8
ACER Agency for the Cooperation of Energy Regulators Annex II Evaluation of responses to the consultation on the Congestion income distribution methodology with all regulatory authorities and T$Os 1 Introduction Pursuant to Article 9(6)(m) and 73(1) of the CACM Regulation, all TSOs submitted the proposal for Congestion income distribution methodology (CJDM) to their respective regulatory authorities for approval. The proposal was received by the last of the concerned regulatory authorities on 1 8 August 2016. On 17 February 2017, all regulatory authorities summited to all TSOs a request for amendment to the proposal. Subsequently, all TSOs submitted to all regulatory authorities the amended proposal (“Proposal”), which was received by the last of the concerned regulatory authorities on 27 April 2017. On 14 June 2017, all regulatory authorities informed the Agency that they have agreed to request the Agency to adopt a decision on the Proposal, pursuant to Article 9(12) of the CACM Regulation, and indicated that the regulatory authorities were able to agree on the key elements of the Proposal to be addressed by the Agency’ s decision. From July to September 2017, the Agency organised several web-conferences with all TSOs to discuss the issues raised by all regulatory authorities and subsequently by the Agency. This period of informal consultation continued with the formal consultation involving all TSOs and regulatory authorities lasting from 6 October until 20 October 2017. In the consultation document, the Agency proposed amendments to the Proposal. This annex contains the summary and the evaluation ofthe responses received from TSOs and regulatory authorities. 2 Responses The Agency received the following nine responses to the consultation: 1. AEEGSI 2. CRE 3. CREG 4. E-CONTROL 5. El 6. ENTSO-E on behalf of all TSOs 7. ILR 8. SEPS 9. URE The table below is organised according to the proposed amendments in the consultation and provides the respective views from the respondents, as well as the response from the Agency how their comments were taken into account. Agency for the Cooperation of Energy Regulators Trg Republike 3 Ljubljana - Slovenia

Pursuant to Article 9(6)(m) and 73(1) of the CACM Regulation, all … · 2017-12-18 · consultation continued with the formal consultation involving all TSOs and regulatory authorities

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Page 1: Pursuant to Article 9(6)(m) and 73(1) of the CACM Regulation, all … · 2017-12-18 · consultation continued with the formal consultation involving all TSOs and regulatory authorities

ACERAgency for the Cooperation

— of Energy Regulators

Annex IIEvaluation of responses to the

consultation on the Congestion income distribution methodologywith all regulatory authorities and T$Os

1 Introduction

Pursuant to Article 9(6)(m) and 73(1) of the CACM Regulation, all TSOs submitted the proposal forCongestion income distribution methodology (CJDM) to their respective regulatory authorities forapproval. The proposal was received by the last of the concerned regulatory authorities on 1 8 August2016. On 17 February 2017, all regulatory authorities summited to all TSOs a request for amendmentto the proposal. Subsequently, all TSOs submitted to all regulatory authorities the amended proposal(“Proposal”), which was received by the last of the concerned regulatory authorities on 27 April 2017.On 14 June 2017, all regulatory authorities informed the Agency that they have agreed to request theAgency to adopt a decision on the Proposal, pursuant to Article 9(12) of the CACM Regulation, andindicated that the regulatory authorities were able to agree on the key elements of the Proposal to beaddressed by the Agency’ s decision.From July to September 2017, the Agency organised several web-conferences with all TSOs to discussthe issues raised by all regulatory authorities and subsequently by the Agency. This period of informalconsultation continued with the formal consultation involving all TSOs and regulatory authorities lastingfrom 6 October until 20 October 2017. In the consultation document, the Agency proposed amendmentsto the Proposal.This annex contains the summary and the evaluation ofthe responses received from TSOs and regulatoryauthorities.

2 Responses

The Agency received the following nine responses to the consultation:1. AEEGSI2. CRE

3. CREG4. E-CONTROL5. El6. ENTSO-E on behalf of all TSOs7. ILR8. SEPS9. URE

The table below is organised according to the proposed amendments in the consultation and providesthe respective views from the respondents, as well as the response from the Agency how their commentswere taken into account.

