ACER publishes the 2012 Report on regional initiatives for completing the EU gas and electricity market

18/02/2013

Among the main achievements highlighted in the ACER Regional Initiatives Status Review Report 2012 ,  the development of the Roadmap for the early implementation of the Network Code on Capacity Allocation Mechanisms (CAM NC) represents a step forward for the Gas Regional Initiative, as it adopts with it a more project-oriented and cross-regional approach. With regard to the Electricity Regional Initiative (ERI) where four of such Roadmaps have been in place since the end of 2011, most foreseen key milestones towards the creation of the Internal Electricity Market have been reached although some delay has been experienced.

Progress and challenges in the electricity field

  • The European Price Coupling project has experienced delay but the 2014 deadline is still reachable: in spite of the obstacles, the launch of the North-West Europe/Price Coupling of Regions project in November 2013 and its fast extension to neighboring regions are the main elements to turn this challenge into a success.
  • The Intraday project acknowledged a major delay, but a pilot solution is to be delivered in 2013: although a major Power Exchanges (PXs)’ disagreement severely delayed the project, the situation has been settled with the development of a call for tender. Once the outcome is known, Transmission System Operators (TSOs) and PXs will go ahead with the implementation with the market participants’ involvement.
  • Harmonised allocation rules for long-term rights are on track: following the work on the “wish-list”, its finalisation and implementation are the first challenge. In parallel to the ongoing extension of CASC.EU, a regional platform dedicated to the allocation of transmission rights, integration of the current bilaterally managed borders to existing platforms is another key target. Finally, the impact of the review of the Markets in Financial Instruments Directive (MiFID II) and of the existence of different forward market organisations in Europe will also be carefully addressed.
  • The implementation of the flow-based method has been postponed due to operational difficulties and the loop-flow issue: following difficult discussions on technical parameters or the loop-flow issue, both the Central-West Europe and the Central-East Europe regions should progress thanks to the very last developments.
Progress and challenges in the gas field
  • Early implementation of Capacity Allocation Mechanisms (CAM) and CAM pilot projects: the elaboration of the CAM Roadmap represents a step forward for the Gas Regional Initiative, which adopts with it a more project-oriented and cross-regional approach. The CAM Roadmap is composed of several pilot projects and platforms aiming at the early implementation of coordinated, market-based allocation of bundled cross-border capacity products in line with the CAM Network Code (NC) provisions. The CAM Roadmap has been endorsed by ACER’s Board of Regulators and ENTSOG’s Board in January 2013 and now enters its implementation stage. The experience gained from the CAM Roadmap may lead to the development of similar Roadmaps for the early implementation of NCs in other areas such as Gas Balancing and Interoperability.
  • Other contributions of the GRI projects to the European single market: in addition to the work on the CAM Roadmap and pilot projects on CAM, the three gas regions (North-West, South and South South-East) have been working extensively during 2012 on a number of regional projects in different areas, in conformity with their respective Work Plans 2011-2014. The Status Review Report summarises the main achievements of these projects in 2012. The main challenge for the GRI in 2013 is to remain a forum achieving tangible results in specific projects on different areas, in line with the Work Plans 2011-2014. Next to that, the GRI should continue to be used for the exchange of information, sharing of good practices among regulators and operators, and learning from the experience in regional projects.