One challenge all the Nordic countries face is how to provide incentives to reduce electric power losses in the network through regulation. NordREG therefore invites all interested parties to join a workshop on incentives to reduce network losses in the Nordic countries.

The workshop’s main goal is to share experiences on how to provide incentives for reducing losses, both in regards to current and future regulation. The workshop will also include practical examples of how losses are reduced by the network companies.

Target group: All interested parties.

When: The 27^thof April 2017, 9:30 – 16:00.

Where: Stockholm, Odenplan 7A. The address is Norrtullsgatan 6 in Stockholm.

Admission: Free.

Registration: Please do your registration on the website of Swedish Energy Market Inspectorate (Ei)  stating full name, organization and dietary requirements if relevant. Please register by April 17. Participation is limited to 60 people and places are assigned on a first come first served basis.

Program: Program of the day

Methodology

The Nordic energy regulators in NordREG have had a close cooperation on the development of a coordinated methodology for an assessment of the functioning of the Nordic electricity forward market. The assessment will be carried out following requirements in Commission Regulation (EU) 2016/1719 of 26 September 2016 establishing a guideline on forward capacity allocation (FCA GL).

NordREG finds it crucial that the assessment covers the most important indicators that are relevant for market participants in the Nordic electricity market. NordREG also finds it important to use indicators that are well-founded in economic theory and applicable in light of the specific characteristics of electricity markets. Hence, NordREG has engaged consultants and organized workshops about the implementation of the FCA GL in order to gain more insights related to methodology for evaluating the Nordic financial electricity market. In November 2016 EC Group delivered the report “Methods for evaluation of the Nordic forward market for electricity” which gave valuable input to the regulators on how to carry out the assessment following the FCA GL.

• The common NordREG methodology paper can be found here.

Consultation

Finland, Sweden and Denmark will perform a consultation in accordance with the FCA GL (Norway is formally not yet obliged to follow the FCA GL since the third package has not been implemented in Norway). This will take place during February/March 2017.
Further information on these processes can be found on the national regulators’ homepages.

Finland
Finland has an ongoing consultation in accordance with FCA GL about the market participants’ needs for cross-zonal hedging opportunities, which can be found in:

FCA -suuntaviivojen mukainen markkinaosapuolten kuuleminen

Finland has also conducted a study to review the market data using an external consultant. The results of this study can be found here: Calculations for the evaluation of the functioning of the wholesale electricity markets on the Finnish bidding zone borders as required in the FCA GL

Sweden’s consultation will shortly be published at:
www.ei.se

Denmark’s consultation will shortly be published at:
www.energitilsynet.dk

NordREG organized a seminar on DSO tariffs in the Nordic countries from the perspective of regulators, DSOs and customers on November 3^rd 2016. The seminar was held in Copenhagen, with more than 50 participants representing among others distribution system operators, industrial associations and national regulatory authorities. This was a follow-up seminar from a seminar arranged in 2015 about load tariffs in the Nordic countries from the perspective of network users.

Presentations from each of the national regulatory authorities on country specific issues related to DSO tariffs showed that the Nordic countries in varying degree consider tariff changes. One of the main topics regarding changes is related to a transition from energy based tariffs (kWh) to more capacity based tariffs (kW). Capacity based tariffs are already implemented in Denmark and Norway, but in Norway only for customers with a high demand for electricity. For the time being, both Sweden and Norway are discussing ways to implement either capacity based or time differentiated tariffs for all customers.

In addition, there were a presentation of CEER’s work on distribution tariffs providing a European perspective, as well as a presentation of how demand response influenced different customer segments in Sweden. Results from a Norwegian study indicated that prosumers, customers with their own electricity generation, in varying degree were affected by different tariff models. NordREG’s work with the supplier centric model across the Nordic countries illustrated the current state and the ongoing development of a Nordic retail market.

Finally, there were short comments from stakeholders like industrial associations and a Swedish customer organization. The active participants at the seminar raised several interesting questions, and the seminar provided a good opportunity to discuss DSO tariffs from a Nordic perspective.

Documentation

• Capacity and TOU tariffs for prosumers
• CEER work on distribution network tariffs
• Comments from DSO – Danish Energy Association
• Comments from DSO – Energy Norway
• DSO tariffs in Denmark
• DSO tariffs in Finland
• DSO tariffs in Iceland
• DSO tariffs in Norway
• DSO tariffs in Sweden
• Towards a supplier centric model
• What do customers want

In cooperation with NordREG, Nordic Energy Research is commissioning two separate studies related to the topic of demand side flexibility. NordREG will act as steering group for the two studies.

