Today, ACER releases its report on the Lithuanian gas transmission tariffs directed at the Valstybinė Energetikos Reguliavimo Taryba (VERT), the national regulatory authority (NRA) of Lithuania.

The report assesses the compliance of the proposed reference price methodology (RPM) with the requirements of the Network Code on Harmonised Transmission Tariff structures. 

What is the proposed methodology about?

The Lithuanian regulator proposes to:

• Apply a postage stamp reference price methodology with flexible entry-exit splits, complemented by a 100% discount at entry points for domestic biomethane producers.
• Align entry tariffs with those of the neighbouring FinEstLat (Finland, Estonia and Latvia) zone.
• Simplify the existing tariff structure by abandoning the previously applied system based on multiple asset cost splits and differentiated tariffs.
• Use a flow-based charge (commodity-based tariff) with a fixed tariff level for the entire regulatory period.
• Offer a conditional product with limited allocability (i.e. the product can only be used to ship gas to pre-defined system points) at entry and exit points with non-EU countries.

What are the key findings? 

After analysing the consultation document, ACER concludes that:

• The proposed methodology meets the requirements on transparency, non-discrimination, and volume risk.
• Compliance with the requirements on cost-reflectivity, avoidance of cross-subsidisation, and prevention of cross-border trade distortions cannot be fully assessed, due to several design elements of the methodology.
• While the criteria for setting the flow-based charge are met, further clarification is needed on how the charge will be adjusted and reconciled. 
• Simplifying the tariff structure has made the methodology more understandable for system users.

What does ACER recommend? 

ACER recommends that the national regulator, when adopting its final decision:

• Provides a clear framework for the flow-based charge, preferably by recalculating its level annually.
• Ensures full compliance of non-EU entry and exit points with the network code. 
• Assesses regional networks and allocates their costs in a compliant way, in line with EU rules and ACER’s guidance.

See all ACER reports on national tariff consultation documents. 

Today, ACER releases its report on the German gas transmission tariffs directed at the Bundesnetzagentur für Elektrizität, Gas, Telekommunikation, Post und Eisenbahnen (BNetzA), the national regulatory authority (NRA) of Germany.

The report assesses the compliance of the proposed reference price methodology (RPM) with the requirements of the Network Code on Harmonised Transmission Tariff structures (NC TAR). 

What is the proposed RPM about?

The German NRA proposes to:

• Apply a postage stamp RPM with uniform entry and exit tariffs.
• Use conditional products with discounted tariffs.
• Use non-transmission services, including metering at exit points (for both end-users and distribution networks) and alternative nomination procedures for gas deliveries.

What are the key findings? 

After analysing the consultation document, ACER concludes that: 

• The RPM complies with the requirements of the network code on transparency, non-discrimination and volume risk.
• Due to insufficient information on regional networks, ACER could not assess the compliance of the proposed tariffs with the principles of cost-reflectivity, avoidance of cross-subsidisation and prevention of cross-border trade distortions. 
• While the criteria for setting metering charges are met, ACER could not assess whether the proposed tariff methodologies for alternative nomination procedures comply with NC TAR principles.

What does ACER recommend? 

ACER recommends that the NRA, when adopting its final decision:

• Assess regional networks and allocate their costs in a compliant way, in line with EU rules and ACER’s guidance.
• Provide more clarity on how discounted tariffs for conditional products are calculated.

See all ACER reports on national tariff consultation documents. 

ACER kicks off its 2025 Monitoring Report series with key insights into the EU energy markets, highlighting major developments in 2024, and examining the interplay between gas and electricity markets in the energy transition.

What are the key findings?

The report highlights progress towards Europe’s transition to clean energy, persistent challenges (such as high and volatile energy prices for European consumers and businesses), and how to address them. It sets out ACER’s recommendations on how Europe can unlock a clean, secure and competitive energy future.

• 2024 recorded the lowest energy prices since 2021, but with noticeable regional differences. Gas prices averaged 34 €/MWh and electricity averaged 81 €/MWh. The surge in negative and very low prices in 2023 intensified in 2024.
• Energy market prices remained volatile (but less extreme than during the crisis), driven by gas supply risks and renewables’ variability. Frequent swings in electricity prices (within a day) persist – on 70% of days, electricity price variations within the day reached 50€ or higher. Electricity price swings reveal a need for more short-term flexibility.
• Renewables grew significantly, accounting for 35% of power generation. Solar power confirmed its leading role in the energy transition whilst nuclear and hydro came back.
• Europe’s clean energy transition faces persistent challenges. Gas supply risks and unpredictable weather later in the year kept market prices volatile. In December, a ‘dunkelflaute’ episode in Germany sent electricity prices to nearly 1,000 €/MWh (far above the 81 €/MWh annual average). 
• Gas as a flexibility provider. Fossil fuels, especially gas and coal, remain essential for meeting peak electricity demand.

