Consultation on proposals for Nordic aFRR capacity market and cross-zonal capacity allocation methodology

The Nordic national regulatory authorities (“Nordic NRAs”) are launching a consultation on the legal proposals submitted from the Nordic TSOs on:

All TSOs’ of CCR Nordic proposal for a methodology for a market-based allocation process of cross-zonal capacity for the exchange of balancing capacity in accordance with Article 41(1) of the Commission Regulation (EU) 2017/2195 of 23 November 2017 establishing a guideline on electricity balancing

Energinet, Fingrid, Statnett and Svenska kraftnät proposal in accordance with Article 33(1) and Article 38(1) of the Commission Regulation (EU) 2017/2195 of 23 November 2017 establishing a guideline on electricity balancing

The Nordic NRAs also ask for stakeholder input on the request for an exemption of transfer of bids:

Energinet, Fingrid, Statnett and Svenska kraftnät proposal for exemption for not allowing balance service providers to transfer their obligations to provide aFFR capacity in accordance with Article 34(1) of the Commission Regulation (EU) 2017/2195 of 23 November 2017 establishing a guideline on electricity balancing

The Nordic NRAs will assess and evaluate the proposals for approval within a period of 6 months or request changes to the proposals before the proposals can be approved.

The Nordic NRAs welcome written input on the proposals and the exemption at the latest 3 June 2019. Comments shall be sent to post@forsyningstilsynet.dk with copy to pco@forsyningstilsynet.dk.

Please mark your answers to the consultation with the following reference: Proposals for Nordic aFRR capacity market and cross-zonal capacity allocation.

Contact persons in NordREG

Peter Christian Olsen, DUR
pco@forsyningstilsynet.dk

Elin Larsson, Ei
elin.larsson@ei.se

Jarno Lamponen, EV
Jarno.Lamponen@energiavirasto.fi

Stian Henriksen, NVE
sthe@nve.no

6 May 2019

NordREG follow-up meeting on Cross Border Capacities June 12th 2019 in Copenhagen

NordREG would like to invite stakeholders and all other interested parties to a follow-up meeting on cross border capacities in the Nordic region. The meeting will be held on the 12th of June 2019 at the Danish Utility Regulators offices in Copenhagen.

The meeting is arranged by NordREG as a follow-up to the meeting 25th of October 2018 in Stockholm on the joint Nordic initiative of monitoring and increased transparency of cross border capacities and practical capacity calculation.

Main topics

  • Current capacity calculation practice
    • Mitigating measures/initiatives to reduce reductions in cross-border capacities due to the Swedish West-coast cut (Svenska Kraftnät).
    • Illogical cross-border flows.
  • Flow based– the capacity calculation methodology for the future.
  • TSOs presentation of a new format Quarterly Capacity Report.

The final agenda will be published before the meeting.

Target group: Stakeholders and other participants participating in the meeting 25th of October 2018 and other interested parties

When: 12th of June 2019 09:30 – 15:30

Where: Danish Utility Regulators offices, Carl Jacobsens Vej 35, 2500 Valby Copenhagen

Admission: Free

Registration

Please sign up for the meeting before 31st of May 2019 by e-mail with full name, organization and advise us on any dietary requirements you may have to nordregsecretariat@forsyningstilsynet.dk

25 April 2019

Nordic regulators urge the Nordic TSOs to continue to strive to avoid delays in the implementation of the 15 minute imbalance settlement period in the Nordics

The Nordic energy regulators take note of a high risk of a delay in the implementation of the 15 minute imbalance settlement period in the Nordics, and urge the TSOs to continue to strive to avoid delays and to present an ambitious and realistic implementation plan as soon as possible.

On the 14 of March 2019, the Nordic Transmission System Operators (TSO) issued a joint press release on the implementation of the 15 minutes imbalance settlement period, part of the so-called Nordic Balancing Model (NBM).

The press release reads that there is a high risk of delay in implementing a 15 minutes imbalance settlement period (ISP) by December 2020.  Moreover, the Nordic TSOs commit themselves to an enhanced stakeholder involvement in the NBM implementation.

The Nordic energy regulators welcome the commitment by the Nordic TSOs to enhance stakeholder involvement in the NBM implementation, i.a. through a Nordic TSO stakeholder workshop in April.

The Nordic energy regulators support a 15 minutes ISP, as it is a key factor in enabling a more efficient system operation, an efficient integration of renewables and a closer market integration with the rest of Europe.

The Nordic energy regulators issued a press release to this effect on 19 December 2018 expecting a coordinated move to 15 minutes ISP by 18 December 2020 and highlighting the close dialogue between the regulators and the Nordic TSOs to meet this ambition.

