ACER issues guidance to ENTSOG on the first network code amendment

ACER published today – along with the Framework Guidelines on Harmonised Transmission Tariff Structures – its guidance to ENTSOG on the development of amendment proposals to the Network Code on Capacity Allocation Mechanisms (NC CAM) on the matter of incremental and new capacity. The NC CAM focuses on the allocation of existing capacity at interconnection points (IPs), while harmonised market-based processes for the identification, offer and allocation of incremental and new capacity at existing or new IPs are yet absent. Therefore - and as recommended by the Madrid Forum - regulators developed the CEER Blueprint on Incremental Capacity, which formed the basis for the present consolidated ACER guidance. This guidance will be basis of the first amendment to the NC CAM. The document develops principles for when and how capacity beyond existing capacity shall be offered and allocated to network users. It also stipulates the integration of incremental and new capacity to capacity allocation within the NC CAM’s annual yearly capacity auctions. At the same time it foresees provisions on when open season procedures can be applied (e.g. in case of large and complex projects extending across more than two market areas). ACER’s guidance also sets out requirements for information provision and co-ordination between TSOs and NRAs for the related processes. The tariff provisions and economic tests are considered as inputs to the capacity allocation procedures and shall be developed under the Network Code process on Harmonised Transmission Tariff Structures. Within the framework provided by ACER’s guidance paper, ENTSOG may develop, consult and propose detailed amendments to the NC CAM to ACER by the end of 2014. The Agency will consult them with stakeholders and may make a reasoned proposal for amendments to the Commission, which may in turn launch a Comitology procedure to make them legally binding. Additional information can be found here.