ACER’s recommendations to address these challenges:

For decarbonisation and global competitiveness, Europe must place renewed effort on further expanding EU energy market integration, enhancing energy efficiency, and driving power grid innovation:

• Target new transition cost drivers: Network costs are at risk of doubling by 2050. Enhancing grid capacity (rather than new build) is part of the solution. Better network tariffs and 'efficiency first' incentives to prevent stranded assets play an important role. Ensure capacity, flexibility, and renewables remain affordable while securing long-term supply.
• Harness energy efficiency and flexibility: Use demand response, electric vehicles (EVs), and batteries to balance supply and demand, cut price swings, and strengthen grid resilience, especially at peak times.
• Expand energy market integration: Support cross-border renewable use for flexibility and security. Strengthen interconnections to cut fossil fuel reliance and build trust in Europe’s energy markets.

Looking ahead 

In its 2025 Monitoring Report series, ACER will continue to pave the way for a clean, secure and competitive energy future by shedding light on:

• strengthened cross-border cooperation;
• energy transition monitoring; and
• efficient grid investment.

Upcoming reports:

• ACER's Monitoring Report on removing barriers to demand response (to be published here on 8 April).
• ACER’s report on EU electricity tariff practices (coming on 26 March).

Today, ACER releases its report on the Hungarian gas transmission tariffs directed at Magyar Energetikai és Közmű-szabályozási Hivatal (MEKH), the national regulatory authority (NRA) of Hungary.

The report assesses whether the proposed reference price methodology (RPM) complies with the requirements of the Network Code on Harmonised Transmission Tariff structures (NC TAR). 

What is the proposed RPM about?

The NRA proposes to:

• Apply a postage stamp RPM complemented by a 90% discount at entry points from storage and 100% discounts at exit points from storage. It also suggests applying a 50/50 entry-exit split but is open for adjustments within a 40/60 to 60/40 range subject to stakeholder feedback.
• Adopt an in-kind flow-based charge (commodity-based tariff). However, taking into consideration inputs received from stakeholders, MEKH already informed ACER about its intent to switch back to a monetary flow-based charge (already in place since 2021).
• Introduce two non-transmission services, respectively for gas odorisation and for connecting users to the network. 

What are the key findings? 

After analysing the consultation document, ACER concludes that: 

• The RPM largely complies with requirements set in Article 7 of the NC TAR. 
• ACER could not assess the compliance of the proposed flow-based charge, as the relevant NRA decision is only available in Hungarian. However, given MEKH’s intent to switch to a monetary flow-based charge, ACER referred to its 2021 analysis, assessing the compliance of the tariffs proposed at that time.
• The proposed non-transmission services also comply with EU rules. 

What does ACER recommend? 

ACER recommends that the NRA, when adopting its final decision:

• Ensure the compliance of the commodity-based tariffs with the NC TAR, particularly considering that the monetary flow-based charge will be applied instead of the in-kind one (e.g. stakeholders were consulted upon the latter, but not the former).
• Reconcile the proposed non-transmission services as required by Article 17(3) of the NC TAR.

See all ACER reports on national tariff consultation documents. 

Today, ACER releases its report on the Swedish gas transmission tariff directed at the Swedish National Regulatory Authority (NRA), Energimarknadsinspektionen (Ei), and Transmission System Operator, Swedegas.

The report assesses whether the proposed Reference Price Methodology (RPM) complies with the requirements of the Network Code on Harmonised Transmission Tariff structures (NC TAR). 

What are the key findings? 

After analysing the consultation document, ACER concludes that:

• Most of the required information is provided, however, the forecasted contracted capacity, tariff comparison between periods, and detailed information on some non-transmission services are missing. 

• The input parameters of the proposed RPM do not fulfil the transparency requirements of the NC TAR. As a result, ACER concludes that the proposed RPM is not fully compliant with the transparency principle.

