Approval by All Regulatory Authorities in the capacity calculation region Hansa
on
the revised Hansa TSOs’ common methodology for regional redispatching and countertrading cost sharing in the capacity calculation region Hansa in accordance with Article
74 of the Commission Regulation (EU) 2015/1222 of 24 July 2015 establishing a guideline on capacity allocation and
congestion management
10 March 2021
I. Conclusion
This document proves evidence that all the Regulatory Authorities (Autoriteit Consument &
Markt, Bundesnetzagentur, Danish Utility Regulator, Energimarknadsinspektionen and Urząd Regulacji Energetyki) have reached an agreement on March 10, 2021 on the revision and on the approval of the amended proposal for the methodology for regional redispatching and
countertrading cost sharing in the capacity calculation region Hansa (hereinafter referred to as
“RCCS methodology”) in accordance with Article 74 of the Commission Regulation (EU) 2015/1222 of 24 July 2015 establishing a guideline on capacity allocation and congestion management (hereinafter referred to as “CACM Regulation”). The views of
Reguleringsmyndigheten for energi (“RME-NVE”) have been acknowledged in the process.
II. Introduction and legal context
This agreement of the NRAs shall provide evidence that a decision on the amended RCCS methodology does not need to be adopted by ACER pursuant to Article 9(11), (12) of the CACM Regulation. This document is intended to constitute the basis on which all NRAs will each subsequently issue national decisions pursuant to Article 9(7)(h) of the CACM Regulation to approve the amended RCCS methodology.
The legal provisions relevant to the submission and approval of the amended RCCS
methodology are Articles 1(1), 3, 9(7)(h), (9), (10), (11), (12), 12, 35(5), (6), 74 of the CACM Regulation and Articles 5(3), (6) and 6(10) of Regulation (EU) 2019/942 of the European Parliament and the Council of 5 June 2019 establishing a European Union Agency for the Cooperation of Energy Regulators (hereinafter referred to as “ACER Regulation”).
CACM Regulation Article 1(1)
This Regulation lays down detailed guidelines on cross-zonal capacity allocation and congestion management in the day-ahead and intraday markets, including the requirements for the
establishment of common methodologies for determining the volumes of capacity simultaneously available between bidding zones, criteria to assess efficiency and a review process for defining bidding zones.
Article 3
This Regulation aims at:
a) promoting effective competition in the generation, trading and supply of electricity;
b) ensuring optimal use of the transmission infrastructure;
c) ensuring operational security;
d) optimising the calculation and allocation of cross-zonal capacity;
e) ensuring fair and non-discriminatory treatment of TSOs, NEMOs, the Agency, regulatory authorities and market participants;
f) ensuring and enhancing the transparency and reliability of information;
g) contributing to the efficient long-term operation and development of the electricity transmission system and electricity sector in the Union;
h) respecting the need for a fair and orderly market and fair and orderly price formation;
i) creating a level playing field for NEMOs;
j) providing non-discriminatory access to cross-zonal capacity.
Article 9(7)(h)
The proposals for the following terms and conditions or methodologies shall be subject to approval by all regulatory authorities of the concerned region:
…
h) the redispatching or countertrading cost sharing methodology in accordance with Article 74(1).
Article 9(9)
The proposal for terms and conditions or methodologies shall include a proposed timescale for their implementation and a description of their expected impact on the objectives of this
Regulation. Proposals on terms and conditions or methodologies subject to the approval by several or all regulatory authorities shall be submitted to the Agency at the same time that they are submitted to regulatory authorities. Upon request by the competent regulatory authorities, the Agency shall issue an opinion within three months on the proposals for terms and conditions or methodologies.
Article 9(10)
Where the approval of the terms and conditions or methodologies requires a decision by more than one regulatory authority, the competent regulatory authorities shall consult and closely cooperate and coordinate with each other in order reach an agreement. Where applicable, the competent regulatory authorities shall take into account the opinion of the Agency. Regulatory authorities shall take decisions concerning the submitted terms and conditions or methodologies in accordance with paragraphs 6, 7 and 8, within six months following the receipt of the terms and conditions or methodologies by the regulatory authority or, where applicable, by the last regulatory authority concerned.
