ACER calls for greater clarity in German gas transmission tariffs proposal

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Gas pipeline
Intro News
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).

ACER calls for greater clarity in German gas transmission tariffs proposal

What is it about?

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 to decide on amending the harmonised allocation rules for long-term electricity transmission rights

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Electricity pylons
Intro News
On 27 March 2025, ACER received the transmission system operators’ (TSOs’) proposal to amend the Harmonised Allocation Rules (HAR) for long-term electricity transmission rights. ACER will open a public consultation on 24 April 2025.

ACER to decide on amending the harmonised allocation rules for long-term electricity transmission rights

What is it about?

On 27 March 2025, ACER received the transmission system operators’ (TSOs’) proposal to amend the Harmonised Allocation Rules (HAR) for long-term electricity transmission rights.

To inform its decision-making process, ACER will open a public consultation on 24 April 2025.

Why change the rules?

The harmonised allocation rules apply to all long-term transmission rights allocations conducted within the European Union. They provide specifications for the auctioning of long-term transmission rights (including use and curtailment of long-term transmission rights, eligibility criteria, etc.) and go through a review process every two years. 

The TSOs’ proposal updates various elements of the HAR related to arrangements with market participants to consider upcoming market changes (e.g. introduction of 15 minutes market time unit in day-ahead) and recent incidents (e.g. single-day ahead market decoupling in June 2024).

What are the next steps? 

The public consultation will run until 22 May 2025. 

ACER will decide on this amendment by 29 September 2025. 

2025

2025

Unlocking flexibility: No-regret actions to remove barriers to demand response

  • Electricity
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Renewables

2025 Monitoring Report

The ACER report Unlocking flexibility: No-regret actions to remove barriers to demand response identifies persistent barriers to demand response and proposes 12 no-regret actions to remove them. 

The report is a roadmap and a call to action for policymakers, system operators, regulators, and market participants to act now. These actions will enhance flexibility, improve system efficiency, reduce consumer costs, and support the energy transition.

What are flexibility and demand response?

Demand is the consumer side of the electricity market. Demand response is when consumers (or aggregators on their behalf) adjust their electricity consumption and generation in response to a change in the electricity market price (or a financial incentive) to increase/decrease/shift the timing of their electricity consumption. 

Power system flexibility is the electricity system’s ability to adjust to changing generation, consumption and grid conditions. Distributed energy resources, including demand response, energy storage, and distributed generation, play a key role in providing this flexibility.

Demand response supports more variable renewable generation and demand-side resources (e.g. electric vehicles) being added to the power grid. When consumers respond to price signals and actively participate in electricity markets, the benefits extend beyond them, helping to reduce price volatility for all consumers.

How is unlocking demand response linked to energy bills and the clean energy transition? 

Consumers have an important role to play in energy markets and the shift to cleaner energy. Enabling demand response supports this transition.

Recognising this, the first action of the European Commission’s Action Plan for Affordable Energy (February 2025) is to make electricity prices more affordable. 

One way to achieve this is by increasing flexibility in the power system. Greater demand response helps reduce price volatility and price spikes, makes it easier to integrate renewables, and increases overall system resilience.

What are ACER’s recommendations?

This ACER report identifies persistent barriers that hinder demand response participation in energy markets, limiting Europe’s flexibility potential. The ACER report sets out 12 concrete actions to remove the barriers to demand response, calling, for example, for:

  • Stronger price signals through more dynamic pricing and time-of-use tariffs to encourage consumer participation.

  • Simplified market entry allowing aggregators and small players to provide flexibility services.

  • Wider adoption of smart meters to enable real-time demand response.

ACER and the national regulatory authorities (NRAs) agree to follow the actions in the report and call on policymakers, Member States, system operators, and market players to similarly focus on these 12 actions.

Highlights

  • More than 70% of EU households lack dynamic pricing contracts. Consumers need better incentives to shift their consumption and get paid for doing so.

  • 50% more flexibility needed by 2030. Unlocking demand response is critical for a secure and efficient electricity system.

  • Slow smart meter rollout. Many EU countries have yet to meet deployment targets.

Report

This ACER report on no-regret actions for demand response:

  • Analyses key barriers preventing full participation of distributed energy resources in energy markets.

  • Assesses the impact of current regulations and market practices on flexibility resources.

  • Sets out 12 actions to lift barriers to demand-side participation in energy markets.

