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ETSO agrees inter-TSO compensation scheme for 2007

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).

The European Transmission System Operators (ETSO) has stated that European TSO companies have reached a new agreement on a voluntary compensation scheme covering the period April to December 2007. The agreement was signed by TSOs from the majority of EU Member States and a number of non-member countries. However, the Czech Republic and Slovakia (signatories of previous agreements) did not sign this time. Latvia, Lithuania, Ireland and the UK remain outside the voluntary scheme.

Frontier (London and Cologne) and engineering consultants Consentec have been advising the European Commission on appropriate cost levels for use in an enduring, mandatory scheme.