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Today, ACER opens a public consultation to inform the drafting of its recommendation on the methodologies for setting the inter-temporal cost allocation.
What is it about?
Developing a European hydrogen market will require significant infrastructure investment to transport hydrogen from supply sites to end users. However, funding this infrastructure through traditional regulated tariffs (fees paid by network users) could result in extremely high fees for early users, making hydrogen less affordable and potentially discouraging further demand.
To address this, the Regulation on hydrogen and decarbonised gas market grants Member States the authority to allow hydrogen network operators to recover infrastructure costs over time through inter-temporal cost allocation mechanisms. These aim to ensure a fair distribution of costs between early and future hydrogen consumers, ensuring that the former are not disproportionately burdened.
What’s ACER’s role?
The EU’s Hydrogen and decarbonised gas market package (2024) extends the role of ACER to include new hydrogen-related tasks. One of these tasks requires ACER to issue a recommendation on the methodologies for setting the inter-temporal cost allocation by 5 August 2025 and update it at least every two years.
ACER’s recommendation will provide guidance to transmission system operators (TSOs), distribution system operators (DSOs), hydrogen network operators, and national regulatory authorities (NRAs) on how to develop and implement these mechanisms effectively.
Get involved!
Interested stakeholders can submit their views on the topic by 31 March 2025.
