Settlement center BEM

The Balancing Electricity Market is an integral part of the Unified Power System of the Republic of Kazakhstan and ensures the physical and financial settlement of imbalances between the actual and scheduled volumes of electricity generation and consumption. Its operation is aimed at increasing market participants' responsibility for compliance with scheduled generation and consumption plans, encouraging them to minimize deviations, and ensuring the fair and targeted allocation of the costs associated with resulting imbalances.

The operation of the Balancing Electricity Market is governed by the Law of the Republic of Kazakhstan "On Electric Power Industry" and the Rules for the Operation of the Balancing Electricity Market approved by Order No. 112 of the Minister of Energy of the Republic of Kazakhstan dated 20 February 2015.

Pursuant to Order No. 211 of the Minister of Energy of the Republic of Kazakhstan dated 6 June 2023, Kazakhstan Electricity and Power Market Operator Joint Stock Company (KOREM JSC) has been designated as the Settlement Center of the Balancing Electricity Market, responsible for the centralized purchase and sale of balancing electricity and negative imbalances in accordance with the Law of the Republic of Kazakhstan "On Electric Power Industry."

The participants of the Balancing Electricity Market include balancing market entities, the Settlement Center of the Balancing Electricity Market, and the System Operator. To participate in the balancing market, market entities conclude with the Settlement Center an agreement for the purchase and sale of balancing electricity and negative imbalances, as well as an accession agreement with all balancing market participants defining the procedure for financial settlements. Market entities may also transfer responsibility for participation in the balancing market to a Balance Provider within the relevant balancing zone in accordance with the legislation of the Republic of Kazakhstan.

The Settlement Center of the Balancing Electricity Market calculates hourly volumes of balancing electricity and imbalances and performs netting procedures for the financial settlement of participants' obligations.

The activities of the Settlement Center are aimed at ensuring transparency and objectivity of settlements, maintaining the financial sustainability of the balancing market, ensuring uniform rules of interaction among market participants, and enhancing the reliability of the Unified Power System of the Republic of Kazakhstan.