text: Recommendation No 01/2020

text: OJ L 158, 14.6.2019, p.1. 2 OJ L 158, 14.6.2019, p.84.

text: Recommendation No 01/2020

text: Regulation (EC) No 714/2009

text: of the European Parliament and of the Council of 13 July 2009 on conditions for access to the network for cross-border exchanges in electricity and repealing

text: Regulation (EC) No 1228/2003

text: (OJ L 211, 14.8.2009, p.15).

text: Recommendation No 01/2020

text: Recommendation No 01/2020

text: Using the TYNDP codes, and if not available the National Development Plan ones.

text: Recommendation No 01/2020

text: Recommendation No 01/2020 considered fulfilled if the yearly target set in the latest multi-year estimate for category (vi) is met; b. if the difference CI of the previous year - actual total spending for categories (i) to(v) and (vii) to(ix) of article 3.1 of the UCI Methodology is less than the yearly target set in the latest multi-year estimate for category (vi) of article 3.1 of the UCI Methodology, then the priority objectives can be considered fulfilled if the actual spending on projects of category (vi) is equal or greater than the above difference. This Recommendation is addressed to National Regulatory Authorities.

text: Recommendation No 01/2020

text: Recommendation No 01/2020

text: Recommendation No 01/2020

text: Inputs € a) Amount of congestion income in the previous year X A

text: Applicable from 2023 NRA reports:

text: Recommendation No 01/2020

text: ix X Sum 0 (Checks: A should be equal to E, and B should be equal to D and equal to F)

text: (*) Only for projects not commissioned yet: the TYNDP code - if not available the NDP code

text: Cost categories defined by

text: Article 3(1)

text: Year y of the UCI (current Methodology year) Year y+1 Year y+2 Year y+3 Year y+4 Year n (*) i ii iii iv v vi vii viii

text: Recommendation No 01/2020

text: Sum 0 0 0 0 0 0

text: Project Project

text: Project code commissiong Expected name (*) date CAPEX Year y [up to (current Year Year Year commissioning year) y+1 y+2 y+3 ….. year] XZ YW

text: Recommendation No 01/2020

text: Annex III: Cost categories contributing to priority objectives (vi) and (vii) of article 3 of the UCI Methodology

text: vi. Ongoing investment or capital expenditures for renewal, replacement, reinforcement of existing assets, or new assets which significantly contribute to maintaining or increasing crosszonal capacity, including the costs of development and construction phases of such assets.

text: Investment or capital expenditures shall include, inter alia:

text: a) The efficiently incurred costs related to dismantling assets, as long as they are related to a renewal or reinforcement of those assets or they are a requirement set out as a result of the permitting process for the construction or refurbishment of another asset. b) All of the costs necessary for the permitting process, such as those allowing a better integration of the asset in the environment, provided they are considered efficient by the relevant NRA.

text: vii. Costs directly resulting from past network investments:

text: a) Capital expenditure costs during the depreciation period of the asset: depreciation and capital remuneration (equity and/or debt) related to investments which significantly contribute to maintaining or increasing cross-zonal capacity, b) Where applicable according to the national regulatory framework, remuneration of assets under construction related to investments which significantly contribute to maintaining or increasing crosszonal capacity, c) Where appropriate, cost of long-term leasing of network elements that significantly contribute to maintaining or increasing cross-zonal capacity.

identifier: ACER Recommendation No 01/2020

publisher: Europeiska unionens byrå för samarbete mellan energitillsynsmyndigheter

sprak: en

title: ACER Recommendation 01-2020 on Regulatory Activities and Reporting on the Use of Congestion Income

serie: rekommendationer

text: RECOMMENDATION No 01/2020 OF THE EUROPEAN UNION AGENCY FOR THE COOPERATION OF ENERGY REGULATORS of 23 December 2020

type: rubrik

text: ON NRAs’ ACTIVITIES AND REPORTING ON THE USE OF CONGESTION INCOME

type: stycke

text: THE EUROPEAN UNION AGENCY FOR THE COOPERATION OF ENERGY REGULATORS, Having regard to

text: Regulation (EU) No 2019/942

text: of the European Parliament and of the Council of 5 June 2019 establishing a European Union Agency for the Cooperation of Energy Regulators (recast) , and, in particular,

text: Articles 2

text: (b) and 6(2) thereof, Having regard to the outcome of the consultation with the ACER’s Electricity Working Group, Having regard to the favourable opinion of the Board of Regulators of 16 December 2020, delivered pursuant to

text: Article 22(5)

text: (a) of

text: Regulation (EU) No 2019/942

text: Whereas: (1) According to

text: Article 19(5) of Regulation (EU) 2019/943

text: of the European Parliament and Council of 5 June 2019 on the internal market for electricity (recast) (hereafter referred to as “

text: Regulation (EU) 2019/943

text: ”), every year National Regulatory Authorities (NRAs) shall inform ACER and shall publish a report regarding the amounts and the use of congestion income. (2) In accordance with

text: Article 19(4) of Regulation (EU) 2019/943

text: , ACER decided on the Transmission System Operators’ (hereinafter “TSOs”) proposal for a methodology for the use of congestion income (hereafter “UCI Methodology”). (3) Pursuant to Article 6 of the UCI Methodology, the UCI Methodology shall apply to congestion income (hereafter “CI”) collected from 1 January 2022 and shall be applicable from the first advance communication of each TSO.

