Since electrical energy cannot be stored, each kWh consumed must be produced at the precise moment it is consumed. What's more, every kWh produced must reach the end customer for consumption without interruption. Any deviation will have an influence on the voltage and frequency stability.

Creos Luxembourg S.A. ensures that its network compensates in real time for any discrepancies that may arise between the totality of suppliers' nominations and the totality of their customers' actual consumption by adjusting the balancing power (standby power used to compensate for discrepancies in real time). The transmission system operator therefore needs exact consumption forecasts for customers connected to its networks.

The remuneration for this provision is included in the tariffs for the use of the networks managed by Creos Luxembourg S.A. The integral ¼-period of the total balancing power is equal to the total balancing energy of the zone managed by Creos Luxembourg S.A. The balancing energy is invoiced to the Balance Responsible Entity (Bilanzkreisverantwortlicher) according to the methods described below.

Balancing energy is bought and sold on the competitive market. The ¼-hourly imbalances are invoiced according to the RTP (Real Time Pricing) method, respecting the real supply costs to cover Creos Luxembourg S.A.'s overall imbalances.

However, a distinction must be made between a price for the supply of positive balancing energy and a price for negative balancing energy, depending on the balance of the transmission system operator's balance zone.

The supplier, who is "balance responsible", can group together all his customers located in the control zone managed by Creos Luxembourg S.A. and benefit from the simultaneity of all his customers. This creates a virtual balance perimeter. The supplier is responsible for the permanent coverage of power withdrawals and injections in the control area managed by Creos Luxembourg S.A.

The daily forecast programme for the balance perimeter must be sent by the supplier to the transmission system operator by 2.30 p.m. at the latest, at least 1 working day before the day to which the programme relates. The Transmission System Operator manages the daily load schedules for a balance perimeter and defines the deviations and balancing energies it has provided to compensate for these deviations.

For a given ¼-d'hour, the price per kWh of balancing energy is equal to the average of the bids used to cover imbalances in real time. As soon as they have been determined, the prices applicable per ¼-hour band will be published on the Internet in the form of a table showing the billing period that has elapsed.

The price charged for balancing energy is symmetrical. We will distinguish between the REP+ price for the supply of positive balancing energy and the REP- price for the supply of negative balancing energy. The application of REP+ or REP- prices when billing balancing energy to suppliers depends on the sign of the ¼-hourly balance of the control area.

In the context of Regulation (EC) No 1228/2003 of the European Parliament and of the Council of 26 June 2003 on conditions for access to the network for cross-border exchanges in electricity, Creos Luxembourg S.A. hereby publishes the relevant regulations:

Network structur

The transmission network managed by Creos Luxembourg S.A. is integrated into the European interconnected networks of ENTSO-E via two 220kV double lines from Amprion GmbH [D], formerly RWE Transportnetz Strom GmbH. There is no permanent interconnection with the other neighbouring networks, which are those of Elia [B] and RTE [F]. Transit energy flows can therefore only be established on the interconnection lines with the German network.

The transmission network managed by Creos Luxembourg S.A. complies with the rules imposed by national legislation and with the valid operating, planning and safety standards established jointly by the European transmission system operators associated in ENTSO-E and published on the ENTSO-E website.

Interconnection capacity

The contractual interconnection capacity in normal situation is 1700 MW.

The contractual interconnection capacity in degraded situation n-1 for the lines coming from Germany currently amounts to 980 MW. This capacity is sufficient to cover the needs of the Luxembourg public network, which has a foreseeable peak load of 770 MW.

Because there is currently no congestion on the interconnection lines with Germany, there is currently no explicit allocation mechanism for this transmission capacity. In the event of a change in circumstances leading to specific measures for the management of interconnection capacity, the arrangements adopted will be published in advance.

Interconnection capacity and safety margins are calculated according to the rules established jointly by the European Transmission System Operators associated with ENTSO-E and published on the ENTSO-E website.

Energy is exchanged between market players within the Luxembourg control area (Creos Luxembourg S.A.) via balance perimeters. Any exchange of electrical energy between two balance perimeters and any exchange of electrical energy between control areas must be the subject of nominations sent to the balance coordinator by the balance responsible parties concerned.

A nomination is a provisional daily programme listing by ¼-hour period all the energy transactions of a balance perimeter with other balance perimeters. ENTSO-E (European Network System Operators for Electricity) has established a standardised nomination system for this type of data exchange (Electronic Data Interchange). This ESS (Electronic Scheduling System) defines the rules and formats to be applied in all ENTSO-E transmission networks and can be downloaded from the ENTSO-E website under the EDI Library link.

The following balance responsible parties have a balancing agreement in force in the Creos Luxembourg S.A. scheduling area. A supplier may also assume the role of balance responsible party. If the balance responsible party is a natural or legal person other than the supplier, a joint declaration in accordance with annex 3 of the balancing agreement must be signed by all parties. The balance coordinator only publishes the balance responsible party on its website.

All Balance Responsible Entities must have a unique EIC code for the balance perimeter for which they are responsible. In accordance with the ENTSO-E reference manual, an EIC code is allocated via the Local Issuing Office either in the country where the Balance Responsible Entity has its registered office or in the country where it wishes to operate. Creos Luxembourg S.A. acts as the Local Issuing Office within the Luxembourg control area.

To obtain an EIC code, please fill in the application form. The EIC code is definitively allocated when it appears on the list of allocated codes.

Important

Signing the form enables the allocation office to forward the request to ENTSO-E and entitles the data to be published on its website. If a company's name or role changes, the EIC code will remain unchanged. ENTSO-E therefore strongly recommends the use of insignificant codes to ensure the anonymity of each company.

A national EIC code, assigned by Creos Luxembourg S.A., can only be used in the Luxembourg control area.

An international EIC code, requested from the local allocation office, can be used in all ENTSO-E transport networks. It is hoped that each applicant will request only one EIC code.

Article 7 paragraph 3 last subparagraph of the Grand Ducal Regulation of 26 December 2012 states that:

"The remuneration of the power is a function of the participation of the power plant in covering the tariff peaks charged to the national grid. This participation is calculated as the average of the power plant's contributions at the time of the three maximum weekly values identified, reported and recorded during the financial year (half-hourly power) of the system operator holding a concession for the management of a transmission system on 1 January 2012."

The following Balance Responsible Parties have a Balancing Agreement in force in the Creos Luxembourg S.A. scheduling area. A supplier may also assume the role of Balance Responsible Party. If the Balance Responsible Party is a natural or legal person other than the supplier, a joint declaration in accordance with annex 3 of the Balancing Agreement must be signed by all parties. The Balance Coordinator only publishes the Balance Responsible Party on its website.