Agency for the Cooperation of Energy RegulatorsTrg Republike 3

Ljubljana - Slovenia

Page 2: Pursuant to Article 9(6)(m) and 73(1) of the CACM Regulation, all … · 2017-12-18 · consultation continued with the formal consultation involving all TSOs and regulatory authorities

AC

ER

Age

ncy

for

the

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pera

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crgy

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utat

ors

Res

pond

ent’

svi

ews

AC

ER

view

s

Gen

eral

.1 .

Dis

agre

e.In

the

Age

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svi

ew,

the

CID

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ould

appl

yto

1 .E

lco

nsid

ers

that

the

scop

eof

CII

JMsh

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erbe

twee

nE

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..

.

..

..

.al

lbi

ddin

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nebo

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fine

din

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onof

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ber

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orde

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mpl

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hth

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nter

conn

ecto

r”.

..

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diff

eren

tap

proa

chw

ould

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toin

cons

iste

ncie

s.an

d“C

onge

stio

n”es

tabl

ishe

dby

Reg

ulat

ion

EC

714/

2009

.

2.IL

Rco

nsid

ers

that

CU

JMsh

ould

also

incl

ude

the

rule

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rSI

DC

.If

the

CD

Mis

2.P

artl

yag

ree.

The

Age

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clar

ifie

din

the

deci

sion

that

itke

ptas

prop

osed

, the

nIL

Rpr

opos

edto

clar

ify

that

,on

ceth

ecl

arit

yab

outt

hedo

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ndit

reas

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neth

eru

les

for

dist

ribu

tion

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esti

onin

com

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nera

ted

inSI

DC

isob

tain

ed,

TS

Os

shou

ldm

ake

apr

opos

alof

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esti

onin

com

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omSI

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sinc

ecu

rren

tly

nofo

ram

endm

ents

ofC

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inac

cord

ance

wit

hA

rtic

le9(

13)

ofC

AC

Mco

nges

tion

inco

me

isge

nera

ted

byS

DC

and

itis

not

yet

Reg

ulat

ion.

know

nho

wit

wil

lbe

gene

rate

d.N

ever

thel

ess,

the.

Age

ncy

clar

ifie

din

the

reci

tals

ofth

eC

DM

that

once

suff

icie

ntcl

arit

yis

obta

ined

,th

eC

TDM

shou

ldbe

amen

ded

toin

clud

eal

sopr

ovis

ions

for

dist

ribu

tion

ofco

nges

tion

inco

me

from

SID

C.

3.IL

Rpr

opos

eto

exte

ndth

esc

ope

ofC

DJM

toal

lT

SO

san

dno

t jus

tto

cert

ifie

d3.

Agr

ee.

The

Age

ncy

has

rem

oved

the

refe

renc

eto

cert

ifie

dT

SOs.

CR

EO

Ssh

ould

cons

ider

edby

this

met

hodo

logy

,bu

tit

isno

ta

cert

ifie

dT

SOs.

TS

Oas

Art

icle

9of D

irec

tive

EC

/72/

2009

does

not

appl

yto

Lux

embu

rg.

Exte

rnal

flow

sin

FB

CC

Rs

1.E

NT

SO

-Epr

opos

eto

amen

dth

ede

fini

tion

ofex

tern

alfl

owto

refl

ect

the

mai

nP

artl

yag

ree.

The

Age

ncy

agre

esw

ith

the

amen

dmen

tof

purp

ose

toba

lanc

eth

ere

gion

alne

tpo

siti

onof

the

bidd

ing

zone

sin

case

thes

eth

ede

fini

tion

of

exte

rnal

flow

.T

heA

genc

yco

nsid

ers

that

net

posi

tion

sar

eno

teq

ual

toth

esu

mof

AA

Fs.

EN

TS

O-E

also

prop

oses

toad

dth

epr

opos

alfo

ra

defi

niti

onof

exte

rnal

flow

valu

eis

not

ade

fini

tion

onth

eex

tern

alfl

owva

lue.

need

edsi

nce

the

exte

rnal

flow

shou

ldno

tbe

cons

ider

edas

som

ethi

ngde

viat

ing

from

the

gene

ral

prin

cipl

esof

cong

esti

onin

com

edi

stri

buti

on.

