Frequency regulation: frequency keeping constrained on/off

We have decided to amend the Electricity Industry Participation Code 2010 (Code) to prevent the system operator from paying a frequency keeping ancillary service agent for either in-band constrained on compensation or in-band constrained off compensation, while providing frequency keeping. The Code amendment promotes the efficiency limb of our statutory objective by increasing the probability that the most efficient providers of frequency keeping are selected in each trading period. The Code amendment comes into force on 1 May 2016. We have set the commencement date to fit with the clearing manager’s programme of work to implement the change.

We made our decision after considering submissions on the removal of the in-band frequency keeping constrained on and off compensation consultation paper.