ACER decision on fallback procedures for the Core Capacity Calculation Region


ACER decision on fallback procedures for the Core Capacity Calculation Region

 In a Decision recently published, ACER revised the methodology proposed by Transmission System Operators of Austria, Belgium, Croatia, the Czech Republic, France, Germany, Hungary, Luxembourg, Netherlands, Poland, Romania, Slovakia and Slovenia - which will apply a coordinated calculation and allocation of the capacity between bidding zones (the Core Capacity Calculation Region) - for establishing the rules for alternative capacity allocation - fallback procedures - in the event that the single day-ahead coupling process is unable to produce results. For alternative capacity allocation a shadow auction is proposed, such that when single day-ahead coupling fails, the cross-zonal capacity is auctioned as a standalone product, in contrast to single day-ahead coupling where it is auctioned combined with energy.
The methodology was originally developed by the TSOs of the above-mentioned countries and submitted for approval to their respective National Regulatory Authorities (NRAs). As NRAs could not reach an agreement, the case was referred to the Agency, which introduced several amendments to the proposal and harmonised the shadow allocation rules.

 Acces the decision here.
Access the Core CCR fallback procedures hereBackground  In March 2018, the Agency became competent to decide on the amended proposal from the Core Capacity Calculation Region (CCR) TSOs on the Core CCR fallback procedures. The decision was referred to the Agency since one regulatory authority could not approve the proposal from the Core TSOs on the grounds that it contains shadow allocation rules.

 In August 2018, the Agency consulted all interested stakeholders on this issue (see the details here​). The Core TSO proposal contained the main document with fallback procedures and five annexes containing the shadow allocation rules for different bidding zone borders and different timeframes. The Agency’s decision introduced minimum changes to fallback procedures aimed at improving legal clarity and enforceability. Instead of five different shadow allocation rules, the Agency adopted one single set of shadow allocation rules and explained to which bidding zone borders they are applicable. These shadow allocation rules will be applied by the single allocation platform. 
 The most notable amendments to the methodology are related to:
  • the improvements of the definitions and terms used;
  • the adoption of single set of shadow allocation rules instead of five different ones;
  • the provision of transitional arrangements for the bidding zone borders of the Four Markets Market Coupling region (Czech Republic - Slovakia, Slovakia - Hungary, Hungary - Romania);
  • the alignment of the annexed shadow allocation rules with the harmonised allocation rules established pursuant to the FCA Regulation;
  • the removal of all references to specific CCR from shadow allocation rules, aiming to enable the use of the same shadow allocation rules in other CCRs, whereas region specific requirements would not be contained in the shadow allocation rules, but rather published by the allocation platform.​
For more information, please see the De​cision here.