On 8 January 2024, ACER has received an amendment proposal by the European Network of Transmission System Operators for electricity (ENTSO-E) to amend the methodology for identifying regional electricity crisis scenarios.

What is the methodology about?

The methodology for identifying regional electricity crisis scenarios was first approved by ACER in 2020 under the EU Regulation on risk-preparedness in the electricity sector. The Regulation introduces a set of rules on how to prevent, prepare for and manage electricity crises, bringing more transparency in the preparation phase and during an electricity crisis and ensuring that measures are taken in a coordinated and effective manner.

The methodology introduces a structured approach for regional electricity crisis scenarios (prepared by ENTSO-E) and national ones (prepared by national competent authorities) and thus serves as a foundation for the development of consistent risk-preparedness plans.

What is the proposal about?

The key changes of the amendment proposal are:

• Introducing a top-down process, starting with 31 regional electricity crisis scenarios, merging certain ones or adding new ones and focusing on extreme scenarios with regional impact.
• Earlier engagement of Member States and competent authorities.
• More pragmatic approach: ENTSO-E to undertake quantitative methods and model-based simulations where seasonal adequacy tools can be applied.

When approved, ENTSO-E shall use the methodology to identify the most relevant electricity crisis scenarios at regional level (including cross-border dependencies) and update the regional electricity crisis scenarios at least every four years.

What are the next steps?

ACER has 2 months (i.e. by 8 March 2024) to decide on the proposed amendment.

To make an informed decision, ACER will consult National Regulatory Authorities (NRAs), ENTSO-E and the Electricity Coordination Group (ECG) during the amendment process.

Learn more about the methodology and the amendment process.

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.