Rules & regulations

Balance group model

The balance group model forms the basis of the liberalised Austrian energy market.

The introduction of the balance group model and the separation of trading and distribution on the one hand and grid operation on the other were among the fundamental changes in the structure of the Austrian energy industry. In Austria, framework conditions were created that were based on the Scandinavian balance group model.

This model has to fulfil the following basic requirements:

Ensuring that actual deliveries to and withdrawals from the grid are balanced
Providing imbalance energy to cover the difference between forecast and actual electricity withdrawals or deliveries to the grid
Establishing a system for the settlement of imbalance energy and similar services

In order for such a system to be implemented, in addition to the aforementioned measures for unbundling generation and electricity trading as well as distribution and transmission, consumer groups and producer groups must be combined into balance groups.

Market players

The liberalised electricity market is characterised by the appearance of new market players with different tasks and responsibilities who ensure the operation of the electricity market:

Grid operators – this term refers to the operators of transmission and distribution grids. The distribution grid transports medium or low-voltage electricity to supply customers with power. The transmission grid is a high-voltage interconnected grid that is used for supraregional electricity transmission.
Control area manager – responsible for power frequency control in a control area, although this function can also be performed by a third party. In Austria, APG - Austrian Power Grid AG acts as the control area manager.
Balance group – this refers to the grouping of suppliers and customers into a virtual group within which electricity supply and demand are balanced. The balance group representative is the person responsible for the balance group in relation to other market participants.
Imbalance settlement responsible - for transactions and pricing of imbalance energy: The imbalance settlement responsible is an institution that uses the data provided by grid operators and market participants to calculate the imbalance energy, determine the price for the imbalance energy and manage the balance groups in terms of organisation and settlement. In Austria, an imbalance settlement responsible has been set up for the APG, Tyrol and Vorarlberg control areas. The operator of an imbalance settlement responsible is the balance group coordinator.