Congestion Revenues

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What is it?

​​​​​​​​​​Congestion management procedures associated with a pre-specified timeframe may generate revenue in case network congestion happens in that specific period.

However, all income generated as a result of the cross-zonal capacity allocation must be used as a priority for either guaranteeing the actual availability of the allocated capacity, or for maintaining or increasing cross-zonal capacities. Only where these objectives are fulfilled, the revenues can be used as income when determining network tariffs. Potential residual revenues shall be place on an internal account line until they can be spent for the abovementioned purposes.

The relevant methodology for congestion revenues use must be proposed by the TSOs and it has to set out:

  • the conditions under which congestion revenues can be used for fulfilling the priority objectives,

  • the conditions for placing the residual revenues on a separate internal account line for future use along with the amount of time those revenues can be placed on such an account line.

Transmission System Operators must report to national regulatory authorities (NRAs) how they are expecting to use the congestion income and how they actually used it. On yearly basis, NRAs must inform ACER and publish a report detailing the amount of the collected revenue, as well as how it was used in view of fulfilling the priority objectives. The report must also highlight the amount placed on a separate account line and the quantity used when calculating network tariffs.​

What's the role of ACER?

​ACER decides on the proposed methodology and can request TSOs to amend or update it. ACER also receives yearly reports on the congestion revenue use from NRAs.​

 

 

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