Why is it important for Balancing Authorities to modify their Frequency Bias Settings during Overlap Regulation Service?

The importance of modifying Frequency Bias Settings during Overlap Regulation Service primarily lies in the need to accurately reflect the combined frequency response of both Balancing Areas. This is crucial because as two or more Balancing Authorities operate in close proximity and agree to share balancing resources, their actions and responses to frequency changes can significantly impact each other.

Having a correct Frequency Bias Setting allows a Balancing Authority to adjust its control actions to account for the simultaneous contributions to frequency from interconnected networks. This collaboration helps in managing the frequency more effectively, ensuring that the system remains within the required reliability standards. By accurately reflecting the aggregate response of both Balancing Authorities, the stability and reliability of the grid are enhanced.

While operational efficiency and compliance with regulations are also important, the primary goal in the specific context of Overlap Regulation Service is to achieve the most accurate and coordinated response to frequency changes in interconnected systems. Accurate energy billing can be influenced by frequency bias adjustments, but it is not the primary reason for modifications in this scenario.