ACER published today its Recommendation on the treatment of electricity losses in the Inter-Transmission System Operator Compensation (ITC) mechanism.
The aim of the ITC mechanism is to compensate relevant grids operators for the costs incurred on national power systems for hosting cross-border flows of electricity (transits). Power losses happen with electricity’s transmission and they can give rise to significant costs.
ACER recommends:
- An increased number of snapshots to be used for the estimation of the relevant volume of losses;
- An ex-post reconciliation of the losses’ costs to better reflect what actually incurred; and
- To use data from the forward markets, where feasible, when estimating the ex-ante values of losses for the purpose of the ITC mechanism.
