BALTIC ELECTRICITY MARKET MINIFORA Vilnius 23 November 2006

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BALTIC ELECTRICITY MARKET MINIFORAVilnius 23
November 2006

• Tasks of the summary of the IG discussion paper
  on the Baltic ITC mechanism
• Dace Bite
• Public Utilities Commission

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Elements of an organisational framework
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PRIORITIES

• The 1st priority topics
• Co-operation between network operators
  (including cross border issues and availability
  of transmission capacity)
• Access to grid and balancing rules
• Availability and control of information
• The 2nd priority topic
• Market development and harmonization of national
  legislation

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REGULATION on conditions for access to the
network for cross-border exchanges in electricity

• TSO should be compensated for costs incurred as a
  result of hosting cross-border flows of
  electricity on their networks by the operators of
  the TS from which cross-border flows originate
  and the systems where those flows end.
• Payments and receipts resulting from compensation
  between TSO should be taken into account when
  setting national network tariff

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Regulation

• Commission shell set the quidlines on ITC
• The regulatory authorities shall ensure
  compliance with Regulation and quidlines
• The regulatory authorities shall cooperate which
  each other and Commission to fulfil the aims of
  Regulation

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Process till now

• ERGEG proposed methods for ITC WWT (With and
  Without Transits) and AP (Average
  Participation) methods
• ETSO proposed IMICA (Improved Modelling for
  Infrastructure Cost Allocation) method
• ERGEG draft quidlines on ITC based on IMICA
  method
• No agreement between the Regulators regarding
  ERGEG quidlines

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Regulators TSO

• Regulators should express the viewpoint
  regarding ITC method (quidlines)
• The Regulators should present the interests of
  the country and the TSO
• Cooperation on ITC method between RegulatorsTSO
  Regulators should receive from TSO regular
  information on ITC payments, proposed methods,
  the TSOs viwpoint on the advantages and
  disadvantages of the specific method

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Working Paper stating the TSOs opinion on the
Baltic ITC mechanism

• The paper should cover the following questions
• Analysis of the proposed TSOs compensation
  mechanism models (IMICA, AP, WWT, combined model,
  other), stressing the possible impact on payments
  - more or less depending on model.
• The advantages and disadvantages of the methods.
• The conclusions should give a common approach
  that will be applicable for the Baltic countries.
• The conclusions of the paper will be the basis
  for the consultation process within ERGEG.

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• THANK YOU FOR ATTENTION
• Web page of PUC WWW.SPRK.GOV.LV