The EU Agency for the Cooperation of Energy Regulators (ACER) and the European Network of Transmission System Operators for Gas (ENTSOG) have discussed how to ensure greater flexibility to book firm capacity at interconnection points in an online workshop held on 27 June 2022. The discussion is also known as FUNC issue (ID 01/2020).

What is the FUNC issue?

The FUNC issue was reported by the European Federation of Energy Traders (EFET) who has proposed to make firm IP capacity more readily available to shippers by enabling Transmission System Operators (TSOs) to offer it for sale in uniform price allocation (UPA) auctions (outside the auction timetable dates envisaged by the Network Code on Capacity Allocation Mechanisms).

What’s the way forward?

Several solutions to enable a more flexible capacity allocation process, as well as the urgency of facilitating this process, were debated at the workshop. To learn more, access the recording and the slides presented at the event.

To further inform its decision-making process, ACER and ENTSOG are now opening a public consultation to continue the collection of more detailed inputs from stakeholders, particularly in relation to:

• how to optimise capacity allocation and

• how to assess and prioritise the proposals presented in the workshop, as well as their urgency.

Special attention is paid to the current and fast evolving conditions in the EU gas markets and how a change in capacity allocation would benefit the markets.

Update as of 4 August 2022: The deadline to provide input has been extended until 18 August 2022. 

The inputs gathered during the workshop and the public consultation will be key for ACER and ENTSOG to prepare a solution note, closing the FUNC case.

Access the Public Consultation.

On 25 June 2022, the Dispute Settlement and Sanctions Committee (CoRDiS) of the French energy regulatory authority (CRE) published a sanction decision adopted on May 19, 2022 imposing a fine of €80,000 on Engie SA (Engie), for breaching the prohibition of insider trading under Article 3 of REMIT, the EU Regulation on Wholesale Energy Market Integrity and Transparency.

Under REMIT, using inside information by acquiring/disposing of wholesale energy products to which that information relates, or disclosing inside information to any other person (unless such disclosure is part of the normal exercise of their employment, profession or duties) is prohibited as insider trading.

In the present case, CoRDiS found that on 23 January 2017, in the context of unavailability of two of Engie’s gas fired power plants:

• a member of Engie’s Dispatch team communicated to a member of the Trading Team inside information on the extension of unavailability of the Combigolfe power plant, before disclosure of the inside information to the market (breach of Article 3(1)(b) of REMIT);
• the Trading team used the inside information to enter into five transactions on two hourly products on EPEX SPOT’s French intraday market (breach of Article 3(1)(a) of REMIT).

CoRDiS noted the weakness of Engie’s internal procedures at the time of the event, based exclusively on oral exchanges between the officials of Engie’s Dispatch and Trading teams and aiming at preventing the dissemination of inside information, which could not prevent the occurrence of the infringement.

Access CoRDiS’ decision (in French).

The sanction decision can be subject to an appeal to the French Conseil d’Etat.

ACER Guidance

ACER provides guidance to national regulatory authorities (NRAs) on the application of the REMIT regulation.

In 2021, ACER updated its Guidance on REMIT (6th Edition) to anticipate upcoming decisions from NRAs on insider trading. The updated Guidance included a specific chapter on the prohibition of insider trading (Chapter 5).

ACER welcomes this decision against insider trading under REMIT. It is the third REMIT decision by the French regulator in two months, the other ones imposed on EDF and EDFT.

The EU Agency for the Cooperation of Energy Regulators (ACER) has published the 8th edition of its annual report on the progress of electricity and gas Projects of Common Interest (PCIs​) for trans-European energy infrastructure for the year 2021.​

PCIs are key cross-border electricity and gas infrastructure projects that enhance the links between the energy systems across Europe. They also play a crucial role in helping the EU to achieve its energy policy, security of supply and climate objectives by delivering socio-economic and environmental benefits. Every two years ACER reports on the progress of the projects' implementation of the most recent PCI list, which is adopted by the European Commission.

The 8th edition of the report evaluates 72 electricity and 20 gas priority projects of the European Union, amounting to €73.9 billion.

What are the report’s main findings?

ACER confirms the positive trend in the implementation of PCIs, as recorded in recent years:

•  most of the progresses are in line with the projects’ planned schedule,

• about 70% of the projects are already in permitting phase or under construction. They are expected to be implemented within the next 5 years.

However, ACER also notes that about:

• 30% of the PCIs encountered delays, frequently caused by permit granting reasons,

• 15% have been rescheduled by the project promoters, for various reasons, including uncertainty connected with the levels of demand and supply.

In line with its mandate, the report focuses on the projects’ past performances. It does not provide recommendations regarding future infrastructure needs or their potential changes, particularly in light of the recent energy price hikes and the new circumstances related to EU energy imports.

Access the PCI Report​ and related Annex I for project specific information on electricity PCIs and Annex II for further information on gas PCIs.

Related information

On 3 June 2022, the revised TEN-E Regulation (laying down new EU rules for cross-border energy infrastructure, including PCIs) was published in the Official Journal of the European Union. The new Regulation, among others, aims to:

• conform the infrastructure development to reflect the climate mitigation’s targets,

• promote the integration of renewables and of clean energy technologies into the energy system,

• continue to connect isolated regions,

• strengthen existing cross-border interconnections and

• promote cooperation with partner countries.