BmFRR Auctions

The Operation Regulation of the Electricity Sector Networks (ROR), approved by the Energy Services Regulatory Authority (ERSE) through Regulation no. 816/2023, of July 27, incorporated the European design of electricity system balancing markets. It specifies that the Global System Manager (GGS) must adopt the standard balancing products, namely the Manual Frequency Restoration Reserve (“mFRR”) and the Automatic Frequency Restoration Reserve (“aFRR”), by joining the respective European platforms: MARI and PICASSO, respectively.

The details of system services, including balancing services, are defined in the Manual of Procedures for the Global System Management of the electricity sector (MPGGS), approved by ERSE through Directive no. 23/2022, of December 13, and amended by Directive no. 12/2023, of July 21, under the ROR and the Commercial Relations Regulation of the Electricity and Gas Sectors, approved by ERSE through Regulation no. 827/2023, of July 28.

Within the framework of Commission Regulation (EU) 2017/2195, of November 23, 2017, which establishes guidelines for electricity balancing (EB Regulation), Article 26(1) provides the possibility of applying a specific product in the system services market. The national regulatory authority is responsible, in accordance with Article 5(4)(d) of the EB Regulation, for approving the terms and conditions or methodologies developed by transmission system operators for such specific products.

Following the improvement proposal, the GGS submitted to ERSE a proposal for the Terms and Conditions Applicable to the mFRR Band, which materialized in the proposal to create a BmFRR market. ERSE framed it within the necessary changes to the MPGGS, and it was subject to public consultation.

More information is available on the ERSE website.