ACER published today the minutes from its 2023 REMIT Roundtables.

On 15 and 16 November 2023, ACER hosted a series of Roundtable meetings on REMIT data reporting and transparency within wholesale energy markets. Joint and individual sessions took place, bringing together a diverse group of ACER’s stakeholders, including representatives from Associations of Energy Market Participants (AEMPs), Organised Market Places (OMPs), and Registered Reporting Mechanisms (RRMs).

What were the main discussion points?

• Ongoing REMIT activities: emphasis was placed on the continuous improvement in REMIT data quality and the exponential growth of data received. Strategies for addressing related challenges and enhancement measures were also discussed.

• Consultation on the REMIT transaction reporting guidance: this year's consultation addressed the updated transaction reporting guidance, focusing on clarifying the reporting of specific transactions and the introduction of a new Annex to the Transaction Reporting User Manual (TRUM) on the reporting of LNG supply contracts.

• Revision of the REMIT data reporting framework: the discussion around this forward-looking topic focused on aligning regulatory practices with the evolving landscape of the energy market.

For more details on the topics that were discussed, check out the minutes of each Roundtable meeting:

Associations of Energy Market Participants (AEMPs).

Organised Market Places (OMPs).

Registered Reporting Mechanisms (RRMs).

ACER publishes its multi-annual work 'Single programming document 2024-2026' which sets out:

• ACER’s strategic goals and priorities in upcoming years;
• ACER’s 2024 annual work programme.

Which are ACER’s priorities for 2024-26?

ACER's will continue its work on:

• the internal energy market;
• infrastructure and security of supply;
• the integrity and transparency of wholesale energy markets;
• longer-term regulatory challenges; and
• the resilience, efficiency and agility of ACER.

Access previous editions.

ACER approves today the proposal received by Transmission System Operators (TSOs) to amend the congestion income distribution methodology in the European electricity markets.

What is the congestion income distribution methodology?

Congestion arises when there is limited capacity to transport electricity between different areas. When a congestion occurs, a price difference emerges between the different bidding zones which generates congestion income. The congestion income distribution methodology describes how to distribute such income among TSOs to ensure fairness and efficient operation of the electricity market.

Why the need to amend the methodology?

There are two main reasons for amending the methodology:

• Several mechanisms (such as flow-based allocation or advanced hybrid coupling) have recently been or will soon be implemented to increase the efficiency of the market coupling. However, these mechanisms can cause unintuitive flows (electricity flows from an expensive zone to a cheaper one). This amendment aims to address the financial consequence of unintuitive flows and to ensure a non-discriminatory treatment of all TSOs.

• In the future, exchange of balancing capacity or sharing of reserve will be implemented. Both mechanisms would generate congestion income that need to be distributed. This amendment will regulate how congestion income will be distributed among TSOs.

What are the next steps?

Following ACER’s approval of the methodology, European TSOs will implement the required changes.  

On 22 December 2023, with its Decision 18/2023, ACER approved the proposal of the Transmission System Operators (TSOs) to amend the Harmonised Allocation Rules (HAR) for long-term electricity transmission rights.

What is it about?

On 1 March 2023, ACER received the TSOs’ proposal for amending the HAR for long-term transmission rights under the Regulation on forward capacity allocation. On 1 August 2023, the TSOs completed their proposal with amendments to the provisions on collaterals.

To take an informed decision, ACER engaged with stakeholders through a public consultation and a workshop in summer 2023.

Why were the rules amended?

Amending the HAR was needed to introduce the flow-based allocation of long-term transmission rights and enable cross-zonal coordination. This will make the long-term electricity market more efficient and aligned with the day-ahead market design.

Flow-based allocation of long-term transmission rights is a mechanism that efficiently allocates cross-border transmission capacity in the electricity market. It takes into account the physical reality of the transmission network by calculating the available capacities of physical network elements for electricity exchanges between different areas, as well as sensitivity factors.

A flow-based mechanism enables cross-zonal coordination in the long-term electricity markets, which provides more accurate price signals for cross-border trade, reduces market distortions and ensures that the prices reflect the true cost of generating and transmitting electricity.

The amendment of the HAR allows for the implementation of two projects for long-term flow-based capacity calculation and allocation in the Core and Nordic capacity calculation regions. The HAR revision was the final step needed for the implementation of these projects, following ACER’s approval of other related methodologies in March 2023.

What are the next steps?

The amended HAR will apply from the date specified in the amendment notice published by the Joint Allocation Office.