EU Commission consults on payments between electricity system operators
The European electricity transmission system operators (TSOs) maintain a regime of transfer payments. These transfer payments are aimed at compensating TSOs who host physical power flows for which they do not receive direct payments from network users either for entering or exiting the system (i.e. those caused by users in other countries).
To date the scheme has been voluntary. A recent EU regulation (EC 1228/2003) required a review of these arrangements and the development of a set of guidelines for an enduring scheme.
Frontier Economics and engineering consultants Consentec have advised the European Commission on alternative mechanisms for determining compensation compensation payments and the advisers' report has now been released by the EU Commission.
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