• While the choice of the postage stamp methodology is well justified, limitations identified in the allowed revenue estimation and revenue reconciliation raise concerns about the cost reflectivity of the proposed tariff. Consequently, ACER cannot conclude that the proposed RPM complies with the cost-reflectivity principle. 

• The proposed RPM achieves a reasonable level of cross-subsidisation compared to the alternative capacity-weighted distance methodology while complying with the principles of non-discrimination, volume risk, and the prevention of distortions in cross-border trade. 

• The information provided on the three non-transmission services (fees for extra area consumption, capacity allocation for summer and winter periods, and capacity allocation for daily capacity products) is insufficient to assess the compliance with the NC TAR principles.

What does ACER recommend? 

ACER recommends that the NRA, when adopting its decision:

• Includes the missing elements and clarifies inconsistencies in the calculation of input parameters for the tariff-setting process, ensuring stakeholders fully understand the methodology. 

• Specifies the start of the regulatory period for the proposed RPM and the applicability of the consulted tariff.

• Provides the missing information on the three additional non-transmission services. 

ACER welcomes the steps taken by the NRA to realign the allowed revenue with Article 17 of Renewable Gas, Natural Gas and Hydrogen Regulation, ensuring it reflects the TSO’s actual costs, as long as they correspond to those of an efficient and structurally comparable network operator. 

Additionally, ACER appreciates that the TSO and NRA followed its recommendation in the 2024 tariff report and conducted another consultation on the applied methodology. 

See all ACER reports on the national tariff consultation documents.

Today, ACER releases its report on the Romanian gas transmission tariffs directed at the Autoritatea Naţională de Reglementare în domeniul Energiei (ANRE), the National Regulatory Authority (NRA) of Romania.

The report assesses whether the proposed reference price methodology (RPM) complies with the requirements of the Network Code on Harmonised Transmission Tariff structures (NC TAR). 

What are the key findings?

After analysing the NRA’s consultation document, ACER finds that, while most of the required information is available, the absence of important elements prevents a complete assessment of the proposed methodology’s compliance with the Network Code requirements. In particular:

• ANRE did not provide sufficient justification for choosing the proposed postage stamp methodology, making it difficult for stakeholders to evaluate its suitability.
• While the postage stamp methodology may be appropriate, ACER cannot determine its compliance with the NC TAR principles (e.g. cost-reflectivity, preventing cross-subsidisation, and avoiding cross-border trade distortions) without further clarification.
• While the transparency and volume risk criteria of the NC TAR are not directly addressed in the consultation document, ACER could still conclude that the proposed methodology meets these requirements. Additionally, ACER did not identify any discriminatory elements in the proposed RPM.
• Although the criteria for setting non-transmission charges are met, the non-transmission revenue is not included in the allowed revenue, contrary to Network Code requirements.
• Finally, the criteria for setting commodity charges align with NC TAR requirements.

What does ACER recommend?

ACER recommends that the NRA, when adopting its decision, further justify the choice of the proposed RPM by including the following elements:

• Further considerations on the system’s technical characteristics and flow dynamics, focusing on distance as a potential cost driver.
• The conclusions drawn from the comparison of the proposed RPM with the Capacity Weighted Distance (CWD) methodology.
• A detailed assessment of the proposed RPM against all requirements outlined in Article 7 of the NC TAR.

ACER also invites ANRE to clarify how costs associated with the inclusion of the “transit” pipeline (part of the Trans-Balkan pipeline infrastructure) in the national transmission system have been taken into account.

Access all ACER reports on national tariff consultation documents.

The EU’s Hydrogen and decarbonised gas market package (2024) aims to support the development of a competitive hydrogen market and the integration of renewable gases into Europe’s energy system. To achieve this, the package extends the role of ACER to include new hydrogen-related tasks.

One of these tasks, set out in the Regulation on hydrogen and decarbonised gas market, requires ACER to issue a recommendation on the methodologies for setting the inter-temporal cost allocation by 5 August 2025 and update it at least every two years. 

To inform the drafting of this recommendation, ACER will seek stakeholder input through a public consultation from 10 to 31 March 2025.

What is inter-temporal cost allocation?

Developing a European hydrogen market will require significant infrastructure investment to transport hydrogen from supply sites to end users. However, funding this infrastructure through traditional regulated tariffs (fees paid by network users) could result in extremely high fees for early users, making hydrogen less affordable and potentially discouraging further demand.

