Commission Regulation (EU) 2015/1222Show full title

TITLE III U.K. COSTS

CHAPTER 1 U.K. Congestion income distribution methodology for single day-ahead and intraday coupling

Article 73 U.K. Congestion income distribution methodology

1. By 12 months after the entry into force of this Regulation, all TSOs shall develop a proposal for a methodology for sharing congestion income.

2. The methodology developed in accordance with paragraph 1 shall:

(a) facilitate the efficient long-term operation and development of the electricity transmission system and the efficient operation of the electricity market of the Union;

(b) comply with the general principles of congestion management provided for in Article 16 of Regulation (EC) No 714/2009;

(c) allow for reasonable financial planning;

(d) be compatible across time-frames;

(e) establish arrangements to share congestion income deriving from transmission assets owned by parties other than TSOs.

3. TSOs shall distribute congestion incomes in accordance with the methodology in paragraph 1 as soon as reasonably practicable and no later than one week after the congestion incomes have been transferred in accordance with Article 68(8).

CHAPTER 2 U.K. Redispatching and countertrading cost sharing methodology for single day-ahead and intraday coupling

Article 74 U.K. Redispatching and countertrading cost sharing methodology

1. No later than 16 months after the decision on the capacity calculation regions is taken, all TSOs in each capacity calculation region shall develop a proposal for a common methodology for redispatching and countertrading cost sharing.

2. The redispatching and countertrading cost sharing methodology shall include cost-sharing solutions for actions of cross-border relevance.

3. Redispatching and countertrading costs eligible for cost sharing between relevant TSOs shall be determined in a transparent and auditable manner.

4. The redispatching and countertrading cost sharing methodology shall at least:

(a) determine which costs incurred from using remedial actions, for which costs have been considered in the capacity calculation and where a common framework on the use of such actions has been established, are eligible for sharing between all the TSOs of a capacity calculation region in accordance with the capacity calculation methodology set out in Articles 20 and 21;

(b) define which costs incurred from using redispatching or countertrading to guarantee the firmness of cross-zonal capacity are eligible for sharing between all the TSOs of a capacity calculation region in accordance with the capacity calculation methodology set out in Articles 20 and 21;

(c) set rules for region-wide cost sharing as determined in accordance with points (a) and (b).

5. The methodology developed in accordance with paragraph 1 shall include:

(a) a mechanism to verify the actual need for redispatching or countertrading between the TSOs involved;

(b) an ex post mechanism to monitor the use of remedial actions with costs;

(c) a mechanism to assess the impact of the remedial actions, based on operational security and economic criteria;

(d) a process allowing improvement of the remedial actions;

(e) a process allowing monitoring of each capacity calculation region by the competent regulatory authorities.

6. The methodology developed in accordance with paragraph 1 shall also:

(a) provide incentives to manage congestion, including remedial actions and incentives to invest effectively;

(b) be consistent with the responsibilities and liabilities of the TSOs involved;

(c) ensure a fair distribution of costs and benefits between the TSOs involved;

(d) be consistent with other related mechanisms, including at least:

(i)

the methodology for sharing congestion income set out in Article 73;

(ii)

the inter-TSO compensation mechanism, as set out in Article 13 of Regulation (EC) No 714/2009 and Commission Regulation (EU) No 838/2010(1);

(e) facilitate the efficient long-term development and operation of the pan-European interconnected system and the efficient operation of the pan-European electricity market;

(f) facilitate adherence to the general principles of congestion management as set out in Article 16 of Regulation (EC) No 714/2009;

(g) allow reasonable financial planning;

(h) be compatible across the day-ahead and intraday market time-frames; and

(i) comply with the principles of transparency and non-discrimination.

7. By 31 December 2018, all TSOs of each capacity calculation region shall further harmonise as far as possible between the regions the redispatching and countertrading cost sharing methodologies applied within their respective capacity calculation region.

CHAPTER 3 U.K. Capacity allocation and congestion management cost recovery

Article 75 U.K. General provisions on cost recovery

1. Costs relating to the obligations imposed on TSOs in accordance with Article 8, including the costs specified in Article 74 and Articles 76 to 79, shall be assessed by the competent regulatory authorities. Costs assessed as reasonable, efficient and proportionate shall be recovered in a timely manner through network tariffs or other appropriate mechanisms as determined by the competent regulatory authorities.

2. Member States' share of the common costs referred to in Article 80(2)(a), regional costs referred to in Article 80(2)(b) and national costs referred to in Article 80(2)(c) assessed as reasonable, efficient and proportionate shall be recovered through NEMO fees, network tariffs or other appropriate mechanisms as determined by the competent regulatory authorities.

