In January 2022, the EU Agency for the Cooperation of Energy Regulators (ACER) and the European University Institute (EUI) signed a knowledge partnership agreement with the aim of informing the energy policy debate and advancing regulatory thinking in Europe.

Since 2010, ACER and the EUI’s Florence School of Regulation (FSR Energy), hosted within the Robert Schuman Centre for Advanced Studies (RSC), have been cooperating on a number of initiatives including policy events, training courses, and development of new research in the field of energy policy and regulation. In this context, ACER experts regularly participate in policy events and contribute to training courses organised by the FSR, bringing direct practical experience in European energy regulation.

“Energy Regulators, particular those based in Europe, are one of the FSR Energy and Climate’s most important stakeholders. The FSR aims at informing the regulatory debate in Europe through its research and policy events and, therefore, having an early insight on the forthcoming issues is essential to maintain its relevance. ACER is thus a key interlocutor.”

Alberto Pototschnig, FSR Energy Deputy Director for Policy Affairs

As the issues facing the energy sector are evolving and becoming more complex in order to achieve the ambitious energy and climate policy targets and accomplish the associated energy transition, the two organisations stand to benefit even more from a close cooperation.

“The energy sector is changing rapidly. Only by adopting a multidisciplinary approach and by engaging with different stakeholders, ACER can stay abreast of the game and contribute to a smooth transition to a low carbon energy system. In this respect, the partnership with FSR Energy is key: it provides a high-quality platform for policy debate and research and allows our staff to access an excellent faculty of global regulatory experts.”

Christian Zinglersen, ACER Director

In the framework of the partnership, the following activities will be co-designed and delivered:

• FSR Training Courses offered to or involving ACER staff;

• Exchange of views on topics of mutual interest;

• Events on a variety of topics and with diverse formats, involving the partners and external stakeholders;

• Research activities on current energy topics; and

• Study visits to ACER for EUI scholars.

On 3 January 2022, the EU Agency for the Cooperation of Energy Regulators (ACER) received a proposal from the European Network of Transmission System Operators for Electricity (ENTSO-E) regarding the Regional Coordination Centre (RCC) Post-Operation and Post-Disturbances Analysis and Reporting Methodology.

The Electricity Regulation lists the RCCs’ tasks and their roles. Among those tasks, the Regulation mandates the obligation for RCCs to carry out post-operation and post-disturbances analysis. The proposed methodology describes the RCC investigation, explains the data collection process, prescribes the work of the expert panel and guides the RCCs in preparing the post-disturbances report.

What are the next steps?

ACER will reach a decision on the proposal by 3 April 2022.

In order to inform its assessment, ACER invites interested third parties to submit their observations by 31 January 2022 to ACER-ELE-2022-001(at)acer.europa.eu.

Access the ACER Public Notice.

Access the ENTSO-E’s proposal on the RCC Post-Operation and Post-Disturbances Analysis and Reporting Methodology.

ACER publishes today the first Implementation Monitoring Report (the Report) on progress in Member States in implementing the EU-wide Network Code on Electricity Emergency and Restoration.

This Network Code provides the requirements that Transmission System Operators (TSOs) must follow in electricity emergency, blackout and restoration states. If TSOs follow these rules when they face an incident on their grid it helps prevent incidents deteriorating into blackouts and allows for an efficient and rapid restoration of the electricity system to a normal state from the emergency or blackout states.

Key Findings:

ACER finds that while implementation of the electricity grid emergency and restoration rules is well on track (e.g. on regional coordination, on suspension and restoration of market activities and on tools and facilities), there is still not a complete and uniform EU-wide implementation of this legally binding Network Code.  For example, there is still scope to improve:

• Measures of the system defence plan that are to be implemented on the grid.

• Measures of the restoration plans. 

• Assessment of the costs borne by system operators subject to network tariff regulation and stemming from the obligations laid down in the Network Code.

Why is it important to follow the electricity emergency and restoration rules?

A secure and efficient operation of the EU electricity system is a task shared between all the EU.

TSOs since all national systems are, to a certain extent, interconnected and a disturbance in one control area could affect another.

