Balance Of The Agreement

The standard conditions of the balance sheet agreement are clearly defined: if the balance sheet provider is not in balance, it must immediately indicate, at the initial request of the TSO, how to restore balance. At the request of the TSO, the balance provider must take immediate steps to rebalance. The balance provider must use communication systems that allow the TSO to contact him at any time of the day or night. The balance sheet provider is responsible for balancing operators in its open supply chain. It is the responsibility of the balance sheet provider to ensure that problems of electricity purchased or injected into the grid by market participants in its balance sheet area and the quantities of electricity sold or removed from the grid during the same trading period are compensated. By signing a balance sheet agreement, the TSO undertakes to sell to the balance sheet supplier all quantities of electricity missing in its balance sheet territory during a trading period and to purchase surplus electricity from the balance sheet supplier. A number of factors can influence the current balance sheet of contracts. For example, if a customer delays making payments for previous shipments, the seller can postpone an imminent shipment until the account is no longer in default. In the case of a volume sales contract (VPA), the customer cannot acquire the minimum number of units to meet the conditions related to the reduced prices.

If this is the case, the customer can evaluate the balance of the contract, which results in a fee that compensates for the difference between the contractual obligation and the remaining units to be purchased to comply with these conditions. A contract balance is a term that is sometimes used to identify the amount of goods and services that still need to be delivered to a customer under the terms of a contract that currently exists between the customer and the supplier. Companies of many different types use this term when they refer to the supplier`s remaining obligations to the customer at a certain stage of the contract term. The term is more often used in dealer contracts, although the concept fits well with a multitude of customer/supplier relationships that are regulated by the establishment of a contract. A balance sheet provider may be any entity that has signed a balance sheet agreement with Elering to ensure its own balance in accordance with the Electricity Market Act and related legislation. The general terms and conditions of the balance sheet agreement approved by the Autorité de la concurrence are attached to the balance sheet agreement. The control of the contractual balance sheet is very important for both suppliers and customers. For suppliers, the goal is to use this information to ensure that there are enough units available on the expected shipping date to fulfill the customer`s order. At the same time, customers should monitor the balance of the contract to ensure that they purchase enough units to maintain the extended discounted prices under the terms of the contractual agreement, thus effectively avoiding any form of penalty or additional charges when that contract reaches its expiry date. . . .

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