The first study will focus on flexibility from the DSO perspective, while the second study will concentrate on summarizing existing knowledge and recommending possible regulatory improvements. The studies shall be performed in English.

The tender documents are available at the Norwegian Doffin portal. The deadline for submitting offers is 23 January 2017, 12:00.

Links to the tenders:

• www.doffin.no/Notice/Details/2016-615557
• www.doffin.no/Notice/Details/2016-478275

As a response to the increased attention in the topic of demand side flexibility, NordREG has written a status report on regulatory aspects of demand side flexibility. The report aims to give a brief overview on some of the potential regulatory changes both at EU- and national level, accompanied with and overview of some relevant pilot project which may affect the potential development of demand response in the Nordics.

• Status report on regulatory aspects of demand side flexibility

Contact persons in NordREG:

Stian Henriksen, NVE, e-mail: sthe@nve.no
Lena Jaakonantti, Ei, e-mail: lena.jaakonantti@ei.se
Linda Aaberg, DERA, e-mail: laa@energitilsynet.dk
Ville Väre, EV, e-mail: ville.vare@energiavirasto.fi

Material published from NordREG’s workshop ”Methodologies for evaluation of the Nordic forward market for electricity” 7 december 2016, Arlanda, Sweden.

Here you find the presentation by consultants EC Group and Björn Hagman as well as comments to the study presented by stakeholders.

• EC Group
• ELFI
• EnergyNorway
• LOS-TelgeKraft
• NAET
• Statkraft

Here is also the status update on the FCA GL presented by NordREG.

•  NordREG FCA

Save the date: Workshop about Study on methodologies for evaluation of the Nordic forward market for electricity at Arlanda 7th of December 2016.

NordREG invites stakeholders to a workshop at Arlanda (Stockholm, Sweden) the 7th of December 2016, to discuss a study on methodologies for evaluating the Nordic financial electricity market with regards to the Commission Regulation (EU) 2016/1719 of 26 September 2016 establishing a guideline on forward capacity allocation (“FCA GL”).

DATE: 7th of December 2016

TIME: 10:00-15:00. Registration from 9:30.

VENUE: Radisson Blu SKYCITY, Arlanda Airport, Stockholm

AGENDA: draft-agenda-nordreg-ws-fca-7-dec-2016 (The Agenda will also be send by e-mail before the workshop.)

DOCUMENTS: The consultant report to be discussed in the workshop is found here: Methods for evaluation of the nordic forward market for electricity

REGISTRATION: Please do your registration on www.ei.se.
Please register by November 28.

Background

FCA GL was published in the Official Journal of the European Union on 27 September. The text foresees its coming into force 20 days after publication (17 October 2016).
The aim of the FCA GL is to establish common rules for Forward Capacity Allocation and providing market participants with sufficient hedging opportunities related to the area price risk. The FCA GL makes clear that the reference tools to allow for cross-border hedging are Long-Term Transmission Rights (LTTRs) auctioned by the TSOs. However, an exemption is possible, if cross-border financial hedging tools on both side of an interconnector exist and have shown their efficiency. In such a case, issuing of LTTRs is not mandatory, as long as the competent regulatory authorities of the bidding zone border have adopted coordinated decisions not to issue LTTRs. The code also provides for alternative products to be offered instead of LTTRs.

According to the FCA GL, the regulators` decision on whether to introduce LTTRs or not, shall be based on an assessment “which shall identify whether the electricity forward market provides sufficient hedging opportunities in the concerned bidding zones”. The assessment shall include at least “a) a consultation with market participants about their needs for cross-zonal risk hedging opportunities on the concerned bidding zone borders” and “b) an evaluation”.

The aim of the evaluation is to “investigate the functioning of wholesale electricity markets […].”

The FCA GL lists minimum criteria/indicators to include in the evaluation. The FCA GL does not exclude the possibility to add other indicators/criteria for the evaluation of the functioning of the market. NordREG finds it crucial that the evaluation covers the most important indicators that are relevant for participants in the Nordic electricity market. NordREG also finds it important to use indicators that are well- founded in economic theory and applicable in light of the specific characteristics of electricity markets. Hence, NordREG has commenced a consultant study that will be related to methodology for evaluating the Nordic financial electricity market.

The study should present a justified suggestion on the specific method/s to be used by the NRAs in the evaluation of the financial electricity markets as required in the FCA GL. NordREG will publish the study by the end of November and a workshop will be held at Arlanda (Stockholm, Sweden) the 7th of December 2016. The workshop will enable the stakeholders to provide their own views and also to have open discussion about the results of the study with the consultants EC Group with partners.