The Nordic energy regulators note that the Nordic TSOs now see a high risk of a delay in meeting the 18 December 2020 deadline for a 15 minutes ISP. The deadline stems from the EU Regulation 2017/2195 establishing a guideline on electricity balancing (EBGL).

A delay in the implementation of 15 minute ISP is subject to a formal procedure set in the EBGL for both TSOs and NRAs to follow if TSOs, either jointly or individually, would request a regulatory approval of a delay. The Nordic energy regulators underline the importance of a coordinated and joint Nordic implementation of 15 minute ISP. So far, the Nordic TSOs have not filed a request.

The Nordic energy regulators urge the Nordic TSOs to continue to strive for implementing the ISP without extending the deadline and to present an ambitions and realistic implementation plan as soon as possible. The Nordic energy regulators encourage the Nordic TSOs to consult with stakeholders and thus to draw on their insight when drafting such an implementation plan; the implementation will not least affect stakeholders in terms of investments, IT-development etc.

The Nordic energy regulators thus will continue the close dialogue with the Nordic TSOs on a coordinated implementation of a 15 minutes ISP, as delays or lack of coordination might diminish the benefits of the 15 minutes ISP.

Background

The requirement to implement the 15 minutes ISP stems from EBGL article 53.

EBGL article 62 sets out the conditions to derogate from the deadline in article 53.

Contact

NVE – Stian Henriksen (sthe@nve.no)

EV – Jarno Lamponen (Jarno.Lamponen@energiavirasto.fi)

Ei – Elin Larsson (elin.larsson@ei.se)

DUR – Peter Christian Olsen (pco@forsyningstilsynet.dk)

 

3 April 2019

Consultation on proposal for Clearing and Settlement Arrangements in the Nordic region by the Nord Pool Group, Nasdaq AS/ Nasdaq AB and EPEX/ECC

This consultation concerns a joint proposal from the nominated electricity market operators in the Nordic region on clearing and settlement arrangements according to Article77 (2) of the Commission Regulation (EU) No 2015/1222 of 24 July 2015 establishing a Guideline on Capacity Allocation and Congestion Management (CACM).

NordREG welcomes written input on the proposal before the 22nd of March 2019. Comments (in English) can be sent to registrator@ei.se. Please mark your answers to the consultation with the following reference number 2018-101724.

Contact persons in NordREG

Linda Weman Tell, Ei
linda.weman.tell@ei.se

Malene Alempiew, DUR
mua@forsyningstilsynet.dk

Mari Salo, EV
mari.salo@energiavirasto.fi

Helena Lindstad Mellison, NVE
hem@nve.no

8 March 2019

Consultation on the methodology for capacity calculation in the long-term timeframe

The Nordic national regulatory authorities (“Nordic NRAs”) are launching a consultation on the methodology for capacity calculation in the long-term timeframe developed by all TSOs in the Nordic capacity calculation region in accordance with Article 10 of Commission Regulation (EU) 2016/1719 of 26 September 2016 establishing a guideline forward capacity allocation (“FCA Regulation”).

The Nordic NRAs will assess and evaluate the proposal for approval within a period of 6 months or request changes to the proposal before the proposal can be approved.

The Nordic NRAs welcome written input on the methodology at the latest 18th of February 2019. Comments shall be sent to post@forsyningstilsynet.dk with copy to slrs@forsyningstilsynet.dk. Please mark your answers to the consultation with the following reference: Nordic Capacity Calculation Methodology.

Contact persons in NordREG:

Toril Naustvoll, NVE
tna@nve.no

Jori Säntti, EV
jori.santti@energiavirasto.fi

Daniel Frisö, Ei
daniel.friso@ei.se

Søren Lorenz Søndergaard, DUR
slrs@forsyningstilsynet.dk

21 January 2019

The Nordic energy regulators expect a move to a 15 minutes imbalance settlement period by 18 December 2020

The Nordic energy regulators supports the move to a 15 minutes ISP, as it amongst others is expected to enable a more efficient system operation, efficient integration of renewables and a closer market integration with the rest of Europe. The Nordic NRAs expect a coordinated move to 15 minutes ISP by 18 December 2020 and are in close dialogue with the Nordic TSOs to meet this ambition.

EU Regulation 2017/2195 establishing a guideline on electricity balancing (EBGL) requires a move from the current 60 minutes imbalance settlement period (ISP) to 15 minutes ISP by 18 December 2020. A National Regulatory Authority (NRA) can decide to derogate the implementation of the 15 minutes ISP until 2025, either at its own initiative or upon request by a Transmission System Operator (TSO).

