Definition
The balance settlement is the financial mechanism that ensures all deviations from notified production and consumption profiles in the electricity market are priced and settled. StatnettNorway's system operator for the transmission grid - owns and operates the high-voltage network and operates Elhub. carries out the balance settlement for the Norwegian market daily, based on measured hourly data from ElhubNational hub for metering data and market processes in the Norwegian electricity market. and prices from the regulating power market (RP prices). If a BRPBalance Responsible Party - actor responsible for balancing production and consumption in its portfolio against the system operator. (balance responsible party) has produced or consumed more than notified, it purchases this volume at the RP price. If it has produced or consumed less, the difference is sold at the RP price. The RP price is typically higher than the spot priceHourly electricity price set in the Nordic power market the day before delivery - basis for variable electricity prices to end users. (upward) and lower (downward), creating a financial incentive for BRPs to notify accurately. The balance settlement is one of the most important interfaces between the physical power system and the financial markets, and requires precise, timely metering dataData from electricity meters - the foundation for billing, balance settlement and market processes in the power market. as its basis.