Inst

ead,

the

exte

rnal

flow

shou

ldbe

cons

ider

edco

mm

erci

alfl

owfo

rw

hich

the

2/8

Page 3: Pursuant to Article 9(6)(m) and 73(1) of the CACM Regulation, all … · 2017-12-18 · consultation continued with the formal consultation involving all TSOs and regulatory authorities

AC

ER

Ag

ency

for

the

Cooper

atio

nof

tnerg

yR

egula

tors

Res

pond

ent’

svi

ews

AC

ER

view

s

gene

ral

rule

s(i

.e.

com

mer

cial

flow

mul

tipl

ied

wit

hth

em

arke

tsp

read

)st

illap

ply.

2.E

NT

SO

-Ean

dA

EE

GS

Ipr

opos

eto

clar

ify

that

inFB

CC

Rs

the

net

posi

tion

s2.

Agr

ee.

The

Age

ncy

agre

esan

din

trod

uces

the

term

used

for

calc

ulat

ion

ofA

AF

san

dex

tern

alfl

ows

are

not

glob

alne

tpos

itio

nsbu

t“r

egio

nal

net

posi

tion

”to

indi

cate

the

net p

osit

ion

resu

ltin

g

inst

ead

the

net

posi

tion

sre

sult

ing

from

exch

ange

sw

ithi

na

CC

R.

from

exch

ange

sw

ithi

na

CC

R.

3.E

NT

$O-E

prop

ose

toin

trod

uce

afl

exib

ilit

yby

whi

chth

ebi

ddin

gzo

nebo

rder

s3

Dis

agie

e.T

hepr

opos

alis

not

acce

ptab

lebe

caus

e:

havi

ngex

tern

alfl

ows

may

deci

deto

shar

epa

rtoft

he

cong

esti

onin

com

eit

does

not

spec

ify

such

devi

atio

ns(i

.e.

whi

chbi

ddin

g

gene

rate

dby

exte

rnal

flow

sw

ith

othe

rbi

ddin

gzo

nes

inth

eC

CR

.T

hese

bidd

ing

zone

sw

illde

viat

efr

omth

ege

nera

lru

le);

zone

sw

ould

defi

neth

epe

rcen

tage

that

issh

ared

wit

hot

her

bidd

ing

zone

sin

the

itdo

esno

tpr

ovid

ead

equa

teju

stif

icat

ion

for

such

CC

Ran

dw

ith

whi

chbi

ddin

gzo

nes

the

valu

eis

tobe

shar

ed.

devi

atio

ns.

The

fact

that

such

devi

atio

nw

ould

mim

ic

exis

ting

agre

emen

tca

nnot

beco

nsid

ered

asa

suff

icie

ntju

stif

icat

ion.

Just

ific

atio

nw

ould

need

tobe

base

don

mor

esu

bsta

ntia

lgr

ound

s.-

itim

pose

sth

eob

liga

tion

son

bidd

ing

zone

sra

ther

than

onen

titie

s(i

.e.

TSO

s)

4.C

RE

aske

dfo

rco

ncre

teex

ampl

efo

rca

lcul

atio

nof

exte

rnal

flow

sin

orde

rto

be4

Par

tly

agre

e.T

heA

genc

yw

ould

also

wel

com

eco

ncre

te

able

tobe

tter

com

preh

end

the

prop

osal

atha

nd.

exam

ples

from

TSO

s,ho

wev

er,

itco

nsid

ers

that

such

exam

ples

are

not

apr

ereq

uisi

tefo

rm

akin

ga

deci

sion

onth

isis

sue.

5.C

RE

Gra

ised

obje

ctio

nsto

the

prop

osal

that

cong

esti

onin

com

ege

nera

ted

byD

isag

ree.