The Nordic NRAs (Danish Utility Regulator, the Finnish Energy Authority, the Norwegian Water Resources and Energy Directorate, and the Swedish Energy Markets Inspectorate) have so far not received a request for a derogation from their respective TSOs. Further, the Nordic NRAs have at this point in time not identified any decisive reasons to derogate and to delay the implementation of the 15 minute ISP later than 18 December 2020.

The Nordic NRAs are in close dialogue with the Nordic TSOs, with a view to identify and handle any national or regional challenges in order to meet the ambition of a coordinated implementation of a 15 minutes ISP by 18 December 2020.

Background

The requirement to implement the 15 minutes ISP stems from EBGL article 53.

EBGL article 62 sets out the conditions to derogate from the deadline in article 53.

Contact

NVE – Henriksen Stian (sthe@nve.no)

EV – Lamponen Jarno (Jarno.Lamponen@energiavirasto.fi)

Ei – Erik Blomqvist (erik.blomqvist@ei.se)

DUR – Peter Christian Olsen (PCO@forsyningstilsynet.dk)

19 December 2018

Monitoring of Nordic Retail Markets discussed at workshop in Oslo

24 October 2018 Nordic national regulaors (NRAs) met in Oslo to discuss monitoring of the Nordic retail markets. National cases were presented, and the overall conclusion was that NRAs faces similar challenges and therefore can benefit from sharing experience with each other.

This was the second annual workshop arranged by NordREG´s Retail Market Working Group (RMWG). Based on the discussions at the workshop RMWG today has published the following conclusions:

Independent price comparison tools

In all the Nordic countries there are new functions added to the NRAs price comparison tools (PCTs). The added functionality has the purpose to make it easier for consumers to be well informed and make better choices when choosing an electricity price contract. Examples of functionality is warning signs on suppliers, hourly price contracts, integration between PCT and datahub, filter to stop introduction offers.

  • It is important that NordREG exchange information regarding PCTs and coordinates new functionalities more effectively, so all Nordic consumers can make better choices.

Suppliers with cross-border activities

Business practices by one supplier´s different subsidiaries are a problem in Sweden, Norway and Finland. The NRAs often monitor their activities due to many customer complaints.

  • It is important that NordREG exchange experience in order to map activities for suppliers with many complaints that also have cross-border activities.

Unbundling

Customers often have a problem separating the DSO from the integrated supplier. In Denmark and Norway companies are obligated to change name of one of the companies so that they are clearly seen as separate companies.

  • All NordREG NRAs should consider activities that promotes unbundling and coordinate similar activities within the Nordic region.

Information on the bill

When adding information to the customer’s bill one must consider that to much information will make the customer disregard all the information due to overload. In Finland some mandatory information has been removed to address this problem.

  • When the Clean Energy Package is implemented NordREG should discuss how mandatory information on bills could be handled. In this discussion the result from the Customer Survey 2018 should also be considered.

Spot-based price contracts

When thinking of spot-based product it’s easy to think price contracts based on hourly prices on NordPool. But there are other products that use weighted average monthly price that is calculated by multiplying a load profile with the corresponding hourly prices from NordPool.

  • NordREG should discuss if it is possible to find a joint definition of what a dynamic price contract is.

Bundled products

In both Denmark and Norway, it’s common for electricity suppliers to sell bundled products with offers including for example mobile phone contracts, discounts, online help with homework.

  • The Nordic NRAs should follow the development of bundled products in each of the Nordic retail markets.

New ways of monitoring market efficiency

By developing new market indicators, the NRAs can keep track on the market more effectively and give better recommendations on legislative changes.

  • NordREG should discuss and investigate if NVE´s work 2018 on measuring market efficiency could be used as a template for best practice in the Nordic region?

17 December 2018

Finnish electricity customers are the most active

A survey recently conducted in the Nordic countries shows that most household customers know that they can switch electricity supplier. At the same time, the survey shows that many customers are inactive. The main reason for inactivity is often that the saving potential is considered too small.

Below are some of the findings from the web survey conducted in September 2018 among a representative sample of 6,000 Nordic electricity customers; 1,500 respondents from Denmark, Finland, Norway and Sweden. All respondents participate in the decision-making regarding the electricity contract in their household.

The survey shows that 26 per cent of electricity customers have been active and signed an electricity contract in the past year. On top of that, 16 per cent have compared contracts in the past year without switching and are so-called aware customers. 58 per cent have neither switched nor compared contracts in the past year or more, and are, hence, considered ‘inactive’ customers.

