ACER publishes its monitoring report on the Inter-Transmission System Operator Compensation mechanism

The Agency released today its Report on the implementation of the Inter-Transmission System Operator Compensation (ITC) mechanism in 2016. According to EU legislation, ACER annually reviews the implementation of this mechanism and the management of the ITC Fund established by ENTSO-E for the purpose of compensating TSOs for the costs incurred on national transmission systems due to hosting cross-border flows of electricity.  The Agency notes in its latest report that the losses component of the ITC Fund, further increased slightly compared to 2015, reaching €158.5 million (+ 3.6%). This was mainly triggered by an increase in the volume of losses incurred by transit. At the same time the weighted average value of losses used for the 2016 ITC mechanism decreased. The full report is available here.