3. If requested by the regulatory authorities, relevant TSOs, NEMOs and delegates in accordance with Article 78 shall, within three months of the request, provide information necessary to facilitate the assessment of the costs incurred.

Article 76 U.K. Costs of establishing, amending and operating single day-ahead and intraday coupling

1. All NEMOs shall bear the following costs:

(a) common, regional and national costs of establishing, updating or further developing the price coupling algorithm and single day-ahead coupling;

(b) common, regional and national costs of establishing, updating or further developing the continuous trading matching algorithm and single intraday coupling;

(c) common, regional and national costs of operating single day-ahead and intraday coupling.

2. Subject to agreement with the NEMOs concerned, TSOs may make a contribution to the costs provided for in paragraph 1 subject to approval by the relevant regulatory authorities. In such cases, within two months of receiving a forecast from the NEMOs concerned, each TSO shall be entitled to provide a cost contribution proposal to the relevant regulatory authority for approval.

3. The NEMOs concerned shall be entitled to recover costs in accordance with paragraph 1 which have not been borne by TSOs in accordance with paragraph 2 by means of fees or other appropriate mechanisms only if the costs are reasonable and proportionate, through national agreements with the competent regulatory authority.

Article 77 U.K. Clearing and settlement costs

1. All costs incurred by central counter parties and shipping agents shall be recoverable by means of fees or other appropriate mechanisms if they are reasonable and proportionate.

2. The central counter parties and shipping agents shall seek efficient clearing and settlement arrangements avoiding unnecessary costs and reflecting the risk incurred. The cross-border clearing and settlement arrangements shall be subject to approval by the relevant national regulatory authorities.

Article 78 U.K. Costs of establishing and operating the coordinated capacity calculation process

1. Each TSO shall individually bear the costs of providing inputs to the capacity calculation process.

2. All TSOs shall bear jointly the costs of merging the individual grid models.

All TSOs in each capacity calculation region shall bear the costs of establishing and operating the coordinated capacity calculators.

3. Any costs incurred by market participants in meeting the requirements of this Regulation shall be borne by those market participants.

Article 79 U.K. Costs of ensuring firmness

The costs of ensuring firmness in accordance with Articles 70(2) and 71 shall be borne by the relevant TSOs, to the extent possible in accordance with Article 16(6)(a) of Regulation (EC) No 714/2009. These costs shall include the costs from compensation mechanisms associated with ensuring the firmness of cross-zonal capacities as well as the costs of redispatching, countertrading and imbalance associated with compensating market participants.

Article 80 U.K. Cost sharing between NEMOs and TSOs in different Member States

1. All relevant NEMOs and TSOs shall provide a yearly report to the regulatory authorities in which the costs of establishing, amending and operating single day-ahead and intraday coupling are explained in detail. This report shall be published by the Agency taking due account of sensitive commercial information. Costs directly related to single day-ahead and intraday coupling shall be clearly and separately identified and auditable. The report shall also provide full details of contributions made to NEMO costs by TSOs in accordance with Article 76(2).

2. The costs referred to in paragraph 1 shall be broken down into:

(a) common costs resulting from coordinated activities of all NEMOs or TSOs participating in the single day-ahead and intraday coupling;

(b) regional costs resulting from activities of NEMOs or TSOs cooperating in a certain region;

(c) national costs resulting from activities of the NEMOs or TSOs in that Member State.

3. Common costs referred to in paragraph 2(a) shall be shared among the TSOs and NEMOs in the Member States and third countries participating in the single day-ahead and intraday coupling. To calculate the amount to be paid by the TSOs and NEMOs in each Member State and, if applicable, third countries, one eighth of the common cost shall be divided equally between each Member State and third country, five eighths shall be divided between each Member State and third country proportionally to their consumption, and two eighths shall be divided equally between the participating NEMOs. To take into account changes in the common costs or changes in the participating TSOs and NEMOs, the calculation of common costs shall be regularly adapted.

4. NEMOs and TSOs cooperating in a certain region shall jointly agree on a proposal for the sharing of regional costs in accordance with paragraph 2(b). The proposal shall then be individually approved by the competent national authorities of each of the Member States in the region. NEMOs and TSOs cooperating in a certain region may alternatively use the cost sharing arrangements set out in paragraph 3.

5. The cost sharing principles shall apply to costs incurred from the entry into force of this Regulation. This is without prejudice to existing solutions used for the development of single day-ahead and intraday coupling and costs incurred prior to the entry into force of this Regulation shall be shared among the NEMOs and TSOs based on the existing agreements governing such solutions.

(1)

Commission Regulation (EU) No 838/2010 of 23 September 2010 on laying down guidelines relating to the inter-transmission system operator compensation mechanism and common regulatory approach to transmission charging (OJ L 250, 24.9.2010, p. 5).