On 8 September, the Agency for the Cooperation of Energy Regulators (ACER) announced a possible review of the methodology for allocating congestion income for the European electricity markets, following a proposal by the transmission system operators (TSOs) to modify it. This methodology is essential to ensure a fair and efficient electricity market in Europe.
Congestion occurs when electricity transmission capacity between different regions is limited. The methodology in question determines how congestion revenues are allocated between TSOs to ensure fair treatment in accordance with the Capacity Allocation and Congestion Management (CACM) regulations.
The proposed revision aims to resolve non-intuitive electricity flows, where electricity moves from a high-cost area to a lower-cost area, and to specify the distribution of congestion revenues from balancing capacity trading and reserve sharing.
ACER will make a decision on this proposal by 5 January 2024, following consultations with TSOs and national regulators. This initiative would improve the transparency and efficiency of the European electricity market to the benefit of consumers and the energy industry.
Read the public notice concerning the initiation of the procedure: https://aeur.eu/f/8im (Original version in French by Nithya Paquiry)