text: (4) Therefore, the reports of National Regulatory Authorities (NRAs) regarding the use of CI in 2020 and in 2021 (to be published in early 2021 and in early 2022, respectively) are not affected by the provisions of the UCI Methodology.

text: (5) Starting with congestion income collected in 2022, the following procedural steps (as further explained in Annex I to this Recommendation) are applicable: - according to Article 4 of the UCI Methodology, each TSO shall send an advance communication to NRAs regarding the proposed use of CI during the next calendar year, with the first communication due by 30 September 2021; - according to Article 4(7) of the UCI Methodology, from 2021 on, the NRA shall decide by 31 December on the use of CI during the next calendar year; - according to Article 5(2) of the UCI Methodology, at the beginning of each calendar year, each TSO shall provide a communication (from 2023) to the relevant NRA on the actual use of CI during the previous calendar year, which shall be used as input for the NRA report; - according to

text: and to Article 6 of the UCI Methodology, by 1 March every year (from 2023), NRAs shall inform ACER and shall publish a report setting out: (a) the amount of revenue collected in the previous year; (b) how that revenue was used, including the specific projects the income has been used for, and the amount placed on a separate account line; (c) the amount that was used when calculating network tariffs; and (d) verification that the amount referred to in point (c) complies with

text: Regulation (EU) 2019/943

text: and the UCI Methodology.

text: (6) Pursuant to

text: Article 6(2) of Regulation (EU) 2019/942

text: , ACER may make recommendations to assist regulatory authorities and market participants in sharing good practices. As the implementation of

text: in 2020 showed different approaches across NRAs and some delays in implementing the new provision and as NRAs are subject to very strict timeline under

text: , ACER considers it appropriate to provide guidance to NRAs to harmonise and streamline their reporting obligations.

text: (7) Recital (41) of

text: Regulation (EU) 2019/943

text: states that to better ensure optimal investment in the trans-European grid and to better address the challenge where viable interconnection projects cannot be built for lack of prioritisation at national level, the use of congestion rents should be reconsidered.

text: Regulation (EU) 2019/943

text: introduced a NRA reporting on the use of congestion income to ACER, expanding the former provisions of NRA public reporting pursuant to point 6.5 of Annex (I) of

text: Regulation (EC) 714/2009

text: (8) In order to contribute to the goal set out in recital (41) of

text: Regulation (EU) 2019/943

text: and to the broader Union goals, ACER intends to monitor and report on the use of congestion income in the EU, including on whether its use contributes to the objectives set out in

text: Article 19 of Regulation (EU) 2019/943

text: . Such task is carried out in line with ACER’s duties to monitor the internal electricity markets as well as the implementation of the projects of common interest, the Union-wide network development plans and other projects which create new interconnector capacity. It will complement the related ACER reports and opinions.

text: (9) As the NRA reports on congestion income published pursuant to point 6.5 of Annex (I) of

text: Regulation (EC) 714/2009

text: were fragmented and different across Members States, standardised information from NRAs would be instrumental to ensure that ACER has the information it needs to carry out its task.

text: (10) The NRAs’ assessment stipulated in

text: Article 19(3) of Regulation (EU) 2019/943

text: of the adequate fulfilment of the objectives set out in Article 19(2) of the same Regulation depends on the observed time-window and the assessment is affected by the uncertainties of the future needs of new interconnection capacity. Therefore, this assessment can be performed in different ways, and in order to promote consistent implementation among the NRAs, ACER provides the present recommendation,

text: HAS ADOPTED THIS RECOMMENDATION:

text: ACER recommends National Regulatory Authorities (NRAs) to provide their reports pursuant to

text: according to the template of section 1 below, and (if applicable) submit a multi-year estimate of indicative amounts to be spent on cost categories of Article 3(1) of the UCI Methodology according to section 2 below.

text: ACER recommends NRAs to assess the adequate fulfilment of priority objectives set by

text: Article 19(2) of Regulation (EU) 2019/943

text: (hereafter “Priority Objectives”) according to section 3 below.

text: Note: The NRAs will be free to redact data, and send two versions of the report to ACER in case business secrets do not allow them to publish the full report

text: 1.1. In order to both facilitate the NRAs’ reporting task pursuant to

text: , and to streamline the ACER’s monitoring activity, ACER recommends that the NRA’s report pursuant to

text: Article 19(5)

text: includes the following elements:

text: Inputs

text: a) Amount of congestion income in the previous year; b) Amount available in separate internal account line from years before the previous one;

text: c) Adjustments of congestion income of previous years due to provisional data;

text: Expenditures and carry-over

text: d) Amount of congestion income used for Priority Objectives; e) Amount of congestion income not used in the previous year and placed in a separate internal account line; f) Amount of congestion income used for tariff reduction; If congestion income is used for tariff reduction, verification of compliance with

text: Regulation (EU) 2019/943

text: (assessment of adequate fulfilment of Priority Objectives);

text: Additional information

text: g) Amount of congestion income in the previous year per border; h) When expenditures are related to projects which increased or will increase cross zonal capacities, the following project-related information;  the project name and code ;  actual or expected commissioning date;  actual or expected total capital expenditure;  the yearly expenditure recovered from congestion income;  actual or expected capacity increase. 1.2. For congestion income of year 2022 (NRA’s report of 2023) and onwards the following additions are recommended: i) Congestion income used for each of the nine cost categories defined by Article 3(1) of the UCI Methodology; j) The project specific information of h) above should refer to the cost categories vi and vii defined by Article 3(1) of the UCI Methodology (see also Annex III to this Recommendation); k) The justification of the relevance of each project with the Priority Objectives according to article 4.3 of the UCI Methodology.

