Scope of monitoring
Regulation (EU) 2019/942 and FCA Regulation task ACER and ENTSO-E to monitor the implementation of FCA Regulation.
The purpose of these tasks is generally twofold. First, the Agency and ENTSO-E should monitor the effectiveness in the implementation of FCA Regulation in terms of implementation of the requirements and provisions by TSOs. Second, once the specific requirements of FCA Regulation have been implemented, ENTSO-E and the Agency should monitor the effect of the FCA Regulation on the efficiency of forward capacity allocation and the functioning of electricity market in general.
Both aspects are addressed in different monitoring reports issued by the Agency and ENTSO-E.
Article 63 of the FCA Regulation and Article 5(1)(e) of the Regulation (EU) 2019/942 and 32 of the Regulation (EU) 2019/943 set out the monitoring tasks of the implementation of forward capacity allocation for ENTSO-E and the Agency.
ACER needs to monitor the implementation by ENTSO-E of network codes and guidelines, the implementation of the network codes and the guidelines and their effect on the harmonisation of applicable rules aimed at facilitating market integration as well as non-discrimination, effective competition and the efficient functioning of the market, and report to the Commission.
Report on the implementation of the FCA Regulation
The Agency plans to issue annually the reports on the implementation of FCA Regulation. As the implementation of the FCA Regulation is still in a stage of development and no effective implementation has taken place yet, the Agency did not issue any monitoring reports with this respect. This first general monitoring report on the implementation of FCA Regulation was issued in 2019.
Report on the effects of the FCA Regulation
The Agency's task to monitor the effects of the FCA Regulation on the harmonisation of applicable rules aimed at facilitating market integration as well as on non-discrimination, effective competition and the efficient functioning of the market is performed in the framework of the Agency's monitoring of the internal market in electricity in accordance with Article 15 of the Regulation (EU) 2019/942.
Although the main provisions of the FCA Regulation have not been implemented yet and therefore the direct effects cannot be observed yet, the annual Market Monitoring Report of the Agency analyses the effects of the early implementation activities of electricity market integration such as the existence and quality of hedging opportunities at different bidding zone borders in Europe. You can find more about the Agency's monitoring of internal market in electricity here.
Report on long-term capacity calculation and allocation
Pursuant to Article 26 of the FCA Regulation, ENTSO-E needs to draft a report on long-term capacity calculation and allocation and submit it to the Agency no later than 2 years after entry into force of the FCA Regulation. The subsequent issues of this report are to be delivered to the Agency every two years if requested so from the Agency.
In August 2019, ENTSO-E submitted to the Agency a report on capacity calculation and allocation 2019, accessible here.