ITC mechanism
13.11.2024
Question for written answer E-002509/2024
to the Commission
Rule 144
Günther Sidl (S&D)
The Commission guidelines in Regulation (EU) No 838/2010 established a mechanism by which to compensate transmission system operators for the costs of hosting cross-border flows of electricity. In addition to a mechanism to compensate for system losses, the European Network of Transmission System Operators for Electricity (ENTSO-E) set up an infrastructure compensation fund, known as the ITC mechanism, to which all participating transmission system operators must contribute proportionately. In return, they receive money from the compensation fund, depending on the extent to which they are affected by international transit flows.
The 2010 guidelines temporarily capped this fund at EUR 100 million, and this ceiling was to be adjusted once the Agency for the Co-operation of Energy Regulators (ACER) had carried out an assessment. ACER presented its assessment report in 2013. However, despite growing challenges relating to the need to expand the electricity transit network, the ITC mechanism remains at EUR 100 million.
This is worrying in view of the increasing transit needs of the single European electricity market and the associated requirements (crucially the 70 % target), as it means national grid users are forced to shoulder the network costs arising from international transit, thereby undermining the ‘polluter pays’ goal.
- 1.Is an adjustment to the ITC mechanism in the pipeline?
- 2.What specific steps are to be taken to ensure that costs are borne by the polluter?
- 3.Are there any other plans for transit costs to be internationally distributed according to actual use?
Submitted: 13.11.2024