Rules and Regulations

The balance group model is the basis on which the liberalized Austrian energy market operates.

The introduction of the balance group model, the separation of trading and distribution, on the one side, and the operation of the grid, on the other, were the fundamental changes implemented to the structure of the Austrian energy sector. In Austria, a framework has been established modeled after the Scandinavian balance group model.

The model must fulfill the following tasks:

•  Secure the balancing of the actual inflows into the grid as well the outflows from the grid.

• Make balancing energy available to cover the differences between the actual and estimated outflows and inflows of electricity into the grid

• Establish a system for financial settlement of balancing energy and provide similar services
  

Market Actors

The deregulated electricity market is characterized by the emergence of new market actors with different tasks and areas of responsibility that guarantee the functioning of the electricity market:

• Grid operators – These include operators of transmission and distribution grids. The distribution grid transports electricity of medium and low voltage to supply customers. The transmission grid is a high voltage power transmission system that enables the supra-regional supply of electricity.

• System operator – The system operator is responsible for power frequency control in a specific balance area, although this function may also be exercised by a third party. In Austria, three companies act as system operators: APG, TIWAG-Netz AG, VKW-Netz AG.

• Balance group – This means the grouping of suppliers and customers into a virtual group within which the balancing of electricity supply and demand takes place. The representative of the balance group vis-à-vis the other market participants is the balance responsible party.

• Imbalance Settlement Responsible Party for transactions and price formation for balancing energy: The imbalance settlement responsible party is an organization that calculates the balancing energy and its price based on the data supplied by the grid operators and market participants, and also administrates the registration and the settlement for balance groups. In Austria, there are imbalance settlement responsible parties for the balance area Verbund-APG and for the balance areas Tyrol and Vorarlberg. The imbalance settlement  responsible party in Austria is also called balance group coordinator.

 

The General Terms and Conditions of Business and the Annexes in their  current versions as well as the former versions are available here.