ACER publishes today its first Recommendation on inter-temporal cost allocation mechanisms for financing hydrogen infrastructure. To ensure the recommendation is well-informed, ACER conducted a public consultation on the topic in spring 2025.
What is inter-temporal cost allocation and why an ACER recommendation?
Developing a cost-efficient hydrogen network is key to achieving the EU’s climate goals, but it requires big upfront investments while future demand is still uncertain.
The EU Hydrogen and Decarbonised Gases Regulation (2024) allows network operators to recover infrastructure costs over time through inter-temporal cost allocation mechanisms. These aim to ensure a fair and balanced distribution of costs between early and future consumers, ensuring that the former are not disproportionately burdened.
ACER has been tasked with issuing a recommendation to guide the development and implementation of these mechanisms and support fair, long-term cost sharing as the hydrogen network develops.
What is in this ACER Recommendation?
ACER’s Recommendation identifies key investment risks in hydrogen infrastructure and offers high-level guidance on designing fair and effective inter-temporal cost allocation mechanisms. ACER also highlights the need for Member States to promptly establish clear hydrogen regulatory frameworks and develop flexible national rules.
What are the next steps?
ACER will review and update its Recommendation at least every two years, incorporating more refined guidance as the market evolves. The next publication is planned for 2027.
