12.7.2021

ACER to decide on the congestion income distribution methodology for European electricity markets

TwitterTwitterTwitter
Image
City Electricity

ACER to decide on the congestion income distribution methodology for European electricity markets

What is it about?

The EU Agency for the Cooperation of Energy Regulators (ACER) has received on 9th July 2021 all transmission system operators (TSOs)’ proposal establishing the congestion income distribution methodology for European electricity markets.

ACER will reach a decision on the proposal by 9th January 2022.

To take an informed decision, ACER will collect inputs by discussing with TSOs and NRAs in the course of the decision making process.

What is the benefit of having a congestion income distribution methodology for Europe?

The methodology ensures a transparent and non-discriminatory sharing of congestion income among TSOs. Congestion income is defined as the revenue resulting from the capacity allocation in the single day-ahead and intraday market coupling.

Thereby, the methodology:

  • facilitates the efficient long-term operation and development of the electricity transmission system,
  • simplifies the efficient operation of the EU internal electricity market,
  • allows for reasonable financial planning and
  • reflects the general principles for congestion management provided by the Regulation on the internal market for electricity.

How does ACER contribute?

ACER ensures the decision on all-TSOs’ proposal is in line with the objectives of the CACM Regulation and fulfils the legal obligations set out by its Article 73.