Definition
Balance settlementFinancial settlement between BRPs and the system operator for energy imbalances in a given period. is the financial process by which StatnettNorway's system operator for the transmission grid - owns and operates the high-voltage network and operates Elhub. settles imbalances between BRPs' planned and actual energy delivery in the real-time market. The basis is validated, VEEValidation, Estimation, Editing - systematic process to ensure quality of raw metering data from electricity meters.-approved metering dataData from electricity meters - the foundation for billing, balance settlement and market processes in the power market. from ElhubNational hub for metering data and market processes in the Norwegian electricity market. - data that has not been reviewed cannot be used as a settlementTurning metering data into money. Consumption and production per metering point become what each party owes or is owed. basis. Settlement normally takes place daily and uses the system price and balance price set by Statnett as reference. Large imbalances can result in significant financial costs for the BRPBalance Responsible Party - actor responsible for balancing production and consumption in its portfolio against the system operator.: an electricity supplierCompany that sells electricity to end users - purchases power in the wholesale market and sells it to consumers. that consistently underestimates its portfolio's consumption pays heavy balance settlements. Conversely, overestimation can generate sales revenue but weakens system balance. For IT systems, this means MDMMeter Data Management - system for collection, storage, quality assurance and distribution of metering data from the electricity grid. systems must deliver complete and timely metering data - missing values or errors in metering data propagate directly into incorrect settlement. Precise integration between AMSAdvanced Metering and Control System - the digital electricity meter Norwegian households received from 2019, reporting consumption hourly to Elhub. meters, AMIAdvanced Metering Infrastructure - comprehensive system for two-way communication between smart meters and power suppliers' systems. infrastructure, MDM, and Elhub is a prerequisite for correct balance settlement.