Two new reports mapping rules on information exchange, demand response and micro-production in the Nordic countries

NordREG publishes two reports made by the consultant THEMA on behalf of NordREG. One contains a survey of current Nordic national regulations for transmission operators (TSO) and distribution system operators (DSO) roles and responsibilities. The second report is a survey of current market design for demand response and micro-production.

The report: Mapping of TSO and DSO roles and responsibilities related to information exchange

Access to accurate and timely information is essential for customers as well as for electricity market participants. Information exchange is therefore a prioritized area for NordREG. NordREG has previously recommended that a national information point, hub, should be established as a step towards a smarter electricity market. National TSO:s has been appointed as the actor that should establish the national data hub which would mean that the TSO gets a new role as a market actor. NordREG therefore finds that the TSO:s role will change with the establishment of national data hubs. TSO:s in the Nordic region are; (DK), Fingrid (FIN), Statnett (NO) and Swedish kraftnät (SE).

The report “Mapping of TSO and DSO roles and responsibilities related to information exchange”, made by THEMA, describes that the Nordic countries generally have similar rules for the electricity market. This also applies to rights and obligations of market participants in the information exchange. The DSO:s in all countries are responsible for most functions when it comes to measuring and exchange of information. Most Nordic countries are in a transition from bilateral contacts between the stakeholders towards national data hubs. The Danish hub is already in operation and the Norwegian hub is expected to begin to operate in 2016 and be fully deployed in 2019. In Finland, the responsibility for development of a hub has been given to the TSO, Fingrid. Ei has proposed that Sweden also should have a hub and that it should be run by TSO, Svenska kraftnät.

NordREG notes that the consultant, THEMA, made a good report with useful information on existing national regulatory frameworks. NordREG also notes that there is currently no reason to develop common Nordic recommendations in addition to the work previously done by NordREG concerning, for example, switching and moving processes. However, it is important that the NRA:s in NordREG continue to exchange information and experiences from the ongoing national work of creating data hubs, and continues to closely follow the work of the TSO:s.

The report: Rules and regulation for demand response and micro-production

Nordic customers are today relatively active in the electricity market by actively choosing electricity contracts but also by taking advantage of the opportunity for flexible use of electricity that smart meters provide. Customers can also choose to be active by generating their own electricity by becoming so-called micro-producers. It is important to have suitable national regulations and NordREG therefore examined how the national Nordic regulations are designed for these two areas.

In the report, “Rules and regulation for demand response and micro-production”, made by THEMA, states that smart meters already are installed in Sweden and Finland, while the roll-out of smart meters is expected to be completed in 2019 in Norway and 2020 in Denmark. The functional requirements set for the smart metering system is similar in Denmark, Finland and Norway. The requirements include hourly metering and daily reporting of measured values as well as an open interface that enables the customer to get instant access to data. Installation of in home displays is not mandatory in any of the Nordic countries, but the functional requirements in Denmark, Finland and Norway permit the installment of these. Sweden has since 2009 requirements for monthly metering and from 2012 all customers can have hourly metering .The customer is entitled to hourly metering if the customer has a contract with their electricity that requires hourly metering. The Swedish NRA, Ei, suggested that the functional demands should be changed so that the same functional requirements can be placed on the Swedish electricity meters as in the other Nordic countries. It is noted that there are no regulations that specifically handles third-party access to data. Typically, the client provides a power of attorney to a supplier or an energy service company which gives the company the same access to information that the customer has.

The report notes that the network tariffs design not specifically regulated in order to promote demand flexibility, however, indicates all countries regulations that network tariffs must be transparent, fair and non-discriminatory. The report also shows that micro production is separated from other production and incentives to become micro producers are generally the same with reduced or no network charges, excluding taxes and levies and simplified network connection procedure.

NordREG notes that the consultant, THEMA, made a good report with useful a summary of the current national regulations. NordREG also notes that there is currently no reason for NordREG to develop Nordic recommendations in addition to the work previously made, for example, requirements for smart meters.