to participate >. Language of the webinar will be Finnish; slides will be provided afterwards.
1. Changes in the mFRR Energy Market Q4/2025
The following changes have been or will be implemented in mFRR energy market by the end of 2025.
Floating Deadband Implemented in mFRR request
Fingrid has introduced a floating 50 MW deadband for determining the mFRR request sent to the Nordic mFRR energy market. The purpose of the deadband is to reduce fluctuations in mFRR request sent to the market platform and, consequently, total mFRR activations. However, it does not directly affect activations sent to reserve providers.
Algorithm Update to Prevent Illogical Price Spread
Illogical price spread has been observed in the Nordic mFRR energy market. As a result, a change has been developed in the market algorithm regarding uncongested areas and price determination. In the updated algorithm, a border is considered congested if, at any stage of the bid selection process, transmission capacity has limited bid selection.
The purpose of this change is to prevent illogical price spreads caused by the selection of indivisible bids and to minimize the number of bids that are rejected even though they should have been selected for their price (Unforeseeably Rejected Bid, URB). The bid selection logic itself remains unchanged; it still aims to satisfy balancing needs and maximize socioeconomic welfare.
This change is planned to be implemented on November 25, and a detailed description of the new algorithm will be published afterward on the Nordic TSOs’ websites. After implementation, the automatic suspension of price publication by TSOs can be discontinued, and final mFRR energy prices will be published within 30 minutes after the end of the market time period.
Real-Time Publication of mFRR Energy Prices
Fingrid will start publishing mFRR energy prices in real time at the beginning of December. The goal is to publish a preliminary price at the moment of bid activation. For scheduled activations, the price will be published 7.5 minutes before the start of the market time period, and for possible direct activations, at the moment of activation
Real-time published prices are not necessarily the final mFRR energy prices. Fingrid may suspend real-time publication if it is found to have adverse effects on power system security. The exact implementation date will be announced separately later.
2. Consultation: Changes to BRP imbalance pricing
Imbalances are priced based on the marginal prices of aFRR and mFRR reserve energy activations for each imbalance settlement period, as well as the day-ahead market price for Finland’s bidding zone.
Fingrid proposes a change where the consideration of aFRR and mFRR price components in determining the imbalance price would be modified to a joint volume-weighted average approach. In other words, the calculation of the imbalance price for each imbalance settlement period would use the volumes for both components fulfilling the balancing need in Finland’s bidding zone.
The goal is to ensure a more justified determination of system balancing costs in situations where aFRR and mFRR activations occur in different proportions relative to supply. The pricing mechanism will be reviewed again at the latest in the Nordic accession to the MARI platform and the implementation of the area control error model alongside Sweden’s and Norway’s PICASSO accession.
Estimated impact of the change:
- The imbalance price difference compared to the day-ahead market price will decrease on average.
- Imbalance costs for Balance Responsible Parties (BRPs) will decrease.
- BRPs’ collateral requirements will decrease slightly.
- Fingrid’s balance service revenue from imbalance energy trading will decrease.
- Fingrid’s balance service revenue through production, consumption, and imbalance volume fee components will increase.
The proposed change will not affect reserve energy prices or activation costs.
The proposal for changing the imbalance price determination will be presented in the BSP & BRP terms amendment webinar on 28 November 2025. The change in price determination does not require a terms amendment. Written statements are requested to be submitted to Fingrid by 21 December 2025 via email to verkkosaannot[at]fingrid.fi, with the subject line “BRP and BSP consultation 11/2025.” The attached statement form can be used when providing feedback.
3. Submitted for Energy Authority confirmation: ”05_2025 package”
Between 13 May 2025 and 12 June 2025, Fingrid held a hearing on the planned changes to the terms and conditions of balancing service providers (aFRR, FCR, FFR and mFRR) and balance responsible parties. Link to previous news: https://www.fingrid.fi/en/news/news/2025/consultation-on-changes-to-the-terms-and-conditions-of-reserve-suppliers-and-balance-responsible-parties-052025/.
The proposed amendments included corrections to contract terms, an update of the collateral model for balance responsible parties and the definition of minimum requirements for maintenance of security of supply of reserve suppliers and units.
Fingrid reviewed the feedback from the consultation and submitted the final updated terms and conditions to the Energy Authority for review on 10 November 2025. At this stage, the parties are not required to make any changes, but the parties may participate if the Energy Authority arranges a re-hearing on the matter. Fingrid thanks all its stakeholders for their active participation in the consultation.
Fingrid has proposed that the updated Terms and Conditions would enter into force within two months of the approval of the document in question by the Energy Authority, but no earlier than 1 September 2026. When the Energy Authority issues a decision on the matter, Fingrid will separately inform the parties of the schedule and content of the commissioning.
4. Consultation: Independent aggregation and MARI
Fingrid is now launching a public consultation for stakeholders regarding the content of terms and conditions for reserve providers and balance responsible parties and invites open feedback on current practices. The changes under consultation relate to joining the European mFRR energy market platform (MARI) and the introduction of the independent aggregator model in mFRR.
The revised contractual documents can be found alongside this publication in Finnish. In addition, the most significant changes with their justifications and the implementation schedule are summarized in the attached background document.
Written statements are requested to be submitted to Fingrid by December 22, 2025, via email to verkkosaannot[at]fingrid.fi, with the subject line: “BRP and BSP Consultation 11/2025.” The attached feedback form may be used when providing comments.
More information:
- aFRR: Joonas Muikku, tel. +358 30 395 4324
- BRP:
- Jukka Kakkonen, tel. +358 30 395 5334
- Pasi Lintunen, tel. +358 30 395 4291
- Heikki Raatikainen, tel. +358 30 395 4158
- Anders Lundberg (balance management), tel. +358 30 395 4171
- FCR: Taneli Leiskamo, tel. +358 30 395 5240
- FFR: Mikko Haapamäki, tel. +358 30 395 4285
- mFRR: Otso-Ville Rinne, tel. +358 30 395 4142
More information/documents:
See official documents in Finnish language version of this news publication.