Network Code on the Operation of the Electricity Market

This Regulation lays down

1) the requirements and rules regarding the changing of the seller;

2) the requirements concerning data exchange between market participants;

3) the rights and obligations related to the balance obligation;

4) the conditions concerning the determination of fixed and variable guarantees for balance providers;

5) the rules regarding the sale of electricity in the case of interruptions in the chain of open supply;

6) the rules for set-offs of the price of universal service, for information exchange related to universal service and for the provision of information to small consumers.

(1) The use of the terms in this Regulation follows definitions provided in § 3 of the Electricity Market Act.

(2) In addition to those referred to in subsection 1, the terms used in this Regulation are defined as follows

1) ‘EIC code’ means a unique identifying indication which is assigned to the market participant or to the metering point based on a unified coding system and which is required in order to automate the data exchange concerning market participants operating in the electricity market;

2) ‘boundary metering point’ means a metering point at the boundary between the networks of two network operators;

3) ‘virtual metering point’ means a device for determining the network losses of the network operator or the line possessor and for determining the quantities of consumption of small consumers to whom, under the relevant network contract or, in the case of a line possessor, under the contract for network use, no metering system is installed, or if energy quantities metered at different metering points need to be used in order to determine the quantity consumed.

The data exchange between market participants takes place through a data exchange platform (hereinafter, ‘DEP’). For the purposes of this Regulations, the transmission of data to the DEP means the making available of data by means of the DEP.

(1) A market participant’s EIC code is issued by the DEP and the EIC code of the metering point is determined by the distribution network operator, the line possessor or the operator of a closed distribution network.

(2) The system operator allocates to the network operator, line possessor or operator of a closed distribution network a code range for assigning EIC codes to metering points.

(3) A market participant’s EIC code is assigned by the system operator. In the case of natural persons, the EIC code is assigned based on their personal identification code, in the case of legal persons, based on their Commercial Registry code, in the case of persons who do not possess a personal identification or Commercial Registry code, based on another unique document number.

(4) The register of EIC codes is located in the DEP.

The technical particulars of the metering point set out the following information

1) the EIC code of the metering point;

2) information concerning whether the metering point is an actual or a virtual one;

3) information concerning the validity of the network contract or, in the case of a line possessor, of the contract for network use, and the party to that contract, and a note concerning whether the consumer is a small consumer;

4) the location address of the metering point the type of the consumer and a note concerning whether that consumer is a protected consumer;

5) whether the metering point is a boundary metering point of the network operator’s service area;

6) information concerning whether the network connection is open or closed;

7) information concerning whether the metering point is connected to the electricity system.

(1) For each metering point at which active energy is measured in both directions, the network operator relays to the DEP bi-directional hourly-basis metering data concerning quantities of active energy. For the rest of the metering points, the network operators relay unidirectional hourly-basis active energy consumption data.

(2) If the metering system does not meter active energy quantities on an hourly basis, the network operator apportions the quantity of active energy to hourly slots based on the standard load schedule approved by the Competition Authority.

(1) The network operator, line possessor or operator of a closed distribution network relays to the DEP, for each of their metering points, the following information

1) the technical particulars of the metering point as listed in § 5;

2) the Commercial Registry code or, in the case of a natural person, the personal identification code, of the market participant who concluded the network contract or, in the case a line possessor or operator of a closed distribution network, the contract for network use;

3) in the case of a first-time submission of data, the EIC code of the open supplier;

4) any modifications to the data previously relayed;

5) bi-directional hourly-basis metering data.

(2) The network operator, line possessor or operator of a closed distribution network creates, in the DEP, a virtual metering point in order to relay hourly-basis data on the quantities of energy lost in the network or line and to calculate network losses.

(3) Once a month, the network operator transmits to the DEP the following data related to the network service provided to the market participant

1) the charges for the distribution and transmission of electrical energy;

2) the charge for use of the network connection and the reactive energy charge;

3) the cost of funding the support for electricity produced from a renewable energy source and for electricity generated in a high-efficiency co-generation mode;

4) the rate of the excise duty on electricity;

5) the reduction of network charges in the case of a breach of the quality requirements;

6) the reduction of network charges, discounts and other rebates or fees applied to the consumer.

(4) The data listed in subsection 3 are only relayed if the network operator has concluded a contract for the payment of network service charges with the open supplier. Calculations related to the cost of the network service, which are set out in the invoice drawn up by the seller of electricity, are relayed to the DEP.