text: 1.3. If (b) or (e) above is not zero, the NRA report should include a multi-year estimate with the content described in section 2 below.

text: 1.4. If (f) above is not zero, the NRA report should include the assessment of adequate fulfilment of Priority Objectives, according to the criterion of section 3 below.

text: 1.5. ACER recommends NRAs to submit the above amounts to ACER in electronic format (as spreadsheet, according to the template of Annex II to this Recommendation or in other application made available by ACER).

text: 2.1. Under the condition that congestion income is placed in a separate internal account line, the TSOs shall include in their communication to their NRA a multi-year estimate of indicative CI amounts for the cost categories for which the separate account line will be used in the future. The multi-year estimate can be revised whenever deemed necessary by the competent NRA.

text: 2.2. If according to the multi-year estimate, CI is foreseen to be used for the cost category (vi) of article 3.1 of the UCI Methodology, ACER recommends that NRAs include in their reports, for each relevant project, as specified in recital 2.3 below, an indicative spending estimation for every year until its commissioning.

text: 2.3. For the purpose of recital 2.2, a project which significantly contributes to maintaining or increasing cross-zonal capacity is defined as a “relevant project” if it is included in the PCI list or its indicative total capital expenditure estimation exceeds: - 100 million euro for a Member State where the average transmission capital expenditure in the previous three years was above 1000 million euros; - 50 million euro for a Member State where the average transmission capital expenditure in the previous three years was in the range 500-1000 million euros; - 25 million euro for a Member State where the average transmission capital expenditure in the previous three years was less than 500 million euros.

text: 2.4. Revisions of the yearly spending estimation for the cost category (vi) of article 3.1 of the UCI Methodology should be explained in the following cases: - In case any of the yearly estimates significantly diverge from the corresponding estimate of the previous year (>+20% or <-20%); - In case of consecutive changes to the yearly estimates which amount for more than 20% of the initial estimate.

text: 3. Criterion of assessment of adequate fulfilment of Priority Objectives

text: 3.1. If the CI of the previous year is intended to be fully or partly used when calculating the network tariffs, the adequate fulfilment of Priority Objectives shall be assessed. 3.2. For NRAs’ reports of years 2021 and 2022, ACER recommends that the Priority Objectives are deemed as adequately fulfilled, if in the previous year it proved not possible to efficiently use a higher amount of congestion income on the Priority Objectives. 3.3. For NRAs’ reports of year 2023 and onwards, in the cases where a multi-year estimate was defined, ACER recommends that:

text: a. if the difference CI of the previous year - actual total spending for categories (i) to (v) and (vii) to(ix) of article 3.1 of the UCI Methodology is equal or greater than the yearly target set in the latest multi-year estimate for category (vi) of article 3.1 of the UCI Methodology, then the priority objectives can be

text: Done at Ljubljana, on 23 December 2020.

text: - SIGNED -

text: Fоr the Agency The Director

text: C. ZINGLERSEN

text: Annex I: Overview of the procedural steps according to the UCI Methodology

text: For the Congestion Income of year 2022 (NRA report 2023) and onwards:

text: 1.1 TSO’s proposal on the use of CI for the next calendar year(s)

text: Actor: TSOs Content of the action: TSOs shall communicate to their NRA the elements included in article 4.1 of the UCI Methodology regarding the following calendar year(s)

text: Time of action: by 31 October (unless an earlier date is decided by the competent NRA) annually or biennially (to be decided by the competent NRA), except for the first communication in 2021, which shall take place by 30 September.

text: 1.2. NRA’s decision on the use of CI for the next calendar year(s)

text: Actor: NRA Content of the action: According to point 4.7 of the UCI Methodology, each NRA shall decide: - for which of the cost categories (i) to (ix) of Article 3(1) of the UCI Methodology the TSO shall use congestion income in the upcoming period (one or two years); - on the relevance of the cost categories communicated by the TSO to the priority objectives; - if a separate internal account line was and/or is to be used, on the multi-year estimate for the separate internal account line and for which of the cost categories (i) to (ix) of Article 3(1) of the UCI Methodology the TSO shall place congestion income in the separate internal account line.

text: Indicative time of action: by 31 December

text: 1.3 TSO’s communication on the actual use of CI during the previous calendar year

text: Actor: TSOs Content of the action: TSOs shall communicate to their NRA any of the information set out in Section 1 of this Recommendation, as requested by the NRA.

text: Time of action: at the beginning of each year (unless a different date is decided by the NRA).

text: 1.4. NRA’s report on the use of CI for the previous calendar year

text: Actor: NRA Content of the action: the NRA shall publish and submit to ACER a report on the use of CI for the previous calendar year. ACER recommends that the NRA report provides information, according to the Template described in section 1 herein.

