Commission Regulation (EU) No 838/2010Show full title

Commission Regulation (EU) No 838/2010

of 23 September 2010

on laying down guidelines relating to the inter-transmission system operator compensation mechanism and a common regulatory approach to transmission charging

(Text with EEA relevance)

THE EUROPEAN COMMISSION,

Having regard to the Treaty on the Functioning of the European Union,

Having regard to Regulation (EC) No 714/2009 of the European Parliament and of the Council on conditions for access to the network for cross-border exchanges in electricity and repealing Regulation (EC) No 1228/2003(1), and in particular the first sentence of Article 18 (5) thereof,

Whereas:

(1) Commission Regulation (EU) No 774/2010 of 2 September 2010 on laying down guidelines relating to inter-transmission system operator compensation and a common regulatory approach to transmission charging(2) establishes a mechanism for the compensation of transmission system operators for the costs of hosting cross-border flows of electricity and a common regulatory approach to transmission charging. However, that Regulation will expire on 2 March 2011.

(2) In order to ensure the continuity of implementation the inter-transmission system operator compensation mechanism, new guidelines specified in Article 18(1) and (2) of Regulation (EC) No 714/2009 of 13 July 2009 should be adopted which reflect the institutional framework established by that Regulation. In particular, the Agency for the Co-operation of Energy Regulators (hereinafter ‘the Agency’), established by Regulation (EC) No 713/2009 of the European Parliament and of the Council(3) should be responsible for monitoring the implementation of the inter-transmission system operator compensation mechanism.

(3) Binding guidelines establishing an inter-transmission system operator compensation mechanism should establish a stable basis for the operation of the inter-transmission system operator compensation mechanism and fair compensation to transmission system operators for the costs of hosting cross-border flows of electricity.

(4) Transmission system operators from third countries or from territories which have concluded agreements with the Union whereby they have adopted and are applying Union law in the field of electricity should be entitled to participate in the inter-transmission system compensation Mechanism on an equivalent basis to transmission system operators from Member States.

(5) It is appropriate to allow transmission system operators in third countries which have not concluded agreements with the Union whereby they have adopted and are applying Union law in the field of electricity to enter into multi-party agreements with the transmission system operators in the Member States which enable all parties to be compensated for the costs of hosting cross-border flows of electricity on a fair and equitable basis.

(6) Transmission system operators should be compensated for energy losses resulting from hosting cross-border flows of electricity. Such compensation should be based on an estimate of what losses would have been incurred in the absence of transits of electricity.

(7) A fund should be established to compensate transmission system operators for the costs of making infrastructure available to host cross-border flows of electricity. The value of this fund should be based on a Union-wide assessment of the long run average incremental costs of making infrastructure available to host cross-border flows of electricity.

(8) The Union-wide assessment of electricity transmission infrastructure associated with facilitating cross-border flows of electricity should be carried out by the Agency as the body responsible for coordinating the activities of regulatory authorities who must carry out a similar function at a national level.

(9) Transmission system operators in third countries should face the same costs for using the Union transmission system as transmission system operators in Member States.

(10) Variations in charges faced by producers of electricity for access to the transmission system should not undermine the internal market. For this reason average charges for access to the network in Member States should be kept within a range which helps to ensure that the benefits of harmonisation are realised.

(11) The measures provided for in this Regulation are in accordance with the opinion of the Committee set up by Article 46 of Directive 2009/72/EC of the European Parliament and of the Council(4),

HAS ADOPTED THIS REGULATION:

F1 Article 1 U.K.

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Textual Amendments

F1 Art. 1 omitted (31.12.2020) by virtue of The Electricity Network Codes and Guidelines (Markets and Trading) (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/532), reg. 1(1), Sch. 1 para. 2 (as amended by S.I. 2020/1016, regs. 1(2), 5(2)); 2020 c. 1, Sch. 5 para. 1(1)

Article 2 U.K.