The

Age

ncy

has

eval

uate

dth

ese

com

men

tsan

d

exte

rnal

flow

sar

eto

beal

loca

ted

toth

eT

SO

sof

bidd

ing

zone

sha

ving

exte

rnal

conc

lude

dth

atth

eyar

eno

tsu

ffic

ient

lyst

rong

toju

stif

y

flow

s.T

heir

reas

ons

for

obje

ctio

nsw

ere

the

follo

win

g:de

fmin

gth

eC

WE

rule

asa

defa

ult

rule

oras

ade

viat

ion

from

the

gene

ral

rule

.In

part

icul

ar:

3/8

Page 4: Pursuant to Article 9(6)(m) and 73(1) of the CACM Regulation, all … · 2017-12-18 · consultation continued with the formal consultation involving all TSOs and regulatory authorities

AC

ER

Age

ncy

for

the

Coo

pera

tion

oFE

nerg

yR

egul

ator

a

(a)

exis

ting

CW

EC

II)

rule

sag

reed

byal

lU

WE

part

ies

spec

ify

that

50%

ofex

tern

alfl

ows

are

dist

ribu

ted

pro

port

ional

lyam

ong

all

bid

din

gzo

nebo

rder

sof

the

CW

Ere

gion

;

(b)

The

CW

EC

Dru

les

are

mor

efa

ir,

sinc

eth

eco

nges

tion

inco

me

isge

nera

ted

byex

tern

alfl

ows,

whi

chto

ace

rtai

nex

tent

use

the

inte

rcon

nect

ors

onot

her,

inte

rnal

bidd

ing

zone

bord

ers

asw

ell.

Exc

hang

esbe

twee

nF

Ran

dD

Epa

rtly

flow

thro

ugh

CH

,bu

tal

soth

roug

hB

Ean

dN

L;

(C)

Pro

pose

d50

/50

shar

ing

key

for

cong

esti

onin

com

ege

nera

ted

byex

tern

alfl

ows

resu

lts,

for

thos

eT

SOs

onth

eex

tern

albo

rder

s,in

the

sam

eco

nges

tion

inco

me

asw

ould

beth

eca

seif

CH

wou

ldbe

part

ofth

eC

CR

.A

sth

eC

Hpa

rtof

cong

esti

onin

com

eca

nnot

beat

trib

uted

toC

Hit

isfa

irto

shar

eit

amon

gal

lT

SOs;

and

(U)

The

rule

prop

osed

byA

CE

Rw

ould

redu

ceth

eco

nges

tion

inco

me

for

Bel

gian

TS

Oin

over

all

for

17.9

%in

2016

.

a)E

xist

ing

sub-

regi

onal

arra

ngem

ents

are

not

nece

ssar

ya

soli

dju

stif

icat

ion

for

the

appl

icat

ion

ofan

EU

-wid

em

etho

dolo

gy.

CW

EFB

need

sto

bere

plac

edw

ith

new

arra

ngem

ents

com

plia

ntw

ith

the

CA

CM

Reg

ulat

ion.

b)In

the

Age

ncy’

sun

ders

tand

ing,

exte

rnal

flow

sdo

not

use

BE

and

NL

inte

rcon

nect

ors.

InFB

appr

oach

,th

em

arke

tco

upli

ngal

gori

thm

calc

ulat

esne

tpo

siti

ons

of b

iddi

ngzo

nes,

but

not

exch

ange

sbe

twee

nbi

ddin

gzo

nes

oron

bidd

ing

zone

bord

ers.

The

sear

eid

enti

fied

only

whe

nco

nver

ting

the

net

posi

tion

sin

toco

mm

erci

alfl

ows

onth

ebo

rder

s(i

.e.

AA

Fs

and

exte

rnal

flow

s).

Thi

sm

eans

that

AA

Fon

BE

and

NL

bord

ers

alre

ady

acco

unts

for

the

flow

sfr

omal

lex

chan

ges

betw

een

all

bidd

ing

zone

sin

aC

CR

(inc

ludi

ngth

etr

ade

betw

een

DE

and

FR

bidd

ing

zone

s).

c)U

nder

the

assu

mpt

ion

that

CH

wou

ldbe

part

ofSD

AC

,th

efl

ows

onF

R-C

Han

dD

E-C

Hbo

rder

sw

ould

beco

nsid

ered

asco

mm

erci

alfl

ows

betw

een

FR

and

CH

and

betw

een

DE

and

FR.