text: Time of action: by 1 March

text: Clarifications on the action: If CI of the previous year is intended to be fully or partly used when calculating the network tariffs, the NRA has to assess whether the priority objectives (a) and (b) of

text: Article 19 (2) of Regulation (EU) 2019/943

text: were adequately fulfilled. ACER recommends NRAs to perform this assessment according to the criterion described in section 3 herein.

text: Annex II: CI templates

text: CI overview

text: b) Amount available in separate internal account line from years before the previous one X c) Adjustment of congestion income of previous year due to provisional data ("+" if actual previous year was greater than the provisional one, "-" if it was less than the provisional one) X

text: Total available congestion income 0 B

text: Expenditures and carry-over

text: d) Amount of congestion income used for priority objectives set by Article 19(2) of Regulation 2019/943 X C e) Amount of congestion income not used in the previous year and placed in a separate internal account line X f) Amount of congestion income used for tariff reduction X

text: Sum of expenditure and carry-over of CI 0 D

text: Additional information

text: g) Amount of congestion income in the previous year for border X-Z X g) Amount of congestion income in the previous year for border X-Y X g) Amount of congestion income in the previous year for border X-W X

text: Sum of CI of previous year 0 E

text: Cost categories CI (€) i X ii X iii X iv X v X vi X vii X viii X

text: CI project-related information

text: When previous year expenditures are recovered from congestion income and are related to projects which increased or will increase cross zonal capacities, the following project-related information should be provided:

text: Project expenditure Justification of the g date recovered relevance of the from (*) project with the congestion ission Project priority objectives CAPEX Capacity increase per income in the Project code (**) (actual or border previous year comm Project name expected) (MW) (€) xx MW (border X‐Y) yy MW (border X‐Y) zz MW (border X‐W)

text: (If applicable) Multi-year estimate -future spending per category

text: 1. Indicative amounts to be spent for the cost categories defined by Article 3(1) of the UCI Methodology, for which the separate account line will be used in the future

text: (*) up to the last year when the income in the separate account is planned to be used

text: (If applicable) Multi-year estimate -spending per project

text: In case there is projected spending on the cost category (vi) of article 3.1 of the UCI Methodology, the following project-related information should be provided:

text: Project expenditure

text: (*) the TYNDP code - if not available the NDP code

type: vagledning

utgivare: acer


text: OJ L158, 14.6.2019, p. 22.

text: Recommendation No 01/2021

text: Recommendation No 01/2021

identifier: ACER Recommendation No 01/2021

title: ACER Recommendation 01-2021 on Setting the Level of the Multipliers Used for the Calculation of Gas Transmission Tariffs Applied to Non-Yearly Capacity Products

text: RECOMMENDATION No 01/2021 OF THE EUROPEAN UNION AGENCY FOR THE COOPERATION OF ENERGY REGULATORS of 19 July 2021 on setting the level of the multipliers used for the calculation of gas transmission tariffs applied to non-yearly capacity products

text: THE EUROPEAN UNION AGENCY FOR THE COOPERATION OF ENERGY REGULATORS, Having regard to

text: Regulation (EU) 2019/942

text: of the European Parliament and of the Council of 5 June 2019 establishing a European Union Agency for the Cooperation of Energy Regulators , and, in particular,

text: Articles 2

text: (b) and 6(2) thereof, Having regard to the outcome of the public consultation of ACER of 16 November 2020, Having regard to the outcome of the consultation with the ACER’s Gas Working Group, Having regard to the favourable opinion of the Board of Regulators of 13 July 2021, delivered pursuant to

text: Article 22(5) of Regulation (EU) 2019/942

text: , Whereas: (1) According to

text: Article 3(16) of Commission Regulation (EU) 2017/460 of 16 March 2017

text: establishing a network code on harmonised transmission tariff structures for gas (hereafter referred to as “NC TAR”), a multiplier is a factor applied to a yearly reference price in order to calculate the reserve price for a non-yearly standard capacity product; (2) According to Article 3(21) of the NC TAR, a seasonal factor is a factor reflecting the variation of demand within the year which may be applied in combination with the relevant multiplier; (3) In accordance with Article 28 of the NC TAR, every National Regulatory Authority (‘NRA’) is responsible for consulting the NRAs of all directly connected Members States and the relevant stakeholders, taking and publishing a motivated decision on multipliers

text: (4) Pursuant to

text: Article 6(2) of Regulation (EU) 2019/942

text: , ACER may make recommendations to assist regulatory authorities and market participants in sharing good practices, considering that the NC TAR did not close the question of the adequate ranges applicable to multipliers,

text: (5) Recalling that the ranges set for multipliers by Article 13(1) of the NC TAR are no less than 1 and no more than 1.5 for quarterly and monthly standard capacity products, pursuant to its subparagraph (a), and no less than 1 and no more than 3, except for duly justified cases, for daily and for within-day standard capacity products, pursuant to its subparagraph (b),

text: (6) Noting that the ranges for quarterly and monthly standard capacity products are not yet properly applied in some Member States,

text: (7) Recalling that Article 13(3) of the NC TAR provided that the Agency should issue a recommendation taking into account the effects of multipliers and seasonal factors such as induced changes in booking behaviour, their impact on the transmission services revenue and its recovery, induced differences between the level of transmission tariffs applicable for two consecutive tariff periods, the cross-subsidisation between network users having contracted yearly and non-yearly standard capacity products and their impact on cross-border flows;

