The Nordic Energy Regulators, i.e. The Danish Utility Regulator, Energimarknadsinspektionen and Energiavirasto, have made national decisions resulting in a postponement of implementing a 15-minutes imbalance settlement period (ISP15).
Decisions have been made after the Nordic TSO’s in Denmark, Sweden and Finland, i.e. Energinet, Svenska Kraftnät and Fingrid, had requested their respective regulators to decide on a postponement of the implementation of ISP15 to replace the current 60-minutes imbalance settlement period.
The regulators have decided to grant national derogations resulting in ISP15 being implemented on May 22nd 2023.
The requested date for ISP15 was proposed jointly by the Nordic TSOs (including the Norwegian TSO, Statnett).
The Nordic Energy Regulators have concluded in their respective national decisions, that there are conditions for granting a derogation, and that the jointly proposed date for ISP15 with certainty can be implemented timely in each country.
The regulators will closely monitor the joint Nordic progress and the implementation projects in each country, encouraging the Nordic TSOs to update market participants on the ongoing process and finalization hereof.
The Nordic Energy Regulators held a stakeholder meeting on cross-border capacities in the Nordic wholesale electricity markets on 4th of December via Microsoft Live Events. About 100 participants were registered and there were at least more than 50 persons online at the same time.
Presentations were about the status of the Nordic flow-based capacity calculation methodology implementation and current and expected cross-border capacities in Nordic region. In addition, there were presentations of the state of play of legal implementation of congestion management requirements and the status of NRAs’ approval processes.
At the webinar, there were presentations and representatives from the Agency for the Cooperation of Energy Regulators (ACER), the Nordic Transmission System Operators as well as the Nordic Energy Regulators.
Agenda 4th of December 2020
0.1 Welcome to the webinar 20201204
1.1. Opening remarks
2.1. CCM Approval and side letter
2.2. Approval of 15min ISP derogation requests
2.3. NordREG stakeholder Hedging opportunities
3.1. NorCap Project Presentation
4.1. ACER update on state of play – legal implementation of congestion management requirements
5.1. TSO view on the 70% implementation
5.2. TSOs update on cross-border capacities
6.1. WWC STH TSO NRA
7.1. Update on DK1 – DE capacities
9.1. Closing remarks
The Nordic Energy Regulators, NordREG, publishes the annual report for 2020. The report summarizes the cooperation between the Nordic regulatory authorities.
The year 2020 has been intense and despite covid-19 the cooperation has functioned well, and the regulatory authorities has completed the planned activities.
The focus area has been to implement EU-legislation for the retail market and continue to cooperate and create equal conditions on the Nordic electric market. NordREG has for example worked with the Nordic retail market, network regulation, and flexibility issues, which has a prominent role in the Clean Energy Package.
NordREG has had an important part to play in the coordination of the regulatory oversight of the new Nordic Balancing Model to ensure timely and efficient implementation in compliance with the legislation.
Nordic Energy Regulators face similar challenges with suppliers using unfair business practices. That was one of the conclusions from NordREG´s 3rd annual Monitoring Workshop where 20 experts from Denmark, Finland, Norway and Sweden exchanged experiences and ideas on how to monitor the retail markets more effectively.
Three topics were discussed at the workshop: how to handle suppliers that attract many complaints, new EU rules to protect small businesses and challenges related to independent comparison tools.
Better cooperation needed between public bodies
The Nordic Energy Regulators receive many complaints from customers about suppliers that use unfair business practices. Misleading information, use of dubious sales methods and unreasonable contractual terms are examples found in all Nordic markets. The problems are limited to relatively few suppliers, but the supplier´s activities have severe consequences for both individual customers and the overall trust in the market.
- Since the responsibility for consumer protection is split between several public bodies, a closer national cooperation is needed between the national NRA, Crime Authority, Tax Agency, Consumer Agency and other authorities with legal powers to protect customers. NordREG will map the situation and continue to exchange experience about monitoring unwanted market behavior.
New EU rules will strengthen non-household customers
New EU legislation that comes into force 2021 will strengthen non-household customers. This is needed, since especially small businesses in recent years have become targets for suppliers using unfair business practices. Rules for termination fees, more mandatory information on bills and access to effective out-of-court dispute settlement are examples of legal protection now introduced for non-household customers.