Charges applied by network operators for access to the transmission system shall be in accordance with guidelines set out in Part B of the Annex.

Article 3 U.K.

This Regulation shall enter into force on the 20th day following its publication in the Official Journal of the European Union.

It shall apply from 3 March 2011.

F2 ...

Done at Brussels, 23 September 2010.

For the Commission

The President

José Manuel Barroso

Textual Amendments

F2 Words in Signature omitted (31.12.2020) by virtue of The Electricity Network Codes and Guidelines (Markets and Trading) (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/532), reg. 1(1), Sch. 1 para. 3 (as amended by S.I. 2020/1016, regs. 1(2), 5(2)); 2020 c. 1, Sch. 5 para. 1(1)

ANNEX U.K.

F3 PART A U.K. Guidelines on the Inter-Transmission System Operator Compensation Mechanism

1. General Provisions U.K.

1.1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

1.2. The European Network of Transmission System Operators for Electricity (ENTSO for Electricity) set up in accordance with Article 5 of Regulation (EC) 714/2009 shall establish an ITC fund for the purpose of compensating transmission system operators for the costs of hosting cross-border flows of electricity. U.K.

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1.3. Contributions to the ITC Fund shall be calculated in accordance with points 6 and 7. U.K.

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1.4. The Agency shall oversee the implementation of the ITC mechanism and report to the Commission each year on the implementation of the ITC mechanism and the management of the ITC fund. U.K.

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1.5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

1.6. Transit of electricity shall be calculated, normally on an hourly basis, by taking the lower of the absolute amount of imports of electricity and the absolute amount of exports of electricity on interconnections between national transmission systems. U.K.

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1.7. For the purposes of this part of the Annex, the net flow of electricity shall mean the absolute value of the difference between total exports of electricity from a given national transmission system to countries where the TSOs participate in the ITC Mechanism and total imports of electricity from countries where the TSOs participate in the ITC Mechanism to the same transmission system. U.K.

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1.8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

2. Participation in the ITC mechanism U.K.

2.1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

2.2. Transmission system operators from third countries which have concluded agreements with the Union whereby they have adopted and are applying Union law in the field of electricity shall be entitled to participate in the ITC mechanism. U.K.

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3. Multi-Party Agreements U.K.

3.1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

3.2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

3.3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

3.4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

3.5. ENTSO for Electricity shall submit all such multi-party agreements to the Commission for its opinion as to whether continuation of the multi-party agreement promotes the completion and functioning of the internal market in electricity and cross-border trade. The opinion of the Commission shall address in particular: U.K.

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3.6. In preparing the opinion referred to in point 3.5 the Commission shall consult all the Member States, taking particular account of the views of those Member States sharing a border with the relevant third country. U.K.

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4. Compensation for Losses U.K.

4.1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

4.2. The amount of losses incurred on a national transmission system shall be established by calculating the difference between: U.K.

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4.3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

4.4. The value of losses incurred by a national transmission system as a result of the cross-border flow of electricity shall be calculated on the same basis as that approved by the regulatory authority in respect of all losses on the national transmission systems. The Agency shall verify the criteria for the valuation of losses at national level taking particular account that losses are valued in a fair and non-discriminatory way. U.K.

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5. Compensation for provision of infrastructure for cross-border flows of electricity U.K.

5.1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

5.2. The annual cross-border infrastructure compensation sum shall be apportioned amongst transmission system operators responsible for national transmission systems in proportion to: U.K.

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5.3. The Agency shall make the proposal on the annual cross-border infrastructure compensation sum referred to in point 5.1 based on a Union-wide assessment of the infrastructure of electricity transmission associated with facilitating cross-border flows of electricity. The Agency shall undertake its best endeavours to carry out an assessment within two years of the date of application of this Regulation. ENTSO for Electricity shall provide the Agency with all assistance necessary for the purposes of carrying out this assessment. U.K.