text: (8) Considering that the aspects listed in the previous paragraph were assessed through the responses to the public consultation carried out by ACER from 16 November 2020 to 9 December 2020 as well as through its own assessment made available in the Annex to this Recommendation,

text: (9) Acknowledging that further standardisation of daily and for within-day standard capacity products as foreseen by Article 13(3) of the NC TAR will not be carried out because the current differences between interconnection points (IPs) justify the existing level of flexibility set out in

text: Article 13(1)

text: (b) of the NC TAR and rather advocates for a case-bycase approach,

text: HAS ADOPTED THIS RECOMMENDATION:

text: 1. Each NRA should substantiate their decisions regarding daily and within-day multipliers that lie above the upper threshold of

text: Article 13(1)

text: (b) of the NC TAR. When setting multipliers, the NRA should detail their regulatory objectives in particular in terms of market integration, liquidity, competition, cost reflectivity and tariff stability, as well as explain how they take into account the specificities of each IP, including their role in the system (supply or arbitrage), the availability of competing routes, the presence of legacy bookings and the risk of congestion.

text: 2. NRAs should closely consult each other whenever their Member States are directly connected to better coordinate their decisions regarding multipliers and seasonal factors at joint cross-border IPs, in order to avoid NRAs setting contradictory incentives on each side of a same IP. The multipliers for quarterly and monthly products shall remain within the range set by

text: Article 13(1)

text: (a) of the NC TAR (no less than 1 and no more than 1,5). The NRAs should take the necessary measures to ensure that multipliers for quarterly and monthly products are applied properly. The irregular application of multipliers outside the allowed range for quarterly and monthly products should be terminated as soon as possible. This Recommendation is addressed to the National Regulatory Authorities. Done at Ljubljana, on 19 July 2021.

text: - SIGNED -

text: Fоr the Agency The Director

text: C. ZINGLERSEN

text: Annexes: Annex I – Table of multiplier levels for the distinct non-yearly capacity products in each Member State Annex II – Evaluation of responses to the public consultation, assessment and conclusions


text: Recommendation No 01/2022

text: Having regard to the outcome of the consultation with the ACER’s Electricity Working Group,

text: OJ L 158, 14.6.2019, p.1. 2 OJ L 158, 14.6.2019, p.84.

text: Recommendation No 01/2022

text: Recommendation No 01/2022

text: Regulation (EC) No 714/2009

text: of the European Parliament and of the Council of 13 July 2009 on conditions for access to the network for cross-border exchanges in electricity and repealing

text: Regulation (EC) No 1228/2003

text: (OJ L 211, 14.8.2009, p.15).

text: Recommendation No 01/2022

text: Using the TYNDP codes, and if not available the National Development Plan ones.

text: Recommendation No 01/2022

text: Recommendation No 01/2022

text: Recommendation No 01/2022

text: Recommendation No 01/2022

text: Recommendation No 01/2022

text: Inputs € a) Amount of congestion income (CI) collected within the reporting period at Member State-Member State borders or between internal Bidding Zones of a Member State X A b) Amount stored in separate internal account line from years before the previous one (at the beginning of the reporting period) X c) Adjustment of congestion income of previous year due to provisional data ("+" if actual previous year was greater than the provisional one, "-" if it was less than the provisional one) X

text: For transparency, in this section also the CI collected at non-EU borders should be reported.

text: Recommendation No 01/2022

text: Checks: A (only the part pertaining to MS-MS borders and internal BZs) should be equal to E, B should

text: be equal to D and C should be equal to F

text: (*) Only for projects not commissioned yet: the TYNDP code, and if this is not available the NDP code (**) Justification according to article 1.2 of this Recommendation. (***) Especially in the following cases: (a) if the current TYNDP data (commissioning date, expected or actual CAPEX) need updating or (b) for NDP projects reported for first time in the UCI report, their total CAPEX

text: Recommendation No 01/2022

text: Cost categories defined by Article Year y 3(1) of the UCI (current Methodology year) Year y+1 Year y+2 Year y+3 Year y+4 Year n (*) i ii iii iv v vi vii viii ix

text: Sum 0 0 0 0 0 0

text: Project code name (*)

text: Year y (current Year Year Year

text: year) y+1 y+2 y+3 ….. [up to commissioning year] XZ YW

text: Recommendation No 01/2022

text: Annex III: Cost categories contributing to priority objectives (vi) and (vii) of article 3 of the UCI Methodology

text: vi. Ongoing investment or capital expenditures for renewal, replacement, reinforcement of existing assets, or new assets which significantly contribute to maintaining or increasing crosszonal capacity, including the costs of development and construction phases of such assets.

text: Investment or capital expenditures shall include, inter alia:

text: a) The efficiently incurred costs related to dismantling assets, as long as they are related to a renewal or reinforcement of those assets or they are a requirement set out as a result of the permitting process for the construction or refurbishment of another asset. b) All of the costs necessary for the permitting process, such as those allowing a better integration of the asset in the environment, provided they are considered efficient by the relevant NRA.

text: vii. Costs directly resulting from past network investments:

text: a) Capital expenditure costs during the depreciation period of the asset: depreciation and capital remuneration (equity and/or debt) related to investments which significantly contribute to maintaining or increasing cross-zonal capacity, b) Where applicable according to the national regulatory framework, remuneration of assets under construction related to investments which significantly contribute to maintaining or increasing crosszonal capacity, c) Where appropriate, cost of long-term leasing of network elements that significantly contribute to maintaining or increasing cross-zonal capacity.