- NordREG should continue to follow how the rules in the new Electricity directive are implemented nationally with a special focus on monitoring rights for non-household customers.
Nordic independent comparison tools have a lot to learn from each other
All Nordic countries face similar challenges regarding their independent comparison tools. The tools must be adapted to new EU legislation, the quality of the data reported by suppliers has to be improved and new functionalities have to be developed to help consumers in their choices of both traditional and flexibility contracts.
- Given the limited resources that each of the Nordic energy regulators have for operating and developing their comparison tool, it is of great value that the Nordic countries continue to share experience and ideas to be able to provide Nordic customers with high-quality comparison tools.
The Nordic Energy Regulators invites stakeholders and other interested parties to attend a meeting on cross-border capacities in the Nordic wholesale electricity markets on 4 December at 9:30-13.00 CET.
Topics will be status of the Nordic flow-based capacity calculation methodology implementation and current and expected cross-border capacities in Nordic region. In addition, there will be presentations on the state of play of legal implementation of congestion management requirements and the status of NRAs’ approval processes.
Presentations will be held by the Agency for the Cooperation of Energy Regulators (ACER), the Nordic Transmission System Operators as well as the Nordic Energy Regulators.
The meeting is a continuation for the meeting held on 3 December 2019.
The meeting will be held as online meeting. A recording from the meeting will be published afterwards on the NordREG’s website.
The meeting is open for stakeholders and other interested parties. However, each participant should register by 30 November 2020 by sending an email to email@example.com
In registering please inform name, email address and organisation of the participants. Link to the online meeting will be sent to the registered participants by email few days before the meeting.
NordREG has developed a common methodology for the Nordic NRAs to perform their upcoming analyses of the cross-zonal hedging opportunities in line with Commission Regulation (EU) 2016/1719 of 26 September 2016 establishing a guideline on forward capacity allocation (FCA GL) article 30.
The regulators will use this methodology to assess whether there are sufficient hedging opportunities in the Nordic electricity market. If the hedging opportunities in two adjacent bidding zones are deemed insufficient, the regulators on each side of the bidding zone border must, in a coordinated manner, make decisions targeted at the TSO’s on each side to introduce long term transmission rights (LTTRs) or other measures to improve hedging opportunities.
The regulators will also launch consultations on their assessments and the hedging needs of market participants in accordance with FCA GL art. 30(3)(a) during winter 2020-2021 or early spring 2021.
The deadlines for national decisions on whether there are sufficient hedging opportunities, and coordinated decisions per bidding zone border on introducing LTTRs or not are in April 2021* .
*As Norway has not implemented the FCA GL in national legislation at this point, the deadline for Norwegian borders will depend on the implementation time.
In three years’ time it is estimated that all Nordic countries have data hubs that will facilitate wholesale and retail market processes. The successful implementation of data hubs and the ability to centralize the handling of market processes is a key factor for the Nordic retail market to work effectively.
The governments and regulators in all the Nordic countries have given the transmission system operators (TSOs) the responsibility to develop and operate the data hubs in each respective market. Today, data hubs are up and running in Denmark and Norway and under development in Finland and Sweden, with a scheduled start around February 2022 in Finland and, depending on the legislation, 2022/2023 in Sweden.
In this year´s report, NordREG concludes that none of the Nordic data hubs are integrated with the national comparison tool (CT), but end-users can access their hourly consumption data in Denmark and Norway. This will also be possible in Finland and Sweden.
NordREG believes that enabling customers to access actual consumption data when searching for a new electricity contracts can reduce the barrier to switch supplier. However, none of the Nordic TSO’s have found the need for this integration and has therefore not developed an interface for sharing data between data hub and CT.
In the report, the TSO’s from Denmark and Norway share valuable insights from implementing their data hubs, which could be useful in the work to implement the Finnish and Swedish data hubs. One of the main findings in Denmark and Norway is that it’s important to maintain close cooperation with the necessary regulatory authorities as well as with the market actors.
The Nordic national regulatory authorities (“Nordic NRAs”) are launching a consultation on the methodology for capacity calculation in the day-ahead and intraday timeframe developed by all TSOs in the Nordic capacity calculation region in accordance with Article 20(2) of Commission Regulation (EU) 2015/1222 of 24 July 2015 establishing a guideline on capacity allocation and congestion management (“CACM 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 29th June 2020.
