ITC, Inter TSO Compensation mechanism


6 Νοε 2013 (πριν από 4 χρόνια και 8 μήνες)

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ITC, Inter TSO Compensation mechanism

TCMF 22 June 2006

Why we need to join

National Grid is required to comply with the Regulations

Regulation 1228/2003 allows for binding guidelines dealing
with a number of issues

Tariff Harmonisation

Congestion management

ITC scheme

ERGEG recently consulted on guidelines for an ITC

National Grid is required to join ITC when guidelines
become active

Proposed implementation date 1 January 2007

The proposed scheme

Three elements


Existing costs v’s LRAIC





Infrastructure principles

Improved ETSO scheme

Compensation cost reflective

MWkm impact

more accurate contributions

Removing payment for causing loop flows

Sensitivity factors for each combination

E.g. France to Portugal

effect on Spain

Compensation based on ‘reference exchanges’

Compensation and contribution calculated simultaneously

Minimum of 72 snapshots

Losses principles

Based on ‘with & without transits’


Calculate losses with transit

Calculate losses without transit

Multiply difference by a reference price

Calculated in isolation

Based on a minimum of 72 snapshots


Based on metered imports and exports


centrally calculated

Review charging methodology

Required to take account of regulation in ‘charges for
network access’

Consistency with ITC principles


Interconnector Owners charged on same basis as
generators and suppliers

Under ITC scheme

ITC provides compensation for transits

Need to review GB charges for transit

Not all imports and exports lead to transits

Initial proposal

Adjust the TNUoS charge for interconnected

Establish transit

Based on average hourly flow

Subtract from chargeable TEC

Subtract from chargeable demand

Additional rules for more than 2

CISG comment on proposals


Rules for sharing transit

How to manage January to March…

When to consult (ERGEG next meeting 5 Oct)

Not enough certainty to consult prior to this

European commission & comitology