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In the ongoing trend of restructuring the electricity market worldwide, ancillary services are introduced for operating entities to realise the market functions and maintain system security. Generation providers willing to join the inner- or interarea regulation markets are interested in how the direct regulation service between supplier and customer can be achieved effectively at lower costs, while operating quality can be maintained. The paper evaluates a customer-based regulation-control error that is used for operating entities to provide inner- or interarea regulation service. Test results show that the proposed method performed as desired in simulated condition. Issues related to the advantages of adjusting customer's frequency-bias setting in dynamic regulation control are also explored.