Hence, ACER underlines the importance of a correctly and fully implemented Emergency and Restoration Network Code to prevent the deterioration of an incident in a national system and to avoid the spread of disturbances to other areas and to enable swift restoration of the system back to normal state after a disturbance.

Hence, ACER underlines the importance of a correctly and fully implemented Emergency and Restoration Network Code to prevent the deterioration of an incident in a national system and to avoid the spread of disturbances to other control areas and to enable swift restoration of the system back to normal state after a disturbance.

ACER Recommendations:

ACER urges a prompt implementation of the articles of the Network Code that have already entered into force and invites the relevant NRAs to ensure a timely and complete application of the provisions that will apply as of 2022.

Access the report.

ACER publishes today its second series of reports on the implementation of the European Union Network Code on Harmonised Transmission Tariff Structures for Gas for both transmission systems in Poland: the national transmission system and the SGT pipeline. The latter refers to the Polish section of the Yamal transit pipeline, running from Russia through Belarus and Poland to Western Europe.

Regarding the national transmission system, ACER recommends that the Polish national regulatory authority for energy (URE), further justifies the reference price methodology (RPM) with the requirements of the Tariff Network Code, providing additional transparency regarding the expected use of the network. The Agency also recommends that the NRA provides additional transparency on investment projects. The NRA should also set a fixed entry-exit split or should provide due justification on the conditions that would trigger a change of the split.

Regarding the section of the SGT pipeline within Poland, the Agency recommends that URE further justifies the RPM, including additional clarity on the contracted capacity forecast, the detailed calculation steps of the methodology, and the calculation of the cost allocation assessment.

The Polish NRA shall take both motivated decisions by 31 March 2022.

Find out more and access all ACER reports on national tariff consultation documents.

An incident which took place in Poland’s Rogowiec substation on the 17 May 2021 led to the tripping of ten generation units of the Bełchatów power plant and a loss of 3,322 MW of generation capacity.

ACER and national regulators join ENTSO-E’s Expert Panel investigating the incident.

The Expert Panel’s Final Report is expected in Quarter 1 2022.

See here the ACER-ENTSO-E joint press release (of 21 December 2021).

ACER and Europe’s energy regulators welcome the European Commission’s hydrogen and decarbonised gas market legislative package.  In their joint Position Paper on Key Regulatory Requirements to Achieve Gas Decarbonisation, ACER and CEER provide recommendations in three areas:

• Enabling gradual and flexible regulation for hydrogen.

• Ensuring a level playing field in a decarbonised and integrated energy system.

• Empowering and protecting consumers for the energy transition.

It is clear that a successful energy transition must not only meet decarbonisation targets but also must meet consumers’ legitimate expectations of having reliable and affordable energy services. ACER and CEER set out nine key recommendations to carry out a successful energy transition:

1. Adopt a gradual and flexible regulatory approach to facilitate the emergence of competitive hydrogen markets, by defining core market and regulatory principles, guaranteeing a level playing field, ownership unbundling, third-party access, transparency and regulatory oversight;

2. Monitor hydrogen markets periodically to identify their development and whether more regulation is needed;

3. Apply cost reflectivity and beneficiary-pays principles to hydrogen networks, avoiding cross-subsidies between energy carriers;

4. Ensure an integrated, liquid and interoperable EU internal gas market, including by foreseeing a more flexible approach to the application of relevant network codes with respect to specific cross-border charges;

5. Adopt a more integrated approach to infrastructure development, both in relation to different levels of the supply chain (vertical), and to the various energy carriers (horizontal), consistent with the revised TEN-E Regulation;

6. Guarantee consumer rights regardless of energy carrier;

7. Embed robust consumer protection, future innovation, technology developments and new market trends in decarbonisation policies, recognising the specificities of gas markets;

8. Ensure cost efficiency and affordability to safeguard inclusiveness and a just transition, including by promoting and facilitating energy efficiency measures and information; and

9. Provide consumers with clear and reliable information and support, as well as ensure effective enforcement of their rights and consumer-centric digitalisation rules to enhance their empowerment and trust in the energy transition.

ACER and CEER stand ready to provide advice and they continue to work towards putting the consumer at the centre of the energy transition by promoting consumer awareness and protection.