(5) The network operator relays to the DEP information concerning the validity of the contract concluded between that operator and the seller regarding the provision of payment services.

(6) The open supplier relays to the DEP the following information

1) information concerning the validity period of the electricity contract of the market participant to whom they provide the service of open supply;

2) information concerning issues raised by the consumer, if such information needs to be relayed to the network operator;

3) any request for interruption or restoration of the network connection of a point of consumption.

(1) The network operator, line possessor or operator of a closed distribution network has the right to obtain, via the DEP, the following data concerning the metering points linked to them

1) the EIC code of the metering point’s open supplier;

2) information concerning validity of the open supply contract.

(2) The open supplier has the right to obtain, via the DEP, the following data concerning the market participant that has concluded a contract for the sale of electricity with that supplier, or concerning a market participant that has authorized the supplier accordingly via the DEP

1) in respect of the metering point of that market participant, the technical particulars listed in § 5;

2) information concerning the period of validity of the open supply contract related to the metering point of that market participant;

3) the hourly-basis metering data for the last 12 months.

(3) The consumer has the right to obtain the following information via the DEP

1) information concerning the period of validity of the network contract or, in the case of a line possessor, of the contract for network use, which the consumer has concluded and concerning the name of the network operator or the line possessor with whom that contract has been concluded;

2) information concerning the period of validity of any open supply contracts concluded in respect of that consumer’s metering points and the name of the other party to those contracts;

3) information concerning the name of the network operator, or of the seller who holds the relevant authorization and who has been appointed by the network operator, who provides universal service to the consumer;

4) information concerning the quantities of electricity metered at the metering points linked to that consumer;

5) information concerning the open suppliers whom that consumer has authorized to access their consumption data and who have requested that consumer’s data.

(4) The data exchange connected to the changing of the open supplier takes place in accordance with the procedure set out in the technical guidelines for using and joining the DEP (hereinafter, ‘technical guidelines of the DEP’).

(5) Before concluding an open supply contract, the open supplier must verify via the DEP whether the market participant has the right to change the supplier in respect of the particular metering point.

(6) The consumer has the right to obtain from the DEP, free of charge, in a digital form, through the data exchange layer of the state information system and into another information system, data in XML format concerning any metering points linked to them.

(7) The seller has the right to obtain, from the DEP, the information listed in subsection 3 of § 7 if the network operator and the seller have concluded a contract regarding the provision of payment services. In such a case, the seller ensures that information is processed in accordance with the Personal Data Protection Act.

(1) By the fifth day of the calendar month, the network operator, line possessor or operator of a closed distribution network makes available, via the DEP, the metering data for the previous month for locally-read metering points related to the point of consumption.

(2) On each business day, the network operator, line possessor or operator of a closed distribution network uploads, for the previous business day, and on each business day that follows a non-working day, for the previous business day and for the intervening non-working days, to the DEP the initial metered data for metering points at which metering is performed by remote reading.

(3) The DEP makes the metering data accessible without delay.

(1) The balance provider presents to the system operator, concerning its chain of open supplies, the information that is required for balance settlement and for operation of the DEP. When a new balance provider starts their operation, or when a market participant’s balance provider changes, the balance providers notifies this to the system operator.

(2) The balance provider’s balance area is determined by the metering points of the market participants at which that provider is responsible for maintaining the balance.

(1) The balance provider uses means of communication that make it possible for the system operator to contact them at any hour.

(2) The balance provider’s means of communication are

1) the telephone;

2) the mobile telephone;

3) e-mail.

(1) The balance provider relays information to the system operator in accordance with the technical guidelines of the DEP, the balance contract and the directions of the system operator.

(2) If the balance plan of the balance provider is out of equilibrium, they are, when required by the system operator, obligated to show, without delay, how their balance is ensured. When this is required by the system operator, the balance provider must start performing the operations that will bring their balance plan into equilibrium.

(3) The balance provider must not resort to intentional use of balancing electricity.

(1) The balance plan is a body of data concerning the envisaged consumption, production and fixed supply in the balance provider’s balance area.

(2) The balance plan that the balance provider is to submit to the system operator must contain the information stipulated in the balance contract and is to be submitted within the time-limit provided in that contract.

(3) In the case of cross-border fixed supply the total of the quantities supplied must not exceed the free transmission capacity at the border that the system operators concerned have allocated for trading.