The share of active customers is highest in Finland. Norway and Finland have the highest shares of aware customers. The Danish customers are the most inactive ones.

Amongst those that have neither signed nor compared electricity contracts the last year (so-called inactive customers), the most common reasons given for not switching/comparing are satisfaction with current contract and small financial gains.

All in all, Danish customers differ from the other Nordic customers. They use less electricity; have a lower level of activity in the electricity market; have less knowledge both of terms of contracts, the market players and price comparison tools; they also have less confidence in the electricity market. Finnish and Swedish customers are similar when it comes to consumption, activity level and reasons for (not) switching/comparing contracts. Norwegian customers stand out, with a much higher consumption of electricity, compared to others. In addition, Norwegian customers find the switching process somewhat easier than the other customers in the survey.

Active customers spend the least on electricity, have the best knowledge of the electricity market and find it the easiest to switch contracts. In addition, they regularly compare contracts. Inactive customers are characterized not only by rarely switching and comparing contracts, but also by knowing the least about their electricity consumption.  They have the poorest knowledge of the electricity market as such, as well as their own terms of contract, are the ones that read the least of the information on their bill compared to the rest of the respondents and find it most difficult to switch contracts.

When it comes to gender and age differences, these can be summed up as follows. Men are somewhat more active electricity customers than women; they more often compare contracts, initiate new contracts themselves, know more about both the electricity market and their contractual terms, read more of the information on the bill and find the switching process easier. However, compared to men, women deem it more important to have a green contract, and prefer more strongly that they receive a combined bill rather than receiving two separate bills from their grid company and supplier. Younger electricity customers have the poorest knowledge of the electricity market and their own contractual terms, find it more difficult to sign contracts and are the ones that read the least of the information on their bill.

The Nordic energy regulators (NordREG) will now analyze the results of the survey and use it as one of many inputs when the retail markets in the Nordic region are developed further.

For more information please contact:

Mattias Johansson, Retail Market Expert at Energimarknadsinspektionen and Chair of NordREG Retail Market Working Group, +46 16 16 27 42
Søren Brandt Clausen, Forsyningstilsynet,+45 4171 5381
Patrick Malén, Legal Adviser at Energiavirasto, +358 5050 126
Stian Andre Staurvik Skaalbones, Adviser at Norges vassdrags- og energidirektorat, +47  22 95 90 29

Read the main report “Nordic Customer Survey 2018 – Consumer behavior in the Nordic electricity market”.

29 November 2018

NordREG meeting on Cross Border Capacities

NordREG would like to invite you to a meeting on the TSOs current practice of calculation of Cross Border Capacities in the Nordic region. The meeting is on the 25th of October 2018 at Stockholm Arlanda airport.

The meeting is arranged by NordREG in cooperation with the Nordic TSOs as an initiative towards a joint Nordic monitoring and increased transparency of cross border capacities by supplementing the existing reporting structures.

Main topics are:

  • Current capacity calculation practice, including explanations and justification
  • Increased transparency through additional reporting structures of TSOs calculated cross border capacities

NordREG invites stakeholders to present their view on the topic by presenting prepared messages in the introductory part of the meeting and by active participation in discussions.

Stakeholders that would like to present a prepared message are requested to announce that when they sign up for the meeting or at the latest by the 8th of October.

Target group: All interested parties.

When: the 25th of October 2018, 9:30–15:30.

Where: Radisson Blu Sky City Stockholm-Arlanda.

Admission: Free.

Registration: Please sign up for the meeting before October 15 through e-mail internationella@ei.se.

Please state full name, organization and advise us of any dietary requirements you may have.

Program: Agenda 25 October

Presentations

27 September 2018

Revised Memorandum of Understanding (MoU)

At the start of September the NordREG Board met to sign a revised Memorandum of understanding (MoU) and approve a new vision.
The first MoU on the cooperation between the Nordic national energy regulators was signed in 2002 and was last amended in 2006.

On the 4th of September 2018 the director generals of the Nordic NRA’s met in Stockholm to sign a revised MoU.

–  The signing of the MoU is an important step for the current ongoing deepened strategic work within NordREG, says Karin Tvingsjö, chair of NordREG’s Strategy group.

Together with the signing of the MoU a new vision was also approved by NordREG Board. The new NordREG vision is: Actively promoting efficient and advanced energy markets, for the benefit of consumers towards a decarbonized society.

The vision outlines the direction for the Nordic regulatory cooperation. NordREG’s logo has also been updated with the slogan NordREG – Power through cooperation.

24 September 2018