Article 9(11)
Where the regulatory authorities have not been able to reach agreement within the period referred to in paragraph 10, or upon their joint request, the Agency shall adopt a decision concerning the submitted proposals for terms and conditions or methodologies within six months, in accordance with Article 8(1) of Regulation (EC) No 713/2009.
Article 9(12)
In the event that one or several regulatory authorities request an amendment to approve the terms and conditions or methodologies submitted in accordance with paragraphs 6, 7 and 8, the relevant TSOs or NEMOs shall submit a proposal for amended terms and conditions or
methodologies for approval within two months following the requirement from the regulatory authorities. The competent regulatory authorities shall decide on the amended terms and
conditions or methodologies within two months following their submission. Where the competent regulatory authorities have not been able to reach an agreement on terms and conditions or methodologies pursuant to paragraphs (6) and (7) within the two-month deadline, or upon their joint request, the Agency shall adopt a decision concerning the amended terms and conditions or methodologies within six months, in accordance with Article 8(1) of Regulation (EC) No
713/2009. If the relevant TSOs or NEMOs fail to submit a proposal for amended terms and
conditions or methodologies, the procedure provided for in paragraph 4 of this Article shall apply.
Article 12
1. TSOs and NEMOs responsible for submitting proposals for terms and conditions or methodologies or their amendments in accordance with this Regulation shall consult stakeholders, including the relevant authorities of each Member State, on the draft proposals for terms and conditions or methodologies where explicitly set out in this Regulation. The consultation shall last for a period of not less than one month.
2. The proposals for terms and conditions or methodologies submitted by the TSOs and NEMOs at Union level shall be published and submitted to consultation at Union level.
Proposals submitted by the TSOs and NEMOs at regional level shall be submitted to consultation at least at regional level. Parties submitting proposals at bilateral or at multilateral level shall consult at least the Member States concerned.
3. The entities responsible for the proposal for terms and conditions or methodologies shall duly consider the views of stakeholders resulting from the consultations undertaken in accordance with paragraph 1, prior to its submission for regulatory approval if required in accordance with Article 9 or prior to publication in all other cases. In all cases, a clear and robust justification for including or not the views resulting from the consultation shall be developed in the submission and published in a timely manner before or simultaneously with the publication of the proposal for terms and conditions or methodologies.
Article 35(5)
The relevant generation units and loads shall give TSOs the prices of redispatching and countertrading before redispatching and countertrading resources are committed. Pricing of redispatching and countertrading shall be based on: (a) prices in the relevant electricity markets for the relevant time-frame; or (b) the cost of redispatching and countertrading resources
calculated transparently on the basis of incurred costs.
Article 35(6)
Generation units and loads shall ex-ante provide all information necessary for calculating the redispatching and countertrading cost to the relevant TSOs. This information shall be shared between the relevant TSOs for redispatching and countertrading purposes only.
Article 74
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: 1
(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.
ACER Regulation
Article 5(3)
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).
Where one of the following legal acts provides for the development of proposals for terms and conditions or methodologies for the implementation of network codes and guidelines which require the approval of all the regulatory authorities of the region concerned, those regulatory authorities shall agree unanimously on the common terms and conditions or methodologies to be approved by each of those regulatory authorities:
a) a legislative act of the Union adopted under the ordinary legislative procedure;
b) network codes and guidelines that were adopted before 4 July 2019 and subsequent revisions of those network codes and guidelines; or
c) network codes and guidelines adopted as implementing acts pursuant to Article 5 of Regulation (EU) No 182/2011
The proposals referred to in the first subparagraph shall be notified to ACER within one week of their submission to those regulatory authorities. The regulatory authorities may refer the
proposals to ACER for approval pursuant to point (b) of the second subparagraph of Article 6(10) and shall do so pursuant to point (a) of the second subparagraph of Article 6(10) where there is no unanimous agreement as referred to in the first subparagraph.