Comments shall be sent to firstname.lastname@example.org with copy to email@example.com.
Please mark your answers to the consultation with the following reference: Nordic Capacity Calculation Methodology.
Contact persons in NordREG
Toril Naustvoll, NVE
Jori Säntti, EV
Kaj Forsberg, Ei
Søren Lorenz Søndergaard, DUR
NordREG has been preparing a common approach on how to perform the upcoming analysis of the cross-zonal hedging opportunities in line with Commission Regulation (EU) 2016/1719 of 26 September 2016 establishing a guideline on forward capacity allocation (FCA GL) article 30.
Below you will find a link to the draft methodology, based on which the regulators are planning to conduct the upcoming study. All Nordic market participants are hereby invited to comment on the draft “Methodology for assessment of the Nordic forward market”.
NordREG is especially interested in hearing the stakeholders views on how the approach could be improved to better analyse the hedging opportunities in the Nordic markets. The background for the assessment is in the requirements in FCA GL article 30. The previous assessment was conducted in 2016-2017, please see links below.
The end objective is for regulators to assess whether there are sufficient hedging opportunities in the Nordic electricity market. If the hedging opportunities in two adjacent bidding zones are deemed insufficient, the regulators on each side of the bidding zone border must, in a coordinated manner, make decisions targeted at the TSO’s on each side to introduce long term transmission rights (LTTRs) or other measures to improve hedging opportunities.
The timeline looks as follows:
- This current consultation on proposed evaluation method (May-June 2020).
- Internal regulator assessments and decision on way forward (summer 2020).
- Data collection, calculations, assessments and draft decisions. (the timeline and exact approach varies per country).
- Consultations on the assessments and the hedging needs of market participants according to FCA art. 30(3)(a) (circa winter 2020-2021).
- National decisions on whether there are sufficient hedging opportunities and coordinated decisions per bidding zone border on introducing LTTRs or not (deadline April 2021)*.
Last day for replies – 2 June 2020
Please send your views, comments, considerations etc. in writing to firstname.lastname@example.org with copy to email@example.com. Please mark your answers to the consultation with the following reference number 2020-100867.
Per default replies are public, but if you wish to be anonymous, please indicate this.
Deadline for replies: 2 June 2020 EOB.
*As Norway has not implemented the FCA GL in national legislation at this point, the deadline for Norwegian borders will depend on the implementation time.
Links to 2016-2017 documents
In July 2018 the Nordic Regulators approved the Flowbased Capacity Calculation Methodology (“flowbased”) for the Nordic Capacity Calculation Region (“CCR Nordic”) in accordance with Article 20(2) of Commission Regulation (EU) 2015/1222 of 24 July 2015 establishing a Guideline on Capacity Allocation and Congestion Management.
An important part of the legislation and of the flowbased methodology is that “the TSOs concerned shall test the new approach alongside the existing approach and involve market participants for at least six months”. To Nordic Regulators’ understanding, testing the flowbased alongside the existing approach implies to have market coupling results each day with flowbased capacity input alongside the market coupling results with the current capacity input. This is referred to in the CCR Nordic methodology as “parallel runs”, and have been agreed to be performed for at least one year before flowbased can go live.
The NEMOs, which own the market coupling algorithm, have stated there are obstacles to perform the parallel runs on the same day as the market coupling, and therefore they want to do the parallel runs with a delay of 14 days. The Nordic Regulators assume that this is not in line with what everyone had in mind about parallel runs. Thus, the Nordic Regulators would welcome input from the stakeholders, and we hope you will take your time to answer the following and help us.
Question 1: How would it affect your assessment and understanding of the flowbased to have a 14-days delay on parallel runs compared to having the parallel run on the same day as the market coupling?
Question 2: Do you expect to be looking at the parallel run flowbased results every day, during the parallel runs? If not, with what frequency do you expect to assess the flowbased results?
Question 3: What kind of other problems, if any, would you foresee in running the parallel run with a delay of 14 days?
The Nordic Regulators appreciate your feedback by email before the end of 28 April 2020.
On behalf of Nordic Regulators
Søren Lorenz Søndergaard
Danish Utility Regulator
Phone: +45 41715373