Approval of the amended all TSOs' proposal for a Congestion Income Distribution Methodology

13 June 2019

The Utility Regulator has today, 13 June 2019, published its decision on the all TSOs’ proposal for a Congestion Income Distribution Methodology submitted in accordance with Article 57 of the Commission Regulation (EU) 2016/1719 of 26 September 2016 establishing a guideline on Forward Capacity Allocation.

In the context of the FCA Regulation, congestion income is accrued from each auction of long-term transmission rights on a bidding zone border where, after collection by the Single Allocation Platform, the congestion income is assigned to each Bidding Zone border and then distributed to the TSOs on each side of the border.

Where congestion income derives from transmission assets owned by legal entities other than TSOs, the TSOs operating these assets shall conclude the necessary arrangements, compliant with the Congestion Income Distribution Methodology, with the relevant transmission asset owners to remunerate them for the congestion income from Forward Capacity Allocation corresponding to the transmission assets they operate on their behalf.

The all Regulatory Authorities’ agreement reached on 22 May 2019, attached as an annex to this decision letter, constitutes the reasons for the all Regulatory Authorities decision. In line with the all Regulatory Authorities’ agreement, the UR hereby requests an amendment to the Congestion Income Distribution Methodology.