(4) The data that are shown concerning supply effected via the power exchange in the balance plan that the balance provider submits to the system operator must correspond to the data transmitted to the system operator by the power exchange operator and the data concerning any fixed supply effected with another balance provider must be agreed with that balance provider.

(5) The system operator disseminates, through their website and in real time, the following information regarding the system

1) total consumption and total generation;

2) generation from wind energy;

3) cross-border transmission capacity;

4) transmission capacity used;

5) interruptions in transmission systems;

6) interruptions in generating modules;

7) information concerning the results of frequency measurement.

(1) Unless agreed otherwise, the transaction period that serves as the basis for payments related to the balance is the calendar month.

(2) The trading period is the full hour.

(3) The purpose of balance settlement is to ascertain the supplies of electricity that pass between market participants. As a result of balance settlement, the extent of the market participant’s open supply for the trading period is ascertained. The balance of all market participants mentioned in the Electricity Market Act is settled for each trading period.

(4) For balance settlement purposes, the balance provider uses measurements from the metering points at which they are responsible for the balance, and the metering data that are relayed to the DEP by the relevant network operator.

(5) For balance settlement purposes, electricity is metered by a remotely read device and fixed supplies are ascertained. Where the size of the current of the main breaker of a connection point operating at low voltage does not exceed 63 A in phase, balance settlement may be conducted by a combined method which is based on metering and the use of the standard load schedule.

(6) Cross-border supply is settled based on the relevant fixed supplies that have been certified by the system operators. Other cross-border electricity is deemed to constitute balancing electricity passing between the system operators concerned.

(1) In order to settle the balance of the system, the amounts of balancing electricity of the balance providers, the quantities of fixed supplies purchased and sold during the trading period and certified by the relevant system operators as well as the balancing electricity of the system are added up. The sum obtained must be zero.

(2) Based on the information relayed by the balance provider and the network operators as well as on the quantities of electricity purchased and sold between the market participants that belong to the chain of open supply of the system operator and that balance provider, the system operator settles the quantity of balancing electricity purchased or sold by the balance provider.

(3) The open supplier settles the balance of the market participants for whom they operate as the open supplier.

(1) In order to settle the balance, the following information is relayed

1) initial information related to balance settlement;

2) specifying information, which is used to verify the initial information.

(2) Initial information means metering-based data concerning open supplies that belong to the balance of the balance provider.

(3) If it turns out that the initial information is incorrect, the system operator together with the balance provider ascertain the correct information to be used to settle the balance.

(1) Initial information required for balance settlement purposes must be accessible for the system operator on the DEP at the latest when six days have elapsed since the end of the trading period.

(2) Information specifying the quantities of open supplies in accordance with clause 2 of subsection 1 of § 16 is to be submitted to the system operator within two months following the end of the trading period.

(3) Information specifying metered supplies in accordance with clause 2 of subsection 1 of § 16 must be at the disposal of the system operator within the time-limit provided in the balance contract.

(1) The system operator presents to the balance provider, by the time-limit provided in the balance contract, the following initial information conforming to clause 1 of subsection 1 of § 16 for the trading period

1) the quantities of electricity supply metered by the balance provider, by each metering point of the balance area;

2) the overall quantities of supply which have been determined by the balance provider and whose data have been relayed to the system operator;

3) transactions conducted between market participants that belong to the open supply chain of the system operator and of the balance provider;

4) the quantity and price of the balance provider’s balancing electricity.

(2) The system operator presents the information specifying that provided under clauses 1–4 of subsection 1 within three months following the end of the transaction period.

(1) The quantity of the network operator’s open supply in their network area is calculated as the difference between the sum of the metering data from the network’s boundary meters and the supplies that have been obtained from that network operator and that have been metered by other market participants in that operator’s service area, from which the quantities of electricity that have been purchased and sold by the operator as a fixed supply are subtracted.

(2) If the inter-network metering point is not located on the boundary of the networks, the metering data may be calculated based on a mutually agreed formula.

(3) The verification accounting of the network operator’s network losses is performed in the DEP.

(4) The metered supply of the balance provider is calculated as the total of the quantities of electricity that have been supplied as reflected by metering data from the metering points of the market participants of the balance area of that balance provider.

(1) The system operator, the balance provider and the market participant’s open supplier receive, from the DEP, the metering data of the metering points required in order to settle the balance.

(2) Information concerning any errors discovered in metered supplies and fixed supplies is relayed to the market participants whose balance has changed due to rectification of those errors.