  Access the report

Infographic

ACER identified 12 action points that policymakers, system operators, market participants, and national regulators can implement to remove barriers to demand response and enhance flexibility.

  Dive into ACER's 12 actions

ACER consultation

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ACER updates its Q&As on REMIT to align them with the revised regulation

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Q&As
Intro News
The Q&A document (first published in 2011) summarises frequently asked questions about REMIT and their answers.

ACER updates its Q&As on REMIT to align them with the revised regulation

What is it about?

The Regulation on Wholesale Energy Market Integrity and Transparency (REMIT) is the EU framework that aims to prevent wholesale energy market abuse and support fair competition. The regulation was amended in 2024 to ensure the regulatory framework keeps pace with evolving market dynamics.

Now, ACER has updated its Questions & Answers (Q&As) on REMIT to incorporate the changes introduced in the amended regulation. 

The Q&A document (first published in 2011) summarises frequently asked questions about REMIT and their answers. It provides market participants and other stakeholders with information on REMIT definitions, market participant obligations, transaction reporting, and more.

What’s new in the updated Q&As?

This 30th edition aims to align the document’s legal references with the revised regulation and clarify key concepts, including:

  • new obligations for third-country market participants;

  • order book reporting by organised marketplaces; and

  • the expansion of REMIT’s scope to include new products (such as energy storage and hydrogen). 

The revised Q&As provide clearer explanations of reporting and compliance aspects, helping market participants to better understand the new requirements.

For additional questions about REMIT implementation and data reporting, stakeholders are encouraged to:

ACER amends the EU electricity single intraday coupling products methodology to enhance market flexibility

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Electricity trading
Intro News
ACER has approved a proposal from Nominated Electricity Market Operators (NEMOs) to amend the single intraday coupling (SIDC) products methodology.

ACER amends the EU electricity single intraday coupling products methodology to enhance market flexibility

What is it about?

With its Decision 03-2025, ACER has approved a proposal from Nominated Electricity Market Operators (NEMOs) to amend the single intraday coupling (SIDC) products methodology

Why is single intraday market coupling important? 

Before ‘market coupling’ was introduced in the EU, cross-border power grid capacity and electricity had to be bought separately. Now, market coupling (day-ahead and intraday) allocates scarce cross-border grid capacity efficiently by coupling wholesale electricity markets in different regions, while taking into account cross-border power grid constraints. 

With the growth in intermittent renewables (e.g. wind and solar), there is a growing interest in intraday trading for market participants to be in balance after the closure of the day-ahead market and as close to real time as possible. This flexibility benefits both market participants and power systems. 

What is the methodology about?

The SIDC products methodology is defined by the Capacity Allocation and Congestion Management (CACM) Regulation. The methodology specifies the types of products that can be traded within the EU’s continuous single intraday market and in intraday auctions. Here, trading begins the day before delivery and continues through the day of delivery, supporting real-time adjustments to supply and demand across borders.

Why did ACER amend the methodology and what’s new?

The update aligns the SIDC products methodology with the single day-ahead coupling (SDAC) products methodology (amended in September 2024 to allow 15-minute trading). With this change, market participants will be able to trade electricity in 15-minute intervals in both day-ahead and intraday markets, resulting in enhanced market flexibility.

Harmonising trading rules across both markets is necessary to comply with the EU Electricity Regulation and reduce entry barriers for market participants trading short-term products. 

What are the next steps? 

NEMOs are required to implement the amendments promptly after adoption.

Getting the price signals right: ACER’s principles for fair and cost-reflective electricity network tariffs

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Electricity pylons among households
Intro News
This ACER report enhances transparency and comparability in electricity network tariff setting by sharing national practices. It also examines and offers insights into various tariff challenges faced by energy regulators.

Getting the price signals right: ACER’s principles for fair and cost-reflective electricity network tariffs

What is it about?

Today, ACER publishes its report on electricity network tariff methodologies. This report analyses how network tariffs are set across the EU and how network costs are allocated across different network users (e.g. generators, consumers, battery facilities or other storage operators). 

The report enhances transparency and comparability in electricity network tariff setting by sharing national practices. It also examines and offers insights into various tariff challenges faced by energy regulators. 

How is it relevant to the European Commission’s Action Plan for Affordable Energy?

Network charges finance the operation and upgrade of the power grid. ACER has repeatedly flagged that, for EU competitiveness, network costs need to be contained as they are one of the main drivers of electricity costs.

