If the balance provider is not in balance, it must immediately show the TSO`s first request how to restore balance. At the request of the EST, the balance sheet provider must take immediate action to restore balance. The scale supplier must use communication systems that allow the TSO to contact them at any time of the day and night. A balance provider may be any entity that has signed a balance agreement with Elering in order to ensure its own balance in accordance with the Electricity Markets Act and the legislation associated with it. The terms and conditions of the Elering residual agreement, approved by the competition authority, are attached to the balance sheet agreement. The balance sheet supplier is responsible for balancing market players in its open supply chain. It is the responsibility of the balancing provider to ensure that the quantities of electricity purchased or networked by operators in its balance sheet sector and the quantities of electricity stored or removed from the grid during the same trading period are balanced. There are a number of factors that can affect the current balance of the contract. If a client. B makes late payments for previous deliveries, the customer may delay an imminent delivery until the account is no longer late. In the case of a volume purchase contract (VPA), the customer cannot purchase the minimum number of units to meet the reduced price requirements.
In this case, the client can assess the balance of the contract, resulting in a charge that can compensate for the difference between the contractual obligation and the remaining units that must be acquired to meet these conditions. Tracking the balance of contracts is very important for both suppliers and customers. For suppliers, the goal is to use this information to ensure that by the scheduled shipping date, there are enough units available to respond to the customer`s order. At the same time, customers will want to monitor the balance of the contract to ensure that they are buying enough units to maintain the discounted prices renewed under the contractual agreement, effectively avoiding any form of penalty or additional fees when the contract reaches its expiry date. One of the simplest ways to understand how a contractual balance is created is to consider an agreement between a customer and a seller to provide 1,000 units of a given asset over the life of a one-year contract. In some cases, the contract will provide certain data during the product delivery lifecycle, in which a minimum number of units must be delivered to the customer. The total number of units in the contract for future delivery is considered a contractual balance, which means that neither party can consider the contract completed until the 1,000 units of the goods have been delivered to the customer. A contractual balance is a clause 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.