The Director or the Board of Regulators, acting on its own initiative or on a proposal from one or more of its members, may require the regulatory authorities of the region concerned to refer the proposal to ACER for approval. Such a request shall be limited to cases in which the regionally agreed proposal would have a tangible impact on the internal energy market or on security of supply beyond the region.
Article 5(6)
Before approving the terms and conditions or methodologies referred to in paragraphs 2 and 3, the regulatory authorities, or, where competent, ACER, shall revise them where necessary, after consulting the ENTSO for Electricity, the ENTSO for Gas or the EU DSO entity, in order to ensure that they are in line with the purpose of the network code or guideline and contribute to market integration, non-discrimination, effective competition and the proper functioning of the market. ACER shall take a decision on the approval within the period specified in the relevant network codes and guidelines. That period shall begin on the day following that on which the proposal was referred to ACER.
Article 6(10)
ACER shall be competent to adopt individual decisions on regulatory issues having effects on cross-border trade or cross-border system security which require a joint decision by at least two regulatory authorities, where such competences have been conferred on the regulatory
authorities under one of the following legal acts:
a) a legislative act of the Union adopted under the ordinary legislative procedure;
b) network codes and guidelines adopted before 4 July 2019 and subsequent revisions of those network codes and guidelines; or
c) network codes and guidelines adopted as implementing acts pursuant to Article 5 of Regulation (EU) No 182/2011.
ACER shall be competent to adopt individual decisions as specified in the first subparagraph in the following situations:
a) where the competent regulatory authorities have not been able to reach an agreement within six months of referral of the case to the last of those regulatory authorities, or
within four months in cases under Article 4(7) of this Regulation or under point (c) of Article (59)(1) or point (f) of Article 62(1) of Directive (EU) 2019/944; or
b) on the basis of a joint request from the competent regulatory authorities.
The competent regulatory authorities may jointly request that the period referred to in point (a) of the second subparagraph of this paragraph be extended by a period of up to six months, except in cases under Article 4(7) of this Regulation or under point (c) of Article 59(1) or point (f) of Article 62(1) of Directive (EU) 2019/944.
III. The RCCS methodology
On 20 February 2019 Hansa NRAs BNetzA, DUR, EI and URE approved the proposal by the Hansa TSOs 50Hertz, Energinet.dk, PSE, Svenska Kraftnät and TenneT DE for a methodology for regional RCCS methodology in the capacity calculation region Hansa. In its Decision No.
04/2019 on CCRs of 01 April 2019 ACER decided to add the Cobra Cable connecting the bidding zones of Denmark 1with the bidding zone of the Netherlands to the capacity calculation region Hansa. Hence, the TSOs including TenneT NL (re-)submitted the approved
methodologies including the RCCS methodology to the Hansa NRAs including ACM.
Subsequently, the last NRA received the TSOs’ proposal for a methodology for regional RCCS in the capacity calculation region Hansa on 30 September 2019 together with a separate
explanatory document and the necessary national translations. According to Article 9(10) of the CACM Regulation, the deadline for agreement of NRAs would have ended on 30 March 2020.
The NRAs, especially in the light of expecting a decision by the European Commission on the exemption for Kriegers Flak Combined Grid Solution2 requested ACER on 6 March 2020 to grant a six-month extension, according to the third subparagraph of Article 6(10) of the ACER Regulation, thereby postponing the deadline to 30 September 2020.
On 30 September 2020 the NRAs submitted a joint Request for Amendment in accordance with Article 9(12) of the CACM Regulation to TSOs and requested to amend the proposal by taking into account the following key points:
Amending references to Regulation (EU) No 714/2009 and Directive 2009/72/EC, into
references to Regulation (EU) 2019/943 and Directive (EU) 2019/944 respectively including a provision on governance
Adding a reference to the relevant Article of the CACM Regulation in the TSOs’ note to the Hansa RCCS Methodology
Adding an information on cost sharing of “new” types of costs, not specifically following from Article 74 of the CACM Regulation
2 Commission Decision (EU) 2020/2123 of 11 November 2020: https://eur-lex.europa.eu/legal-
content/EN/TXT/HTML/?uri=CELEX:32020D2123&from=EN, published in English language on 17.12.2020 (29.01.2021)
Feldfunktion
Adjusting Article 3(1)(c), Article 3(2)(a) to (b), and Annex 1 of the RCCS methodology, depending on the European Commission’s - at that time - pending decision on Kriegers Flak Combined Grid Solution
The amended proposal for regional RCCS in the capacity calculation region Hansa was submitted to the NRAs on 18 December 2020 together with a separate explanatory document.
