NordREG notes that the Danish Utility Regulator, Finnish Energy Authority and Swedish Energy Market Inspectorate will initiate enforcement procedures against Energinet, Fingrid and Svenska kraftnät for non-compliance with an ACER Decision on the establishment of a Nordic balancing capacity market.
On 5 August 2020, ACER adopted four decisions approving methodologies for the establishment of a Nordic balancing capacity market for frequency restoration reserves with automatic activation (aFRR). One of the methodologies (Annex I to ACER Decision 22/2020) contains an obligation for the TSOs to submit an amendment to the methodology. The Decision is addressed to the CCR Nordic TSOs, i.e. Energinet, Fingrid, and Svenska kraftnät.
The CCR Nordic TSOs have submitted a proposal for regulatory approval in July 2021 as a consequence of the methodology as approved by ACER.
The Nordic NRAs have assessed the proposal and find that the proposal has no legal content. In other words, the proposal does not contain any provision that amends the methodology that ACER approved in its decision.
Therefore, the Nordic NRAs cannot see how the TSOs’ proposal can be approved. Further, it can be argued that the TSOs have not complied with the methodology as approved by ACER.
Under EU law, the CCR Nordic NRAs have the duty to ensure the compliance with ACER decisions addressed to “their TSOs”.
The CCR Nordic NRAs have considered how to ensure such compliance and will take appropriate enforcement steps vis-à-vis their respective TSOs. The aim of these enforcement steps thus is to ensure that the TSOs comply with ACER’s Decision with the shortest delay possible.
The CCR Nordic NRAs will coordinate closely when taking these enforcement steps, involving NVE-RME informally in the process as has been the case in the assessment so far of the proposal submitted by the TSOs in July 2021.
The CCR Nordic NRAs are keeping ACER updated of the enforcements steps taken.
For more information, please contact:
Thomas vom Braucke
Danish Utility Regulator
Finnish Energy Authority
Swedish Energy Markets Inspectorate
Norwegian Energy Regulatory Authority