(3) Where a discrepancy is identified between, on the one hand, data concerning quantities of electricity fed into and taken from the network and, on the other, the actual consumption, or in the case of a fault in the metering system, the network operator, line possessor or operator of the closed distribution network rectifies the metering data that have been submitted and relays the corresponding information via the DEP to the open supplier of the market participant concerned.

(4) Metering data are rectified retrospectively up to 12 months.

(1) In the case of absence of or fault in a remotely read metering system, the network operator calculates the quantity of electricity consumed by the market participant during the previous month for each trading period by means of combined metering and of the standard load schedule.

(2) When calculating the quantities consumed by trading period, the network operator or line possessor proceeds based on metering data submitted concerning the beginning and end of the calendar month.

(3) If the consumer is not required to submit readings or has not submitted those readings by the time determined by the network operator or if the transmission of data from the remotely read metering device is experiencing problems, the network operator estimates the consumption for the relevant calendar month having regard to the type of the point of consumption and hitherto or presumed consumption.

(4) The network operator has the right to rectify a reading if they have ascertained that the reading submitted by the consumer or the reading as estimated by that operator do not correspond to actual consumption, or if there is a fault in the metering system. The network operator makes rectified consumption data accessible to the DEP.

(1) Based on the rectification carried out under § 20 and subsection 3 of § 21, the network operator or the seller appointed by that operator presents a rectification invoice to the consumer for electricity sold under the rules of universal service.

(2) The provider of universal service calculates the cost of the electricity sold under the rules of universal service during the period to be rectified based on the hourly quantities of electricity sold during that period under those rules and on the weighted average value of the hourly prices of electricity published in the Estonian price area of the power exchange. Justified expenses that apply on top of the price of the universal service that was applicable during the rectification period, as well as a reasonable operating margin, are added to the cost calculated in this manner.

(1) The period to be rectified under subsection 4 of § 21 may extend up to 12 months retrospectively. The network operator or, in the presence of the corresponding agreement, the open supplier, presents to the consumer a rectifying invoice for the network service and for the electricity sold by way of universal service. The seller of electricity takes into account the rectified quantities of consumption of electricity and presents to the consumer a rectifying invoice for electricity.

(2) The invoice stating rectified quantities of electricity consumption is presented in accordance with the price applicable under the network contract and electricity contract that applied during the period subject to rectification or according to the price of electricity sold under the rules of universal service.

(1) If the quantity of electricity consumption fixed in accordance with the rules provided in subsection 3 of § 21 exceeds the quantity actually consumed, the network operator pays the seller for the difference. If the quantity of electricity consumption fixed in accordance with the rules provided in subsection 3 of § 21 falls below the quantity actually consumed, the seller pays the network operator for the difference.

(2) The rules provided in subsection 1 are applied when the balance for the period to be rectified has been settled but the seller has made a set-off with the market participant. If the balance has not been settled, the rectified quantities of electricity consumption are taken into account in the balance to be settled.

(3) If the quantities of electricity consumption have to be rectified after settling the balance, the network operator and the seller are to set off any rectified quantities whose cost is calculated based on the price, for the rectification period, in Estonia’s price area of the power exchange.

(1) To settle the balance, within 15 days from the end of the transaction period, the system operator presents to the balance provider a balance report drawn up based on the initial data that have been submitted to the system operator. The report sets out hourly information concerning the quantities of balancing electricity sold to and purchased from balance providers and the calculated price of balancing electricity.

(2) Together with the balance report, the system operator presents to the balance provider an invoice which which states the amount payable, by the due date shown on the invoice, for balancing electricity traded during the previous transaction period. The payable amount is expressed as the difference between the amounts payable for balancing electricity purchased from one another by the balance provider and the system operator.

(3) If, in the course of conclusive settlement of the balance, it turns out that the quantities of balancing electricity differ from the quantities of such electricity as initially settled, which leads to alteration of the quantities, or price, of that electricty determined in the balance report, the system operator, within seven days from receiving the notice concerning a change in the data, presents to the balance provider a supplementary invoice, or the corresponding amount is set off in the next invoice presented by the system operator.

The amount of the balance provider’s fixed guarantee to be provided concerning fulfilment of the obligations assumed under the balance contract is 31,955 euro, which must remain valid through the period of validity of the balance contract and at least for four months following the end of that contract.

