Compensation of EU electricity transmission operators for cross-border flows
Given the integrated network of the European electricity network, producers and consumers in one country can cause flows of electricity on the transmission systems of other countries. As part of the move to a single market in electricity, interim arrangements between Transmission System Operators (TSOs) to compensate each other for the resulting costs were put in place some years ago - the European Commission now plan to improve these arrangements and place them on a formal footing.
Frontier (London and Cologne) and Consentec GmbH (Aachen) have been advising the Commission on the mechanisms to be used to identify which parties are responsible for causing such cross-border flows and how the cost of hosting such flows (in terms of electrical losses and the need for increased network investment) could be estimated. This work has involved close co-operation with European regulators and TSOs.
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