The necessary national translations were finalized on 15 January 2021. The last NRA received the amended proposal on 15 January 2021.
Article 9(12) of CACM Regulation requires NRAs to consult, closely cooperate, and coordinate with each other in order to reach agreement and make decisions within two months following receipt of submissions of the last NRA concerned. A decision is therefore required by each NRA by 15 March 2021.
The NRAs closely cooperate and coordinate with each other in order to reach an agreement on the revision and adoption of the amended proposal.
On 26 January 2021 the NRAs engaged the process of revising the proposal for regional RCCS in the capacity calculation region Hansa pursuant to Article 5(6) of the ACER Regulation. The NRAs agreed to clarify the interrelation between the Commission Decision on Kriegers Flak Combined Grid Solution and the RCCS Methodology. Therefore they agreed to adjust the Recital 15 of the RCCS methodology by replacing the sentence “This Decision has no impact on this RCCS methodology” by the sentence “This RCCS Methodology is in line with the
Commission Decision”.
In addition to that the NRAs agreed to add a short description of the Commission Decision on Kriegers Flak Combined Grid Solution.
The NRAs also agreed on some minor wording and clarification issues.
Through closely cooperation and coordination with each other and after consultation of ENTSO- E and the TSOs and RSCs of capacity calculation region Hansa, the NRAs reached an agreement on 10 March to approve the revised proposal.
The NRAs have consulted the revised RCCS methodology with the TSOs and RSCs of CCR Hansa as well as with ENTSO-E. The NRAs have consulted the revised RCCS methodology from 18 February 2021 – 25 February 2021.
The NRAs have not received consultation answers from ENTSOE nor from the RSCs.
The NRAs have have received the following consultation answer from the CCR Hansa TSOs:
The TSOs consider that the following changes introduced in the RCCS proposal are acceptable:
Modifications to reflect the Commission Decision (EU) 2020/2123 of 11 November 2020 on the derogation for KF CGS following Article 64 of Regulation (EU) 2019/943;
Modifications to reflect the amended Regulation (EU) 2019/943 on the internal market for electricity Recast) as part of the Clean Energy for all Europeans package (CEP);
Introduction of paragraph 4 in Article 2 for TSOs to notify the NRAs in cases of consideration of costs other than those referred to in Article 2(2)(a)(ii) to (v)
For the sake of consistency in the used terms, TSOs suggest using the term Krieger’s Flak Combined Grid Solution (abbreviated as KF CGS) throughout the document. This term is consistent with the
Commission Decision (EU) 2020/2123 and with other Hansa CCR proposals. This would in practice mean changing the following parts in the RCCS submitted for consultation:
Last sentence of recital (15) in the “Whereas” section
Article 3(1)(c)
Interconnector column in the table of the Annex 1
Hansa TSOs attached to this email a document where the above suggestion is reflected in track changes.
The TSOs do not wish to propose any further modifications to the RCCS at this stage.
The TSOs remain open to continue exchanging with the NRAs on this and other topics relevant to Hansa CCR.
Following this consultation answer, the Hansa NRAs streamlined the use of the term Kriegers Flak Combined Grid solution throughout the document.
The German NRA BNetzA has published the revised RCCS methodology on its website for consultation from 28 February to 5 March 2021 and has not received any consultation answers.
IV. Conclusion
The NRAs of the capacity calculation region Hansa have on 10 March 2021 reached an
agreement on the revision and approval of the amended proposal for the methodology for RCCS in the capacity calculation region Hansa in accordance with Article 74 of the CACM Regulation.
