Draft methodology on the Use of Congestion Income

Closed 1 May 2020

Opened 20 Mar 2020

Overview

Congestion income represents the revenue transmission system operators (hereafter referred to as “TSOs”) collect when allocating cross-zonal capacity.

Within the Regulation (EU) 2019/943 of 5 June 2019 on the internal market for electricity, Article 19 establishes that revenues resulting from the allocation of cross-zonal capacity shall be used in priority for guaranteeing the actual availability of the allocated capacity, or maintaining or increasing cross-zonal capacities (Article 19(2)). Congestion revenues may be used for tariff calculation where priority objectives according to Article 19(2) have been adequately fulfilled. The residual revenues shall be placed on a separate internal account for future use for the above purposes (Article 19(3)).

Further in the Regulation (EU) 2019/943, Article 19 paragraph 4 refers to a methodology on the use of revenues for the purposes referred to in Article 19(2) and the conditions under which those revenues may be placed on a separate internal account line for future use for those purposes, and for how long those revenues may be placed on such an account line. This methodology shall be proposed by the TSOs after consulting national regulatory authorities (hereafter referred to as "NRA") and relevant stakeholders. The TSOs shall submit the proposed methodology to ACER by 5 July 2020 and ACER shall decide on the proposed methodology within six months of receiving it.

A webinar will take place on 15 April 2020 where TSOs will present their proposal and  discuss initial stakeholders' feedback. The registration and further details about the workshop can be found at this link. Should the conditions prevent a physical workshop, the discussion will take place through a webinar.
 

Why We Are Consulting

TSOs consult on the draft methodology on the use of congestion income to get inputs from stakeholders and to fulfil the requirements of Regulation 2019/943 on the internal market of electricity.

This consultation will last until 1st May 2020.

Events

  • Stakeholder webinar on the TSOs' proposal for the methodology on the use of congestion income

    From 15 Apr 2020 at 10:00 to 15 Apr 2020 at 13:00

    At the webinar, TSOs will present the proposed methodology which aims at setting guidance on the use of congestion income, explain the rationale for such a proposal, and outline the next steps.
    Stakeholders will have the opportunity to exchange views and discuss key questions with the drafting team.
    The link to register can be found above in the "overview" part.

Audiences

  • Anyone from any background

Interests

  • Market Network Codes