To address this issue, the Regulation on hydrogen and decarbonised gas market grants Member States the authority to allow hydrogen network operators to recover infrastructure costs over time through inter-temporal cost allocation mechanisms. These aim to ensure a fair distribution of costs between early and future hydrogen consumers, ensuring that the former are not disproportionately burdened.

ACER’s recommendation will provide guidance to Transmission System Operators (TSOs), Distribution System Operators (DSOs), hydrogen network operators, and National Regulatory Authorities (NRAs) on how to develop and implement these mechanisms effectively.

Today, 31 January, marks the final day of the EU’s gas Market Correction Mechanism (MCM).

Established by the MCM Regulation in December 2022, in the midst of the energy crisis, this mechanism was designed to protect EU citizens and the economy against excessively high energy prices.

It tasked ACER with the calculation and publication of a daily MCM reference price. It entered into force on 1 February 2023 for an initial year and was later extended to 31 January 2025.

What is the MCM?

The MCM was a safeguard to cap gas prices in the EU. It would activate only if:

1. Gas prices at EU hubs exceeded €180/MWh for three consecutive working days.
2. These prices were at least €35/MWh higher than the MCM reference price during the same period.

Upon activation, a bidding limit would cap gas trading prices to protect the market from further escalation.

The MCM was never activated, as market conditions never met these thresholds.

The MCM’s effects on energy and financial markets have been closely monitored by ACER and by ESMA (European Securities and Markets Authority) respectively - no significant impacts on the market have been directly attributed to it. 

Read more about the MCM.

ACER has updated its data dashboard, which tracks monthly changes in household energy prices across EU Member States and Norway from January 2019 to December 2024.

The dashboard provides valuable insights for policymakers, consumer protection groups, and EU citizens by highlighting trends in end-user electricity and gas prices, supporting informed decisions on energy affordability and system costs.

What are the key findings?

Electricity prices: In 2024, household electricity prices decreased by 5% compared to 2023. This was mainly due to a 17% fall in the energy component of prices. However, this decline was partially offset by higher network costs and the phasing out of certain subsidies. In Q4, prices and their composition remained steady, showing no significant changes compared to the previous quarter.

Gas prices: Similarly, household gas prices fell by an average of 7% in 2024, driven by the 20% drop in the energy component. Removal of subsidies contributed to a rise in the tax component, partially offsetting the decrease. In the last quarter, the average end-user gas prices slightly increased.

What lies ahead?

The drop in energy costs reflects the impact of Europe's growing use of renewable energy. However, as renewable energy generation expands, there will be a need for substantial investment in energy infrastructure, which could lead to higher network costs in the future.

The European Commission’s upcoming Action Plan on Energy Affordability will be key in addressing these challenges. The current trends highlight the importance of looking at the overall costs of the energy system (including network and infrastructure expenses), rather than focusing solely on commodity costs.

ACER will continue updating the dashboard quarterly to monitor the developments in energy affordability for European consumers.

Today, ACER issues its Recommendation proposing potential improvements to the gas Capacity Allocation Mechanisms Network Code (CAM NC).

The CAM NC harmonises how Transmission System Operators (TSOs) offer and allocate available gas transmission pipeline capacity to network users. The network code, last amended in 2017, needs to be updated to reflect Europe’s decarbonisation goals and the evolving gas market.

The revision process

In 2023, ACER initiated the revision process, as invited by the European Commission. The revision process was informed by new regulatory elements from the hydrogen and gas decarbonisation package, ACER’s initial analysis of the network code's achievements and areas for improvement, and dialogue with stakeholders.

Following the analysis of inputs received during the last consultation (September-October 2024), ACER concluded the revision process by issuing its Recommendation to the European Commission on 20 December 2024.

What are the main recommendations?

• Utilise the current gas system efficiently and strengthen its monitoring by improving transparency on how capacity is maximised, and enhance coordination and consultation among relevant regulatory authorities, TSOs and network users.  
• Enhance transmission capacity that is made available by increasing auction opportunities for existing capacity products and introducing a capacity offer between monthly and daily auctions, thereby contributing to security of supply.
• Allow a quick modification of non-essential auction details to ensure auctions can reflect the evolving market conditions, while maintaining harmonised rules for capacity allocation across all interconnection points.

What are the next steps?

The European Commission can amend the network code following the comitology process. ACER’s Recommendation offers a starting point for that process.