identifier: ACER Recommendation No 01/2022

title: ACER Recommendation 01-2022 to the NRAs on the Use of Congestion Income

text: RECOMMENDATION No 01/2022 OF THE EUROPEAN UNION AGENCY FOR THE COOPERATION OF ENERGY REGULATORS of 20 December 2022

text: ON NRAS’ ACTIVITIES AND REPORTING ON THE USE OF CONGESTION INCOME

text: THE EUROPEAN UNION AGENCY FOR THE COOPERATION OF ENERGY REGULATORS,

text: Having regard to

text: Regulation (EU) No 2019/942

text: of the European Parliament and of the Council of 5 June 2019 establishing a European Union Agency for the Cooperation of Energy Regulators (recast) , and, in particular,

text: Articles 2

text: (b) and 6(2) thereof,

text: Having regard to the favourable opinion of the Board of Regulators of 14 December 2022, delivered pursuant to

text: Article 22(5)

text: (a) of

text: Regulation (EU) No 2019/942

text: Whereas:

text: (1) According to

text: Article 19(5) of Regulation (EU) 2019/943

text: of the European Parliament and Council of 5 June 2019 on the internal market for electricity (recast) (hereafter referred to as “

text: Regulation (EU) 2019/943

text: ”), every year National Regulatory Authorities (NRAs) shall inform ACER and shall publish a report regarding the amounts and the use of congestion income.

text: (2) In accordance with

text: Article 19(4) of Regulation (EU) 2019/943

text: , ACER decided on the Transmission System Operators’ (hereinafter “TSOs”) proposal for a methodology for the use of congestion income (hereafter “UCI Methodology”).

text: (3) Pursuant to

text: , on 23 December 2020, ACER issued its recommendation No 1/2020 on the NRA activities and reporting on the use of congestion income, providing guidance to NRAs to harmonise and streamline their reporting obligations under

text: (4) In accordance with

text: Article 9 (1) of Council Regulation (EU) 2022/1854

text: on an emergency intervention to address high energy prices by way of derogation from Union rules on congestion income, Member States may use the surplus congestion income revenues

text: resulting from the allocation of cross-zonal capacity to finance measures in support of final electricity customers.

text: (5) Pursuant to Article 6 of the UCI Methodology, the UCI Methodology shall apply to congestion income (hereafter “CI”) collected from 1 January 2022 and shall be applicable from the first advance communication of each TSO.

text: (6) Therefore, the provisions of the UCI Methodology are in full effect for the reports of National Regulatory Authorities (NRAs) regarding the use of CI 2022 (to be published in early 2023.

text: (7) In light of the above, of the experience in the first two years of NRA reporting on the amounts and use of congestion income and of the need for updates due to

text: Council Regulation (EU) 2022/1854

text: , ACER deems it appropriate to issue an update of its recommendation on NRA reporting, to assist regulatory authorities and market participants in sharing good practices pursuant to

text: (8) Starting with congestion income collected in 2022, the following procedural steps (as further explained in Annex I to this Recommendation) are applicable: - according to Article 4 of the UCI Methodology, each TSO shall send an advance communication to NRAs regarding the proposed use of CI during the next calendar year, with the first communication due by 30 September 2021; - according to Article 4(7) of the UCI Methodology, from 2021 on, the NRA shall decide by 31 December on the use of CI during the next calendar year; - according to Article 5(2) of the UCI Methodology, at the beginning of each calendar year, each TSO shall provide a communication (from 2023) to the relevant NRA on the actual use of CI during the previous calendar year, which shall be used as input for the NRA report; - according to

text: and to Article 6 of the UCI Methodology, by 1 March every year (from 2023), NRAs shall inform ACER and shall publish a report setting out: (a) the amount of revenue collected in the previous year; (b) how that revenue was used, including the specific projects the income has been used for, and the amount placed on a separate account line; (c) the amount that was used when calculating network tariffs; and (d) verification that the amount referred to in point (c) complies with

text: Regulation (EU) 2019/943

text: and the UCI Methodology.

text: (9) Recital (41) of

text: Regulation (EU) 2019/943

text: states that to better ensure optimal investment in the trans-European grid and to better address the challenge where viable interconnection projects cannot be built for lack of prioritisation at national level, the use of congestion rents should be reconsidered.

text: Regulation (EU) 2019/943

text: introduced a NRA

text: reporting on the use of congestion income to ACER, expanding the former provisions of NRA public reporting pursuant to point 6.5 of Annex (I) of

text: Regulation (EC) 714/2009

text: (10) In order to contribute to the goal set out in recital (41) of

text: Regulation (EU) 2019/943

text: and to the broader Union goals, ACER intends to monitor and report on the use of congestion income in the EU, including on whether its use contributes to the objectives set out in

text: Article 19 of Regulation (EU) 2019/943

text: . Such task is carried out in line with ACER’s duties to monitor the internal electricity markets as well as the implementation of the projects of common interest, the Union-wide network development plans and other projects which create new interconnector capacity. It will complement the related ACER reports and opinions.

text: (11) As the NRA reports on congestion income published pursuant to point 6.5 of Annex (I) of

text: Regulation (EC) 714/2009

text: were fragmented and different across Members States, standardised information from NRAs would be instrumental to ensure that ACER has the information it needs to carry out its task.

