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Decision to grant the ESO a derogation under Article 6(14) from the requirements of Article 6(2) of the Regulation (EU) 2019/943 for Dynamic Moderation

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On the 30 November 2021, we received a request from the Electricity System Operator (ESO) for a derogation under Article 6(14) from the requirements of Article 6(2) of Regulation (EU) 2019/943 (Electricity Regulation) for the new specific Frequency Containment Reserve (FCR) product Dynamic Moderation (DM).

The ESO have requested the derogation from the requirements of Article 6(2) to allow DM to be launched with the price of balancing energy pre-determined in the balancing capacity contract.

This letter sets out our decision to approve the derogation requests in accordance with Article 6(14) of the Electricity Regulation and also outlines the necessary next steps that must be taken.

Main document

[Decision on Article 6(2) Derogation for Dynamic Moderation [PDF, 132.14KB]

](https://www.ofgem.gov.uk/sites/default/files/2022-01/DM%20Art6%282%29%20Derogation%20Decision%20Letter.pdf)

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