The system operator publishes in its website the list of open suppliers, which contains the following particulars

1) the name of the open supplier;

2) their location address;

3) the numbers of their means of communication;

4) their Commercial Registry code;

5) the open supplier’s EIC code.

(1) At any given metering point, open supply may be provided by a single open supplier, who is the market participant’s open supplier for the purposes of subsection 1 of § 44 of the Electricity Market Act. Fixed supplies may be purchased from several suppliers at the same time.

(2) The market participant may change the open supplier in accordance with the network contract concluded with respect to the metering point of their point of consumption starting from 00:00 hours at the change of the calendar month.

(3) Where the open supplier cancels an open supply contract or otherwise terminates it, that supplier gives at least seven days’ notice of this to the other party to the contract and to the DEP.

(4) When a new open supply contract is concluded, the open supplier transmits, through the DEP, at least seven days before the start of the calendar month

1) information concerning the period of validity of the contract that has been concluded;

2) the EIC codes of the metering points with respect to which the contract was concluded.

(1) The changing of the open supplier without an interruption in the supply contract takes place such that the new open supply contract becomes effective when the previous one ends.

(2) When changing the open supplier without an interruption in the supply contract the consumer or, if they have been accordingly authorized by the consumer, the open supplier who concluded the new open supply contract, presents to the hitherto open supplier, within three business days following the conclusion of the new open supply contract, a declaration, at least in a format that allows reproduction in writing, which cancels that consumer’s valid open supply contract and which sets out the particulars of the consumer.

(3) When they receive the cancellation declaration referred to in subsection 2, the hitherto open supplier terminates the valid open supply contract and records the corresponding change in the DEP at least 14 days before the date on which the hitherto contract was to expire.

(4) If the hitherto open supplier does not effect the change mentioned in subsection 3 in the DEP within due time, the change is made in the DEP by the system operator within one business day following reception of the corresponding request from the new open supplier.

(5) If the consumer withdraws, under the rules provided in the Law of Obligations Act, from the new open supply contract mentioned in subsection 2, the new open supplier notifies this, at least in a format that allows reproduction in writing, to the hitherto open supplier within three business days following the filing of the corresponding declaration.

(6) If electricity is metered by means of a remotely read metering system, the network operator or line possessor records the reading of the metering system at the moment when change of the open supplier takes place

(1) To effect a change of the consumer, the new consumer concludes, with respect to the metering point of the point of consumption, the network contract and the open supply contract. A single network contract or, in the case of the line possessor or operator of a closed distribution network, a single contract for network use, and a single open supply contract may be concluded with respect to any given metering point.

(2) In the case of termination of the network contract, the open supply contract ends at 24:00 on the day the network contract was terminated.

(1) The open supplier may change the balance provider at the progression to the next calendar month.

(2) The open supplier gives at least seven days’ notice of a change of their balance provider to the DEP.

(1) Where, as a result of modifications to the network operator’s service area, the location of a market participant’s connection point is transferred to the service area of another network operator, the network operator who provides the network service gives at least 30 calendar days’ notice of this

1) to the open supplier who provides the service of open supply at the connection point in respect of which the network operator changes;

2) to the market participant whose network operator changes;

3) to the seller appointed by the network operator.

(2) Starting with the modification of the service area, the market participant is subject to the new network operator’s standard terms of provision of the network service and network charges.

(3) As a result of the change of the network operator’s service area, the EIC codes of all of the metering points transferred to the new service area are replaced. Information concerning the link between the old and the new EIC codes is retained in the DEP for at least five years.

(1) The network operator or the seller appointed by the network operator disseminates, through their website, the standard terms that apply in the case of interruptions of the open supply contract.

(2) If the market participant’s open supply contract is interrupted and the network operator or a seller appointed by the network operator provides to them the service of open supply under subsection 41 of § 44 of the Electricity Market Act, the network operator notifies this to that market participant without delay but at the latest within two business days following interruption of the open supply contract.

(3) The service of open supply under subsection 41 of § 44 of the Electricity Market Act commences at 00:00 hours on the day the contract is interrupted.

(4) If a new open supply contract is concluded after the interruption of the open supply contract, the change of the open supplier takes place at 00:00 hours on the day following the day on which the new contract was concluded.

(1) This Regulation enters into force on 27 April 2019.

(2) Subsection 1 of § 9, subsections 3 and 4 of § 28, subsections 1–5 of § 29 and subsection 2 of § 31 enter into force on 27 July 2019.