text: (12) The NRAs’ assessment stipulated in

text: Article 19(3) of Regulation (EU) 2019/943

text: of the adequate fulfilment of the objectives set out in Article 19(2) of the same Regulation depends on the observed time-window and the assessment is affected by the uncertainties of the future needs of new interconnection capacity. Therefore, this assessment can be performed in different ways, and in order to promote consistent implementation among the NRAs, ACER provides the present recommendation,

text: HAS ADOPTED THIS RECOMMENDATION:

text: ACER recommends National Regulatory Authorities (NRAs) to provide their reports pursuant to

text: according to the template of section 1 below, and (if applicable) submit a multi-year estimate of indicative amounts to be spent on cost categories of Article 3(1) of the UCI Methodology according to section 2 below.

text: ACER recommends NRAs to assess the adequate fulfilment of priority objectives set by

text: Article 19(2) of Regulation (EU) 2019/943

text: (hereafter “Priority Objectives”) according to section 3 below.

text: Note: The NRAs will be free to redact data, and send two versions of the report to ACER in case business secrets do not allow them to publish the full report.

text: 1.1. In order to both facilitate the NRAs’ reporting task pursuant to

text: , and to streamline the ACER’s monitoring activity, ACER recommends that the NRA’s report pursuant to

text: Article 19(5)

text: includes the following elements:

text: Inputs

text: a) Amount of congestion income (CI) collected within the reporting period at Member State-Member State borders or between internal Bidding Zones of a Member State, i.e. CI before the firmness compensation costs and before the remuneration of nonnominated long-term physical or financial transmission rights; b) Amount stored in a separate internal account line at the beginning of the reporting period; c) Adjustments of congestion income of previous years due to provisional data.

text: Expenditures and carry-over

text: d) Amount of congestion income used for Priority Objectives within the reporting period; e) Amount of congestion income not used within the reporting period and placed in a separate internal account line (at the end of the reporting period); f) Amount of congestion income used for tariff reduction; If congestion income is used for tariff reduction, verification of compliance with

text: Regulation (EU) 2019/943

text: (assessment of adequate fulfilment of Priority Objectives); g) Surplus CI spent for electricity customers support pursuant to

text: article 9 of Council Regulation (EU) 2022/1854

text: ; h) Taxes on CI saved in the separate account, in countries where taxation is foreseen.

text: Additional information

text: i) Amount of congestion income within the reporting period per border; j) Congestion income used for each of the nine cost categories defined by Article 3(1) of the UCI Methodology; k) When expenditures are related to projects which increased or will increase cross zonal capacities (i.e. expenditures for cost category vii and vi of Article 3(1) of the UCI Methodology, respectively), the following project-related information;  the project name and code ;  the yearly expenditure recovered from congestion income;  in case the projects were / are not included in the EU TYNDP, the justification of their relevance with the Priority Objectives, in line with paragraph 1.2 below.

text: 1.2. The relevance of a project with the Priority Objectives is justified by the ways foreseen in article 4.3 of the UCI Methodology, or in case where the project is marked as “critical network element” in the implementation of the Flow Based Allocation Methodology.

text: 1.3. If (e) above is not zero, the NRA report should include a multi-year estimate (MYE) with the content described in section 2 below. A MYE may also be submitted in case an NRA intends to use CI for network tariffs and wishes to facilitate NRA’s assessment of the fulfilment of the Priority Objectives.

text: 1.4. If (f) above is not zero, the NRA report should include the assessment of adequate fulfilment of Priority Objectives, according to the criterion of section 3 below.

text: 1.5. ACER recommends NRAs to submit the above information to ACER in electronic format (according to the template of Annex II to this Recommendation in the application made available by ACER).

text: 2.1. In case congestion income is placed in a separate internal account line, the TSOs shall include in their communication to their NRA a multi-year estimate (MYE) of indicative CI amounts for the cost categories for which the separate account line will be used in the future. The MYE can be revised whenever deemed necessary by the competent NRA.

text: 2.2. If according to the MYE, CI is foreseen to be used for the cost category (vi) of article 3.1 of the UCI Methodology, ACER recommends that NRAs include in their reports, for each relevant project, as specified in recital 2.3 below, an indicative spending estimation for every year until its commissioning.

text: 2.3. For the purpose of recital 2.2, a project which significantly contributes to maintaining or increasing cross-zonal capacity is defined as a “relevant project” if it is included in the PCI list or its indicative total capital expenditure estimation exceeds: - 100 million euro for a Member State where the average transmission capital expenditure in the previous three years was above 1000 million euros; - 50 million euro for a Member State where the average transmission capital expenditure in the previous three years was in the range 500-1000 million euros; - 25 million euro for a Member State where the average transmission capital expenditure in the previous three years was less than 500 million euros.

text: 2.4. Revisions of the yearly spending estimation for the cost category (vi) of article 3.1 of the UCI Methodology should be explained in the following cases: - In case any of the yearly estimates significantly diverge from the corresponding estimate of the previous year (>+20% or <-20%); - In case of consecutive changes to the yearly estimates which amount for more than 20% of the initial estimate.

