Imbalance Settlement Harmonisation Methodology (ISHM) Assessment

Overview

In accordance with Commission Regulation (EU) 2017/2195 of 23 November 2017 establishing a guideline on electricity balancing (EB Regulation), the Imbalance Settlement Harmonisation Methodology (ISHM) pursuant to Article 52(2) aims to further specify and harmonise the rules for imbalance settlement. Pursuant to the EB Regulation, all TSOs were required to implement this Methodology by January 2022. This consultation concerns the assessment of the need for further harmonisation of imbalance settlement in accordance with Article 52(2) of the EB Regulation and Article 12(3) of the ISHM.

Why your views matter

Pursuant to Article 12(3) of the ISHM, two years after the implementation deadlines of the European platforms for the exchange of balancing energy pursuant to Articles 20(6) and 21(6) of the EB Regulation, all TSOs are required to assess the need for further harmonisation of imbalance settlement, in line with the objectives set out in Article 3 of the EB Regulation. According to ACER Opinion No 03/2025 of 16 April 2025 on the first amendment of the ENTSO-E Monitoring Plan, adopted in accordance with Article 63(2) of EB Regulation, the assessment of the need for further harmonisation of the imbalance settlement shall include an initial report to be submitted to ACER and the NRAs by July 2026 and a final report to be submitted by July 2027.

The assessment is based on the evaluation of the consequences and possible distortions resulting from non-harmonisation, pursuant to Article 59(3)(i) of the EB Regulation. The TSOs shall publish this assessment and invite stakeholders to submit comments. One year after the publication of the European report, all TSOs shall submit their final assessment, together with the comments received from stakeholders, to all regulatory authorities and ACER, which is expected in July 2027.

This assessment for stakeholder consultation has been prepared by all TSOs with the support of an external consultant.