Action 1 of the European Commission’s Action Plan for Affordable Energy (February 2025) is to make electricity prices more affordable. The ACER tariff practices report, which emphasises fair and cost-reflective electricity network tariffs, is timely as the European Commission puts forward (Q2 2025) a design of tariff methodologies for network charges to incentivise the use of flexibility and investments in electrification.

What are ACER’s key messages? 

  • Getting the price signals right is key. As the energy transition advances, network costs are expected to rise (possibly to double by 2050) and account for a bigger share of the electricity bill (see ACER report on electricity infrastructure, December 2024). This calls for a regular ‘fitness check’ by regulators of network tariff methodologies. Ensuring the network tariffs send the right price signals optimises grid use and keeps network costs down.
  • Containing the rise in network costs is important for EU competitiveness and affordable electricity. Future-proof measures should ensure all network users receive signals for flexibility and system efficiency, rather than unduly shifting costs among them.
  • Network tariffs should be cost-reflective to encourage users to adapt their behaviour. Together with market prices, they provide a combined price signal, influencing users’ electricity generation and consumption patterns. 
  • Two-thirds of EU countries have recently made (or plan to make) major revisions to their network tariff methodologies. Many of these changes align with ACER’s past recommendations (including increasing the use of power-based tariffs in alignment with the cost-causality principle, introducing time-of-use signals and removing unjustified discounts).
  • Local power system context matters. No ‘one-size-fits-all’ solution can be easily found: this ACER report presents select national practices from which regulators can draw inspiration to increase system efficiencies and keep electricity network costs down, tailoring them to local needs.

ACER offers 10 principles for national regulatory authorities (NRAs) to consider when setting or approving their next electricity transmission or distribution tariff methodologies. These aim to:

  • enhance transparency and comparability of network tariff methodologies;
  • ensure non-discrimination among network users;
  • promote cost-reflectivity and efficient price signals; and
  • foster stakeholder engagement before major methodology revisions.

What are the next steps?

ACER will continue to facilitate the exchange of best practices among NRAs, engaging closely with stakeholders to gain valuable insights.  

ACER stands ready to support the European Commission as it develops its guidance on the design of electricity network methodologies (2025) and its Electrification and Grids Package (2026).

Expert Groups

Expert Groups

Currently operating

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Experts discussing

Expert Group on EU-wide flexibility needs assessment

Expert Group on EU-wide flexibility needs assessment

Scope of the Expert Group

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Experts discussing

The primary focus of the Expert Group is to help ACER conduct a pan-European flexibility needs assessment, as mandated by the 2024 Electricity Market Design (EMD) Regulation. This assessment will evaluate how well the EU’s electricity system can adapt to fluctuating demand and generation patterns to cost-effectively integrate increasing shares of variable renewables while ensuring security of supply. It will also evaluate the potential impact of introducing new measures to unlock flexibility on the European electricity markets.

The Expert Group will support ACER in the development of a robust analytical tool to complete this assessment. Members will provide insights and recommendations on:

  • best modelling techniques and their implementation; 
  • solutions to model the flexibility needs of the system; and
  • other key topics related to improving system flexibility. 

The group will operate for two years, i.e. until April 2027, with the possibility of extension if needed.

The Expert Group is composed by the following members (in alphabetical order):

  • Ana Estanqueiro
  • Andreas Ehrenmann
  • Andreas Tirez
  • Annette Jantzen
  • César Martínez
  • Cristina Corchero
  • Daniel Davi Arderius
  • Eamonn Lannoye
  • Ellen Beckstedde
  • Emmanuel Neau
  • Erik Delarue
  • Hans de Heer
  • Jalal Kazempour
  • José Pablo Chaves Ávila
  • Julie Dallard
  • Kristof De Vos 
  • Laurens J. de Vries
  • Laurent Schmitt
  • Leonard Göke
  • Lucie Meier 
  • Marcia Poletti
  • Mariya Trifonova
  • Marko Aunedi
  • Michal Cabala
  • Pawel Czyzak
  • Sophie Yule-Bennett
  • Sylvain Quoilin
  • Tim Schittekatte
  • Tom Brown
  • Yannick Perez

Observers:

  • Edwin Haesen (ENTSO-E)
  • Tereza Stasakova (European Commission)

Expanding EU energy market integration is key for EU decarbonisation and global competitiveness

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Gas pipe wind turbines
Intro News
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.

Expanding EU energy market integration is key for EU decarbonisation and global competitiveness

What is it about?

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).