text: 3. Criterion of assessment of adequate fulfilment of Priority Objectives

text: 3.1. If the CI of the previous year is intended to be fully or partly used when calculating the network tariffs, the NRA shall assess the adequate fulfilment of Priority Objectives. 3.2. ACER recommends that in this case, a MYE, as described in section 2 above, accompanies the NRA’s report on the use of CI. 3.3. In the cases where a MYE was defined, ACER recommends that:

text: a. NRAs calculate the difference: CI collected in the previous year minus the actual total spending for categories (i) to (v) and (viii) to (ix) of article 3.1 of the UCI Methodology [hereafter “CI available for infrastructure spending”]; b. if the CI available for infrastructure spending is equal or greater than the sum of the yearly targets set in the latest multi-year estimate for categories (vi) and (vii) of article 3.1 of the UCI Methodology, then the priority objectives can be considered fulfilled if the yearly targets set in the latest multi-year estimate for categories (vi) and (vii) are met; c. if the CI available for infrastructure spending is less than the sum of the yearly targets set in the latest multi-year estimate for category (vi) and (vii) of article 3.1 of the UCI Methodology, then the priority objectives can be considered fulfilled if the actual spending on projects of categories (vi) and (vii) is equal or greater than the CI available for infrastructure spending.

text: This Recommendation is addressed to National Regulatory Authorities.

text: Done at Ljubljana, on 20 December 2022.

text: - SIGNED -

text: Fоr the Agency The Director

text: C. ZINGLERSEN

text: Annex I: Overview of the procedural steps according to the UCI Methodology

text: 1.1 TSO’s proposal on the use of CI for the next calendar year(s)

text: Actor: TSOs Content of the action: TSOs shall communicate to their NRA the elements included in article 4.1 of the UCI Methodology regarding the following calendar year(s)

text: Time of action: by 31 October (unless an earlier date is decided by the competent NRA) annually or biennially (to be decided by the competent NRA).

text: 1.2. NRA’s decision on the use of CI for the next calendar year(s)

text: Actor: NRA Content of the action: According to point 4.7 of the UCI Methodology, each NRA shall decide: - for which of the cost categories (i) to (ix) of Article 3(1) of the UCI Methodology the TSO shall use congestion income in the upcoming period (one or two years); - on the relevance of the cost categories communicated by the TSO to the priority objectives; - if a separate internal account line was and/or is to be used, on the multi-year estimate for the separate internal account line and for which of the cost categories (i) to (ix) of Article 3(1) of the UCI Methodology the TSO shall place congestion income in the separate internal account line.

text: Indicative time of action: by 31 December

text: 1.3 TSO’s communication on the actual use of CI during the previous calendar year

text: Actor: TSOs Content of the action: TSOs shall communicate to their NRA any of the information set out in Section 1 of this Recommendation, as requested by the NRA.

text: Time of action: at the beginning of each year (unless a different date is decided by the NRA).

text: 1.4. NRA’s report on the use of CI for the previous calendar year

text: Actor: NRA Content of the action: the NRA shall publish and submit to ACER a report on the use of CI for the previous calendar year. ACER recommends that the NRA report provides information, according to the Template described in section 1 herein.

text: Time of action: by 1 March

text: Clarifications on the action: If CI of the previous year is intended to be fully or partly used when calculating the network tariffs, the NRA has to assess whether the priority objectives (a) and (b) of

text: Article 19 (2) of Regulation (EU) 2019/943

text: were adequately fulfilled. ACER recommends NRAs to perform this assessment according to the criterion described in section 3 herein.

text: Annex II: CI templates

text: CI overview

text: Total available congestion income 0 B

text: Expenditures and carry-over

text: d) Amount of congestion income used within the reporting period for priority objectives set by Article 19(2) of Regulation 2019/943 X C e) Amount of congestion income not used in the previous year and placed in a separate internal account line (at the end of the reporting period) X f) Amount of congestion income used for tariff reduction X g) Surplus CI spent for electricity customers support pursuant to

text: on an emergency intervention to address high energy prices X h) Taxes on saved CI, in countries where taxation on the amounts saved in the separate account is foreseen pursuant to national laws X

text: Sum of expenditure and carry-over of CI 0 D

text: Additional information

text: i) Amount of congestion income in the previous year for border X-Z X i) Amount of congestion income in the previous year for border X-Y X i) Amount of congestion income in the previous year for border X-W X

text: Sum of CI of previous year 0 E

text: Cost categories CI (€) i X ii X iii X iv X v X vi X vii X viii X ix X Sum X F

text: k. CI project-related information

text: When previous year expenditures are recovered from congestion income and are related to projects which increased or will increase cross zonal capacities, the following project-related information should be provided:

text: Project expenditure Comments For projects non-included in the (***) recovered from t code EU TYNDP: justification of the t name (*) congestion income in ec relevance of the project with the ec the previous year priority objectives (**) Proj (€) Proj

text: l. (If applicable) Multi-year estimate -future spending per category

text: Indicative amounts to be spent for the cost categories defined by Article 3(1) of the UCI Methodology, for which the separate account line will be used in the future.

text: (*) up to the last year when the income in the separate account is planned to be used

text: m. (If applicable) Multi-year estimate -spending per project

text: In case there is projected spending on the cost categories (vi) and (vii) of article 3.1 of the UCI Methodology, the following project-related information should be provided:

text: Project expenditure

text: (*) the TYNDP code - if not available the NDP code