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NWE day-ahead price coupling – cost issues

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damara
7 diapositives · 197 Views · Sep 16, 2014

The NWE IG meeting at Amsterdam Schiphol discussed critical cost issues related to NWE/PCR market coupling. Regulatory Authorities (NRAs) are developing a "Letter of Comfort" (LoC) to ensure transparency, reliability, and cost-effectiveness in cost recovery and sharing among Transmission System Operators (TSOs) and Power Exchanges (PXs). A detailed budget on design, implementation, and operational costs is paramount, with common and local costs considered for efficient recovery under national tariff rules. NRAs support the project and are committed to necessary regulatory measures to avoid delays.

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  1. NWE day-ahead price coupling – cost issues NWE IG meeting – Amsterdam Schiphol TITRE

  2. NRAs are currently elaborating a “Letter of Comfort” (LoC) in order to provide TSOs and PXs with some comfort regarding cost recovery and cost sharing. Pre-condition: Solution needs to be transparent, reliable, easily extendible and cost-effective. In any case, only auditable, efficient and necessary costs will be taken into account. Letter of Comfort (LoC) – Cost issues

  3. TSOs and PXs are asked to provide ACER and NRAs as soon as possible with a detailed budget regarding the design, implementation and operational costs of the NWE/PCR market coupling project. This should include common and local cost. Relevant and efficient incurred costs will be the basis for cost recovery in accordance with national tariff rules. LoC – Cost recovery

  4. Potential approaches TSOs bear all costs (“CWE model”) PXs bear all costs (“Nordic market model”) Cost sharing between PXs and TSOs NWE NRAs position on design and implementation costs TSOs should bear part of the (local and common) costs. Exact share of costs to be borne by TSOs and covered by tariffs shall be determined at national level by the respective NRAs. After providing the detailed budget TSOs and PXs are invited to start discussion on this issue with respective NRAs. LoC – Cost sharing between TSOs / PXs

  5. NWE TSOs and PXs were asked to provide a proposal (cross-regional roadmap; NWE IG meeting Oct. 2011). NRAs and ACER will address this topic in the Letter of Comfort. LoC – Cost sharing NWE/non-NWE

  6. Conditions for cost recovery: Solution needs to be transparent, reliable, easily extendible and cost-effective. only auditable, efficient and necessary costs will be taken into account. NWE NRAs support PCR and are committed to take all necessary regulatory steps to reach goal of implementing NWE/PCR market coupling. In case a considerable delay gets very likely at an early stage of the project, ACER and NRAs may consider alternative solutions. LoC – Regulatory issues

  7. Thank you for your attention! www.acer.europa.eu