TSO`s European companies have entered into a new voluntary agreement on inter-TSO compensation for transit (ITC). The agreement, signed by 39 GRTs from 33 countries, is an interim solution until the eu`s official guideline on ITC compensation comes into force at the end of 2010. It is essential that the compensation mechanism is implemented in 2010 to ensure adequate compensation for the costs of cross-border flows. In the absence of the necessary community guidelines, a voluntary agreement between TMRs is still needed for (at least) a few months in 2010. The current ITC agreement was concluded by ETSO`s predecessor and signed for 2008-2009. The new voluntary interim agreement became necessary as the current inter-TSO compensation agreement expired on December 31, 2009. At the same time, the EC guideline has not yet come into force. Like previous ITC agreements and draft EU guidelines, this agreement provides that perimeter flows (i.e. imports and exports from third countries) contribute to the WWT Framework Fund and calculations. The perimeter charge is 0.7 MWh for 2010.
TRM makes an appropriate contribution to the ITC fund on the basis of electricity flows within and outside their national transmission network. The 2020 perimeter levy has been set at 0.7 euros / MWh ENTSO-E to take into account the extent to which these charges are allowed, given their impact on the financing of transport capacity for EU countries. The ITC agreement provides for an annual procedure in which the parties must indicate and verify the values for the calculation of the annual perimeter fee. Based on these verified data, transit flows, including perimeter flows, are calculated (i.e. imports and exports of electricity to and from third countries), contributing to the WWT Framework Fund and calculations. ENTSO-E was established on 19 December 2008 and has been fully operational since July 2009. It replaces and consolidates its six predecessors, whose history dates back to 1951. The legal raison d`être of ENTSO-E is the third legislative package on the internal electricity market, which came into force on 3 September 2009.
The agreement stipulates that two elements must be compensated: transportation losses and infrastructure costs. As in the past, European transportation system managers compensate for transport losses using the WWT (With and Without Transit) model. This means that losses on the transport network of each EST are calculated in a load flow situation with transits and in a non-transit charge flow situation. LRM receives compensation for the absorption of cross-border electricity flows on their networks, including corresponding losses, by a compensation transfer fund (CCI) created and managed by the European Network of Electricity Transmission System Managers (ENTSOE), created in accordance with Article 5 of regulation (EC) No. 714/2009. The ITC framework is overseen by the Energy Regulators Cooperation Agency (ACER), established by Regulation (EC) 713/2009. The third package includes Regulation 714/2009 on the conditions for cross-border electricity exchange to the grid, which requires the establishment of the REGRSO-E, in order to „ensure optimal management of the electricity transmission network and to enable cross-border trade and cross-border supply of electricity in the Community“.