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Published: 1/14/2021. Updated: 1/14/2021

ACER SETS THE METHODOLOGY FOR THE USE OF CONGESTION INCOME


National Energy Regulatory Council (NERC) which participates in the activities of EU Agency for the Cooperation of Energy Regulators (ACER), informs that ACER on 23rd of December published decision on the Methodology for the Use of Congestion Income. The Decision has been taken in accordance with the EU Regulation on the internal market for electricity and approves the TSOs' proposed methodology submitted to ACER on 3 July 2020.

Congestion income originates from the prices difference between bidding zones. In Lithuania, congestion revenues are managed by TSO AB "Litgrid".

The methodology provides the following elements:

  • It sets the conditions under which congestion income resulting from the allocation of cross-border capacity may be used according with the EU Regulation on the internal market for electricity.
  • It sets the conditions under which congestion income may be placed on a separate internal account line for future use for those purposes.
  • It determines for how long congestion income may be placed on such an internal account line.

In the Agency's view, the submitted proposed methodology duly meets the procedural and substantive requirements laid down in the EU Regulation, and therefore deemed appropriate to approve it.

You can access the Decisions here.