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Document 32010R0838

Electricity in the EU — Inter-Transmission System Operator Compensation (ITC)

Date of last review:
24/05/2019
Initial creation date:
28/06/2019
Summary code:
  • 18.09.03.00 Electricity
EUROVOC descriptor:
Directory code:
Summarised document(s):
Author:
Publications Office of the European Union
Responsible entity(ies):
Directorate-General for Energy

Electricity in the EU — Inter-Transmission System Operator Compensation (ITC)

 

SUMMARY OF:

Regulation (EU) No 838/2010 — guidelines relating to the inter-transmission system operator compensation mechanism and a common regulatory approach to transmission charging

WHAT IS THE AIM OF THIS REGULATION?

It aims to provide a mechanism and guidelines for:

  • compensating electricity transmission system operators (TSOs)* for the cost of hosting cross-border electricity flows on their networks;
  • how this compensation is calculated.

KEY POINTS

TSOs receive compensation for hosting cross-border flows of electricity on their networks, including for corresponding losses through an Inter-Transmission Compensation (ITC) fund established and administered by the European Network of Transmission System Operators for Electricity (ENTSOE), which was set up under Article 5 of Regulation (EC) No 714/2009. The ITC framework is overseen by the Agency for the Co-operation of Energy Regulators (ACER), set up by Regulation (EC) No 713/2009.

Contribution to the fund

TSOs contribute proportionately to the ITC fund based on electricity flows onto and from their national transmission system.

Participation

Regulatory authorities ensure that TSOs participate in the ITC mechanism and that no additional charges for hosting cross-border flows of electricity are included in charges applied by transmission system operators for access to networks.

TSOs from non-EU countries who apply EU law in the field of electricity or have entered into multi-party agreements are entitled to participate in the ITC mechanism.

Use fee

Each participant in the ITC mechanism charges a transmission system ‘use fee’ on electricity imports and exports of electricity between the national transmission system and the transmission system of a non-EU country, unless it is has agreed to apply EU law in the field of electricity, or where there is no multi-party agreement.

The ‘use fee’ for each year is set by ENTSO-E at the estimated contribution per megawatt hour TSOs from a participating country would make to the ITC Fund based on projected cross-border electricity flows for the relevant year.

Charges

The annual average transmission charges paid by producers is calculated as:

  • the annual total transmission tariff charges paid by producers divided by the total measured energy injected annually by producers to the transmission system of an EU country.

These charges exclude:

  • infrastructure charges;
  • charges paid by producers related to ancillary services;
  • specific system loss charges paid by producers.

The allowable annual average transmission charges paid by producers is as follows:

  • Denmark, Sweden and Finland: 0 to 1.2 €/MWh;
  • Ireland, Great Britain and Northern Ireland: 0 to 2.5 €/MWh;
  • Romania: 0 to 2.0 €/MWh;
  • other participating countries: 0 to 0.5 €/MWh.

ENTSO-E monitors how appropriate these allowable charge ranges are, taking account of their impact on transmission capacity financing for EU countries.

FROM WHEN DOES THIS REGULATION APPLY?

It has applied since 3 March 2011.

BACKGROUND

See also:

KEY TERMS

Transmission system operator (TSO): a natural or legal person responsible for operating, ensuring the maintenance of and, if necessary, developing the transmission system in a given area and, where applicable, its interconnections with other systems, and for ensuring the long-term ability of the system to meet reasonable demands for the transmission of electricity.

MAIN DOCUMENT

Commission Regulation (EU) No 838/2010 of 23 September 2010 on laying down guidelines relating to the inter-transmission system operator compensation mechanism and a common regulatory approach to transmission charging (OJ L 250, 24.9.2010, pp. 5-11)

RELATED DOCUMENTS

Regulation (EC) No 713/2009 of the European Parliament and of the Council of 13 July 2009 establishing an Agency for the Cooperation of Energy Regulators (OJ L 211, 14.8.2009, pp. 1-14)

Amendments to Regulation (EC) No 713/2009 have been incorporated in the original text. This consolidated version is for documentary purposes only.

Regulation (EC) No 714/2009 of the European Parliament and of the Council of 13 July 2009 on conditions for access to the network for cross-border exchanges in electricity and repealing Regulation (EC) No 1228/2003 (OJ L 211, 14.8.2009, pp. 15-35)

See consolidated version.

last update 24.05.2019

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