Itc Agreement Entsoe

The current ITC agreement was concluded by ETSO`s predecessor and signed for 2008-2009. The new voluntary interim agreement became necessary as the current inter-TSO compensation agreement expired on December 31, 2009. At the same time, the EC guideline has not yet come into force. Like previous ITC agreements and draft EU guidelines, this agreement provides that perimeter flows (i.e. imports and exports from third countries) contribute to the WWT Framework Fund and calculations. The perimeter charge is 0.7 MWh for 2010. The European companies of TSO have concluded a new voluntary agreement on inter-TSO compensation for transit (ITC). The agreement, signed by 39 GRTs from 33 countries, is an interim solution until the eu`s official guideline on ITC compensation comes into force at the end of 2010. It is essential that the compensation mechanism is implemented in 2010 to ensure adequate compensation for the costs of cross-border flows. In the absence of the necessary community guidelines, a voluntary agreement between TMRs is still needed for (at least) a few months in 2010. The ITC agreement provides for an annual procedure in which the parties must indicate and verify the values for the calculation of the annual perimeter fee. Based on these verified data, transit flows, including perimeter flows, are calculated (i.e.

imports and exports of electricity to and from third countries), contributing to the WWT Framework Fund and calculations. LRM receives compensation for the absorption of cross-border electricity flows on their networks, including corresponding losses, by a compensation transfer fund (CCI) created and managed by the European Network of Electricity Transmission System Managers (ENTSOE), created in accordance with Article 5 of regulation (EC) No. 714/2009. The ITC framework is overseen by the Energy Regulators Cooperation Agency (ACER), established by Regulation (EC) 713/2009. ENTSO-E was established on 19 December 2008 and has been fully operational since July 2009. It replaces and consolidates its six predecessors, whose history dates back to 1951. The legal raison d`ĂȘtre of ENTSO-E is the third legislative package on the internal electricity market, which came into force on 3 September 2009. The ITC mechanism operates under the conditions set out in the ITC agreement and compensates transport network managers for the costs of hosting transit flows (i.e. facilitating the transfer of power between two countries). This mechanism aims to encourage the absorption of cross-border flows and to facilitate the creation of a truly competitive pan-European electricity market.

The price used to calculate the value of transit losses is equal to the price used to offset losses by national tariffs. As a result, all parties to the ITC receive full compensation for losses incurred in their systems and attributable to transits.