ACER reports on implementation of the Inter-Transmission System Operator Compensation mechanism in 2020
ACER reports on implementation of the Inter-Transmission System Operator Compensation mechanism in 2020
What is it about?
The EU Agency for the Cooperation of Energy Regulators (ACER) publishes today its report on implementation of the Inter-Transmission System Operator Compensation mechanism (ITC) covering the year 2020.
In this latest edition, ACER notes the Inter-Transmission System Operator Compensation Fund amounted to 352.8 million Euros, reaching its highest ever value. The increase is mainly due to a significant increase (29%) of the losses volume due to transits in 2020 compared to 2019.
ACER also observes that after a gradual decrease of the weighted average of transmission losses costs in the period 2012-2017, it started to increase, reaching 51.21 EUR/MWh in 2020 (45% higher than its value in 2017).
In 2020, perimeter countries contributed with 10.8 million Euros to the Fund, reducing their contribution by almost 50% if compared with the previous year. This contribution is also the lowest value since the ITC Fund was established. ACER concludes this is due by the significant decrease in the volume of the scheduled flows between the Perimeter countries and the ITC parties in 2020 as well as the decrease of the Perimeter countries’ fee.
Background:
The Inter-Transmission System Operator Compensation (ITC) mechanism was established by the European Network of Transmission System Operators for Electricity (ENTSO-E) to compensate transmission system operators (‘TSOs’) for the costs incurred on national transmission systems due to hosting cross-border flows of electricity (‘transits’).
The ITC Fund is mainly a redistribution of yearly payments among the participating TSOs (‘ITC Parties’) who receive compensation from the ITC Fund based on the transits they carry and contribute to the ITC Fund based on their net import and export flows.
Non-participating countries connected to the ITC Parties’ networks (‘Perimeter countries’) pay a transmission system use fee for their scheduled imports from and scheduled exports to the ITC Parties’ networks.