How

ever

,in

case

CH

isno

tpa

rtic

ipat

ing

inSD

AC

,th

ere

are

noco

mm

erci

alfl

ows

betw

een

FR

and

CH

and

betw

een

DE

-and

CH

.In

stea

d,ex

tern

alfl

ows

repr

esen

tco

mm

erci

alfl

ows

betw

een

FR

and

DE

,si

nce

the

unde

rlyi

ngtr

ade

ison

lybe

twee

nC

WE

bidd

ing

zone

s.d)

The

Age

ncy

took

into

acco

unt

this

conc

ern.

Res

pond

ent’

svi

ews

AC

ER

view

s

4/8

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AC

ER

—A

genc

yfo

rth

eC

oope

rati

on()

Ene

rgy

Reg

ulat

ors

Res

pond

ent’

svi

ews

AC

ER

view

s

6.IL

Rpr

opos

edso

me

amen

dmen

tsto

bett

ercl

arif

yth

ede

fini

tion

san

dth

e6.

Agi

ee.

The

Age

ncy

took

thos

esu

gges

tion

sin

toac

coun

t.

proc

edur

eto

calc

ulat

eex

tern

alfl

ows.

7.SE

PSpr

ovid

edso

me

clar

ific

atio

nson

the

proc

edur

eto

calc

ulat

eex

tern

alfl

ows.

7P

artl

yag

ree.

The

Age

ncy

cons

ider

sth

eC

AC

Mde

fini

tion

The

yre

late

toth

ecl

arit

yof

calc

ulat

ing

the

PT

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(i.e

.P

TD

fsh

ould

spec

ify

of

aP

TD

Fsu

ffic

ient

lycl

ear

toen

able

itsun

ambi

guou

s

whe

ther

itis

calc

ulat

edas

zone

-to-

zone

,zo

ne-t

o-hu

bor

zone

-to-

refe

renc

ezo

ne)

appl

icat

ion

(the

CA

CM

defi

niti

onof

aP

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fre

quir

esa

and

the

clar

ity

inca

lcul

atin

gth

epr

ice

ofth

evi

rtua

lhu

b.re

fere

nce

node

orzo

nefo

rth

eca

lcul

atio

nof P

TD

F).

Wit

hre

gard

toth

eca

lcul

atio

noft

hepr

ice

ofvi

rtua

lhu

b,th

eA

genc

ym

ade

amen

dmen

ts,

whi

chcl

arif

yth

atth

epr

ice

of

virt

ual h

ubis

the

pric

eth

atm

inim

ises

the

valu

eof t

hefo

rmul

asp

ecif

ied

inA

rtic

le3(

4)oft

he

CD

M.

Rem

uner

atio

nof

LT

TR

s

1.E

NT

SO

-Epr

opos

edan

addi

tion

alA

rtic

leto

incl

ude

the

shar

ing

ofco

sts

of1.

Dis

agre

e.Sh

arin

goft

heco

sts

ofre

mun

erat

ion

of

LT

TR

sis

rem

uner

atio

nof

LT

TR

s.A

ccor

ding

toE

NT

SO

-E,

this

isne

eded

toen

sure

that

outs

ide

the

scop

eoft

he

CID

Man

dsh

ould

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vere

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the

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5/8

Page 6: Pursuant to Article 9(6)(m) and 73(1) of the CACM Regulation, all … · 2017-12-18 · consultation continued with the formal consultation involving all TSOs and regulatory authorities

AC

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WA

gnc>

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8

Page 7: Pursuant to Article 9(6)(m) and 73(1) of the CACM Regulation, all … · 2017-12-18 · consultation continued with the formal consultation involving all TSOs and regulatory authorities

AC

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7/8

Page 8: Pursuant to Article 9(6)(m) and 73(1) of the CACM Regulation, all … · 2017-12-18 · consultation continued with the formal consultation involving all TSOs and regulatory authorities

AC

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