On Friday 26 July, in its 2022 annual monitoring report on the ITC mechanism, the Agency for the Cooperation of Energy Regulators (ACER) highlighted an increase in compensation for transmission system operators covering losses due to cross-border transit flows.
The ITC mechanism aims to ensure fair compensation between transmission system operators (TSOs) for hosting cross-border electricity flows on their networks.
The ITC fund, set up by the European Network of Transmission System Operators for Electricity (ENTSO-E), pays TSOs according to the amount of electricity they import and export across their national borders and the volume of transits they carry through their networks.
In 2022, the cost of losses, used by the ITC mechanism to calculate each party’s contribution and compensation, increased by 66% compared with 2021, leading to a record-high ITC fund of €605 million. This increase can be explained by soaring electricity prices.
Notable changes in net beneficiary or net contributor positions were also observed among the 35 parties to the ITC, with significant contributions from Italy and Norway and significant compensation received by Switzerland, Poland, Denmark, Great Britain and Estonia.
ACER also identified problems with data accuracy and timeliness, recommending improved methods for determining losses and input data, greater transparency and stricter enforcement of contractual deadlines.
To see the ACER publication: https://aeur.eu/f/d5l (Original version in French by Pauline Denys)