High prices on balancing market

Yesterday, 7 March 2021, there were two balancing actions at 8:21 LET and 9:21 LET in the Dutch balancing regime where GTS bought all the offered volume for the Nexthour product that was available. The effect was that the weighted average prices for these transactions were quite remarkable, approximately 410 and 1414 EUR/MWh. The volume bought by GTS is reallocated to the causers of the imbalance at this average price.

The best way to protect you from being exposed to these remarkable prices is to keep your POS close to zero (or opposite of the SBS). This will also help in preventing balancing actions to happen in the first place.

The balancing regime is based on near-real time information about the cumulative balancing position of every shipper (portfolio imbalance signal or POS) and of the system (system balance signal or SBS) as a whole. The SBS is equivalent to the sum total of all POSs and reflects the balancing position of the network system.

The working of the balancing regime is explained on these pages on our website. Balancing actions are explained in more detail here.