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5.4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

5.5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

6. Contributions to the ITC Fund U.K.

6.1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

7. Transmission system use fee on third country imports and exports of electricity. U.K.

7.1. A transmission system use fee shall be paid on all scheduled imports and exports of electricity from all third countries where: U.K.

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7.2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

7.3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

Textual Amendments

F3 Annex Pt. A omitted (31.12.2020) by virtue of The Electricity Network Codes and Guidelines (Markets and Trading) (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/532), reg. 1(1), Sch. 1 para. 4 (as amended by S.I. 2020/1016, regs. 1(2), 5(2)); 2020 c. 1, Sch. 5 para. 1(1)

PART B U.K. Guidelines for A Common Regulatory Approach to Transmission Charging

1. Annual average transmission charges paid by producers in [F4 Great Britain] shall be within the [F5 range] set out in point 3. U.K.

Textual Amendments

F4 Words in Annex Pt. B para. 1 substituted (31.12.2020) by The Electricity Network Codes and Guidelines (Markets and Trading) (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/532), reg. 1(1), Sch. 1 para. 5(a)(i) (as amended by S.I. 2020/1016, regs. 1(2), 5(2)(4)); 2020 c. 1, Sch. 5 para. 1(1)

F5 Word in Annex Pt. B para. 1 substituted (31.12.2020) by The Electricity Network Codes and Guidelines (Markets and Trading) (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/532), reg. 1(1), Sch. 1 para. 5(a)(ii) (as amended by S.I. 2020/1016, regs. 1(2), 5(2)); 2020 c. 1, Sch. 5 para. 1(1)

2. Annual average transmission charges paid by producers is annual total transmission tariff charges paid by producers divided by the total measured energy injected annually by producers to the transmission system of [F6 Great Britain]. U.K.

For the calculation set out at Point 3, transmission charges shall exclude:

(1)

charges paid by producers for physical assets required for connection to the system or the upgrade of the connection;

(2)

charges paid by producers related to ancillary services;

(3)

specific system loss charges paid by producers.

Textual Amendments

F6 Words in Annex Pt. B para. 2 substituted (31.12.2020) by The Electricity Network Codes and Guidelines (Markets and Trading) (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/532), reg. 1(1), Sch. 1 para. 5(b) (as amended by S.I. 2020/1016, regs. 1(2), 5(2)(4)); 2020 c. 1, Sch. 5 para. 1(1)

3. [F7 Average annual transmission charges paid by producers in Great Britain shall be within a range of 0 to 2.5 euros per megawatt hour.] U.K.

Textual Amendments

F7 Annex Pt. B para. 3 substituted (31.12.2020) by The Electricity Network Codes and Guidelines (Markets and Trading) (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/532), reg. 1(1), Sch. 1 para. 5(c) (as amended by S.I. 2020/1016, regs. 1(2), 5(2)(4)); 2020 c. 1, Sch. 5 para. 1(1)

4. F8 ... U.K.

Textual Amendments

F8 Annex Pt. B para. 4 omitted (31.12.2020) by virtue of The Electricity Network Codes and Guidelines (Markets and Trading) (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/532), reg. 1(1), Sch. 1 para. 5(d) (as amended by S.I. 2020/1016, regs. 1(2), 5(2)); 2020 c. 1, Sch. 5 para. 1(1)

5. F9 ... U.K.

Textual Amendments

F9 Annex Pt. B para. 5 omitted (31.12.2020) by virtue of The Electricity Network Codes and Guidelines (Markets and Trading) (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/532), reg. 1(1), Sch. 1 para. 5(d) (as amended by S.I. 2020/1016, regs. 1(2), 5(2)); 2020 c. 1, Sch. 5 para. 1(1)

(1)

OJ L 176, 15.7.2003, p. 1.

(2)

OJ L 233, 3.9.2010, p. 1.

(3)

OJ L 211, 14.8.2009, p. 1.

(4)

OJ L 211, 14.8.2009, p. 55.