New Electricity Regulation

New Electricity Regulation

Adapting to new emerging market realities

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​​The new Electricity Regulation aims to adapt the existing market rules to new emerging market realities.

The new Regulation provides a set of fundamental principles for well-functioning, integrated electricity markets.

It includes general rules for the electricity market and covers in detail network access and congestion management, resource adequacy, transmission system operators, distribution system operators, as well as network codes and guidelines.​

New Electricity Regulation

The Regional Coordination Centres and the implementation of system operation regions

Electricity transmission pillars, national development plans

The new Electricity Regulation foresees the establishment of Regional Coordination Centres (RCCs), replacing the regional security coordinators established by the System Operation Guideline

Their tasks include: 

  • supporting the consistency assessment of transmission system operators' defence and restoration plans, ensuring an effective application of the Emergency and Restoration Network Code's procedure

  • supporting the coordination and optimisation of regional restoration

  • carrying out post-operation and post disturbances analysis, and

  • reporting and identifying regional electricity crisis scenarios

Ahead of their entering into operation by 1 July 2022, the geographical scope of the RCCs had to be defined through a proposal for system operation regions. 

The proposal had to be submitted to ACER by the European Network of Transmission System Operators for Electricity (ENTSO-E) and specify which transmission system operators, bidding zones, bidding zone borders, capacity calculation regions and outage coordination regions are covered by each of the system operation regions. 

The proposal had to take into account the grid topology, including the level of interconnection and interdependency of the electricity system in terms of flows and the size of the region (covering at least one capacity calculation region).

The activities of RCCs are coordinated across regional boundaries, while the day-to-day coordination within and between the RCCs is managed by cooperation processes among the transmission system operators of the region, as well as by arrangements between the RCCs.

​Action 1: From October to November 2019, ENTSO-E has conducted a public consultation on its proposal for System Operation Regions (SOR). ​

Action 2: On 6 January 2020, ENTSO-E submitted the SOR proposal to ACER. Find out more about the ENTSO-E proposal for System Operation Regions and the Explanatory document accompanying the proposal.

Action 3:  On 6 January 2020, ACER opened a public consultation for all stakeholders on ENTSO-E proposal.

Action 4:  Within three months following the receipt of the proposal, ACER had to approve or amend it. In case of any amendments, ACER should consult ENTSO-E before adopting any changes.

Action 5: ACER published the adopted proposal on its website.​

Action 6: On 15 March 2021, ACER published a public notice on the opening of a procedure for the definition of system operation regions​ (ACER-ELE-2021-010).

Action 7: On 29 June 2021, ACER published its Decision on the definition of system operation regions (Decision No 08/2021).

Action 8: On 19 October 2021, ACER withdrew Decision No 08/2021 and reopened the procedure for the definition of system operation regions.

Action 9: On 8 April 2022, ACER published the adopted decision (ACER Decision No 05/2022) on its website.

New Electricity Regulation

ACER’s monitoring of Regional Coordination Centres

The revised ACER Regulation introduces new tasks for ACER in the regulatory oversight of Regional Coordination Centres (RCCs).

Specifically, ACER is responsible for monitoring and analysing the performance of RCCs in close cooperation with the national regulatory authorities (NRAs) and the European Network of Transmission System Operators for Electricity (ENTSO-E). To this end, ACER established a project group with the concerned stakeholders.

To monitor and analyse the performance of RCCs, ACER must take into account the reports submitted by each of them pursuant to their reporting obligations under the Electricity Regulation.

To carry out its monitoring tasks, ACER has to:

  • issue approvals for any new advisory tasks of the RCCs;
  • request information from RCCs where appropriate in the context of monitoring and reporting obligations of RCCs;
  • issue opinions and recommendations to the European Parliament, the Council and the Commission; and
  • issue opinions and recommendations to RCCs.

Monitoring plan

As of 2023, ACER is monitoring the regular reporting obligations of the RCCs and plans to deliver an annual report on the submissions made by each of them, in accordance with their reporting obligations under the Electricity Regulation.

ACER plans to issue a report in early 2024 on the annual reports submitted during the course of 2023 (with respect to the period of 2022 since their establishment).

In the future, ACER plans to additionally monitor the RCCs’ performance of their tasks and aims to deliver a more detailed report focused on one particular RCC task or an aspect of a task each year. A monitoring roadmap will be defined in due course.

All ACER reports on regional coordination centres will be published on this page once available.

ACER monitoring report on RCC reporting obligations in 2022

In March 2024, ACER released its first monitoring report on RCC reporting obligations, developed in close cooperation with regulatory authorities and with the input from ENTSO-E and RCCs. The report focuses on the second half of 2022, following the establishment of RCCs. 

It provides an overview and summary of RCC reports, outlines key findings from the monitoring of the RCCs' performance, highlights areas for improvement, identifies best practices and offers recommendations to RCCs for future reporting.

New Electricity Regulation

Guaranteed cross-border capacity levels and temporary exemptions

Following the revision of the Electricity Regulation, Transmission System Operators (TSOs) have the obligation to reach a minimum level of cross-zonal capacity to facilitate electricity trading across countries.

When Member States or TSOs cannot comply with their obligations, they can establish an action plan, or ask for a derogation.

Derogations allow TSOs more time to implement the necessary measures and be compliant; and they are granted for a maximum of two years. Action plans provide time to address structural network constraints – possibly requiring investment – over a longer time horizon (5 years). National regulatory authorities can grant derogations, while action plans are provided by the Member State.

To facilitate the monitoring of the European electricity market, the Agency is compiling all the derogations and action plans granted and also collecting relevant documents.​

New Electricity Regulation

New rules on demand response

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The Electricity Regulation envisages the development of European network codes in different areas, based on a priority list established by the European Commission every three years.

The latest priority list for the development of harmonised electricity rules for 2020-2023 period includes the rules on demand side flexibility - including rules on aggregation, energy storage and demand curtailment rules.

To seek a diversified expert advice on these topics, ACER has established a dedicated Expert group on demand side flexibility.

On 21 October 2022, the European Commission invited ACER to carry out a scoping exercise for the coming Framework Guideline on this topic. ACER’s conclusions were delivered to the European Commission on 1 February 2022.

On 1 June 2022, the European Commission invited ACER to submit non-binding framework guidelines setting out clear and objective principles for the development of a network code on demand response. ACER ran a public consultation from 2 June to 12 August 2022. The resulting Framework Guideline on Demand Response was submitted to the European Commission on 20 December 2022.

The European Commission cleared ACER’s framework guideline in March 2023, and asked the DSO Entity and ENTSO-E to draft the proposal for the new binding EU rules. On 8 May 2024, ACER received electricity system operators’ proposal for an EU-wide network code on demand response. After reviewing and where necessary revising the system operators’ proposal, ACER will submit it to the European Commission by March 2025.

Have your say!

ACER is running a public consultation from 5 September to 31 October 2024 on what will be ACER-revised draft proposal. ACER will run a webinar during the consultation period, on 1 October 2024 (14:00 - 15:00 CET, online).