Contact persons in NordREG

Cathrine Holtedahl, NVE, e-mail mailto:cho@nve.no
Kimmie Byriel Laage-Petersen, DERA, e-mail KBLP@energitilsynet.dk
Kaj Forsberg, EI, e-mail: kaj.forsberg@ei.se
Jarno Lamponen, EV, e-mail: jarno.lamponen@energiavirasto.fi

NordREG invites all interested parties to join a seminar on DSO tariffs in the Nordic countries from the perspective of regulators, DSOs and customers.

In November 2015, NordREG organized a seminar on load tariffs in the Nordic countries, from the perspective of network users. Due to the success and interest in the seminar, it was decided to conclude the topic with a follow-up seminar. The follow-up seminar will focus on what the NRAs are doing in the area and how we foresee tariff developments nationally.

Target group: All interested parties.

When: The 3rd of November 2016, 9:30 – 16:00.

Where: Copenhagen, The Danish Energy Regulatory Authority (DERA) premises. The address is Carl Jacobsens Vej 35, 2500 Valby.

Admission: Free.

Registration: Please send an email to KSB@energitilsynet.dk, stating full name, organization and dietary requirements if relevant. The deadline is the 20th of October 2016.

Participation is limited to 70 people and places are assigned on a first come first served basis.

• Program of the day

This consultation concerns a common proposal developed by the Nordic Transmission System Operators regarding arrangements concerning more than one NEMO in a bidding zone in accordance with Article 45 and 57 of the Commission Regulation (EU) No 2015/1222 of 24 July 2015 establishing a Guideline on Capacity Allocation and Congestion Management (CACM).

The approval of the TSOs proposal is a task for each induvial energy regulator. However, as the Nordic TSOs have developed a common proposal and the Nordic energy regulators are working closely on this matter, a NordREG consultation will be held.

NordREG welcomes written input on the proposed arrangements within the 16th of September 2016. Comments (in English) can be sent to registrator@ei.se. Please mark your answers to the consultation with the following reference number 2016-101956.

• Nordic TSOs’ proposal on multiple NEMO arrangements

Contact persons in NordREG

Maria Rydberg, Ei
maria.rydberg@ei.se

Lisbet Vedel Thomsen, DERA
lvt@energitilsynet.dk

Mari Salo, EV
mari.salo@energiavirasto.fi

Helena Lindstad Mellison, NVE
hem@nve.no

Following the consultation on the NordREG-report on measures to support the functioning of the Nordic financial electricity market, NordREG will arrange a stakeholder workshop at Arlanda (Stockholm, Sweden) 10 May 2016.

The report “Measures to support the functioning of the Nordic financial electricity market” by THEMA Consulting Group and Hagman Energy” was commissioned by NordREG in light of the recent development of the Guideline on Forward Capacity Allocation (FCA).

The report describes potential measures to consider in cases where insufficient hedging opportunities have been identified in certain bidding areas. Valuable views emerged during the consultation of the report which will be discussed 10 May.

The following topics will be addressed at the workshop;

• Presentation of the report and input from the consultation
• Discussions and additional remarks on the report
• Presentation of NordREGs initial thoughts on the methodology for evaluation of current hedging opportunities in Nordic bidding zones
• Status update on the FCA GL and identification of the next steps

Date: 10 May 2016 from 09:30 to 16:00

Venue: Radisson Blu Arlandia Hotel, Arlanda Airport, Stockholm

Agenda: Here you can find the draft agenda for the workshop:

• Draft agenda for NordReg workshop on FCA May10

Registration: Please register by e-mail: kaj.forsberg@ei.se

Contact persons at NordREG:

Cathrine Holtedahl, NVE, e-mail cho@nve.no
Kimmie Byriel Laage-Petersen, DERA, e-mail KBLP@energitilsynet.dk
Kaj Forsberg, EI, e-mail: kaj.forsberg@ei.se
Jarno Lamponen, EV, e-mail: jarno.lamponen@energiavirasto.fi

Responses to NordREG:s consultation on the report

• Energinet
• EnergyNorway
• Fingrid
• FinnishEnergy
• Fortum
• NAET
• Nasdaq
• Norsk Industri
• Swedenergy
• Svenska kraftnät

10 May 2016 – presentations from the workshop

• Energinetdk
• Energy Norway
• NAET Fortum
• Nasdaq
• NordREG – FCA update
• NordREG – Regulators’ thoughts on evaluation methodology
• NordREG – Summary of consultation feedback
• Swedenergy
• Svenska kraftnät
• THEMA Hagman – summary of report