comments on guidelines on transmission tariffs general etso welcomes the new draft as positive step...

Comments on Guidelines on Transmission Tariffs

GeneralGeneral

ETSO welcomes the new draft as positive stepETSO welcomes the new draft as positive step

– There are many important improvements to the previous There are many important improvements to the previous version. version.

– ETSO agrees that main improvements have already been ETSO agrees that main improvements have already been made, since the transmission tariffs in Member States reflect made, since the transmission tariffs in Member States reflect most of the requirements of the Regulation, being point of most of the requirements of the Regulation, being point of connection tariff system rather than being distance based. connection tariff system rather than being distance based. Also, the abolishment of export, import and transit fees Also, the abolishment of export, import and transit fees contributes to this objective contributes to this objective

– This proposal to harmonise the ‘G’ charge is realistic, avoiding This proposal to harmonise the ‘G’ charge is realistic, avoiding dramatic changes to the tariffs in short termdramatic changes to the tariffs in short term


Definition of G to be harmonized comparing Definition of G to be harmonized comparing absolute valuesabsolute values

ETSO welcomes in particular the proposal to consider harmonisation of ETSO welcomes in particular the proposal to consider harmonisation of the ‘G’ charge in absolute values and not relative shares of ‘G’ and the ‘G’ charge in absolute values and not relative shares of ‘G’ and ‘L’. ‘L’.

ETSO proposes to improve the definition of G:ETSO proposes to improve the definition of G:

ETSO considers that all generators, not only those connected to the ETSO considers that all generators, not only those connected to the transmission network, would have to be affected by the Guidelines. transmission network, would have to be affected by the Guidelines. ETSO proposes that the Guidelines are clarified to cover all ETSO proposes that the Guidelines are clarified to cover all generators and therefore that charges paid by all generators as generators and therefore that charges paid by all generators as well as the full amount of energy produced by them should be well as the full amount of energy produced by them should be taken into account when calculating the “average national G”. taken into account when calculating the “average national G”.


Definition of Average GDefinition of Average G

This doesn’t mean that there can’t be any differentiation of This doesn’t mean that there can’t be any differentiation of tariffs between generators connected to different voltage tariffs between generators connected to different voltage levels, based on their different use of the grid.levels, based on their different use of the grid.

Another reason to apply the above approach is that it is difficult Another reason to apply the above approach is that it is difficult to regulate at European level using the concept “transmission to regulate at European level using the concept “transmission network” since it has a different definition in the Member network” since it has a different definition in the Member States. States.


Definition of Average GDefinition of Average G

ETSO agrees with the draft Guidelines that internal congestion ETSO agrees with the draft Guidelines that internal congestion costs, any specific charges related to first connection, losses costs, any specific charges related to first connection, losses and ancillary services should be excluded at this stage from the and ancillary services should be excluded at this stage from the “average national G” calculation.“average national G” calculation.

This means that not all charges to be paid by generators will be This means that not all charges to be paid by generators will be harmonized for the moment. We nevertheless consider those harmonized for the moment. We nevertheless consider those charges an important feature which affects payments to be charges an important feature which affects payments to be made by generators and which should be considered when made by generators and which should be considered when creating level playing field in the future. We support that the creating level playing field in the future. We support that the need for harmonization of tariff structures should be need for harmonization of tariff structures should be investigated in a later stage.investigated in a later stage.


Harmonization: RangesHarmonization: Ranges

ETSO agrees with the proposed ranges.ETSO agrees with the proposed ranges.

The range 0-0.5 €/MWh in Continental Europe (except Denmark The range 0-0.5 €/MWh in Continental Europe (except Denmark West) and the range 0.25- 0.7 €/MWh in the Nordel region can be West) and the range 0.25- 0.7 €/MWh in the Nordel region can be considered as a reasonably "level playing field" at this stage.considered as a reasonably "level playing field" at this stage.


Reporting and information of the marketReporting and information of the market

This draft guidelines enhance the necessity of reporting to This draft guidelines enhance the necessity of reporting to the European Commission by proposing annual information each the European Commission by proposing annual information each year before the end of July. This information about G is of course year before the end of July. This information about G is of course very important for the monitoring of the Electricity Internal Market.very important for the monitoring of the Electricity Internal Market.

This regular information is an opportunity for the European This regular information is an opportunity for the European Commission to reinforce transparency of the market by publishing Commission to reinforce transparency of the market by publishing an annual report on G based on the information supplied by an annual report on G based on the information supplied by regulators.regulators.

This higher transparency should also be a step towards a This higher transparency should also be a step towards a greater efficiency of the market. That is why ETSO proposes a fourth greater efficiency of the market. That is why ETSO proposes a fourth paragraph in the draft guidelinesparagraph in the draft guidelines


Paragraph proposedParagraph proposed

4 4 CommunicationCommunication

Each year, before the end of October, the European Each year, before the end of October, the European Commission will prepare a public report on G values in Members Commission will prepare a public report on G values in Members States that shall contain the information supplied yearly by States that shall contain the information supplied yearly by regulators. A first report will be published by 28 May 2006 detailing regulators. A first report will be published by 28 May 2006 detailing the charging structures reported by regulators before 28 February the charging structures reported by regulators before 28 February 2006”2006”

comments on guidelines on transmission tariffs general etso welcomes the new draft as positive step...

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