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

As a response to an ongoing European discussion regarding aggregation of demand response, a NordREG working group has written a discussion paper about different arrangements for aggregation of demand response.

• NordREG – Discussion of different arrangements for aggregation of demand response in the Nordic market

In the paper, NordREG discusses the consequences for the settlement of Balance Responsible Parties (BRPs) in relation to several market setups for aggregation of demand response, including market setups for so-called “independent aggregators”, an aggregator which is independent from the customer’s supplier and BRP.

NordREG identifies some inherent practical challenges and potential negative consequences of a market setup with “independent aggregators”, since such a model would most likely imply the need for several BRPs per connection point.

Further, NordREG concludes that the current Nordic market setup, with a competitive and well-functioning retail market, should be able to bring demand response as a choice for all consumers, through one BRP. Such solutions could e.g. be developed by suppliers offering services for aggregation of demand response, or if suppliers and aggregators cooperates in offering such services.

NordREG recognise that other measures may be relevant for less competitive markets throughout Europe, though we generally believe that the priority should be to first improve market functioning.

Last but not least, NordREG stress the need for the competent national authorities to have freedom to conduct thorough impact assessments before any changes to the market setup are introduced, based on the national market situation.

Contact persons in NordREG:

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

NordREG launches a market consultation on the report:

• “Measures to support the functioning of the Nordic financial electricity market” by THEMA Consulting Group and Hagman Energy”.

The report 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. The consultants were asked to describe and analyse different models for TSO involvement in the forward electricity market in order to facilitate improved hedging possibilities.

NordREG welcomes written input and comments to the report within the 31st of March 2016. Comments (in English) can be sent to: NordREGFCAstudy@energiavirasto.fi

Further, NordREG is planning a workshop with market participants and TSOs during the first half of 2016, to discuss the input from the consultation and to identify next steps. More information will follow.

Contact persons in 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

In light of the recent development with the Guideline on Forward Capacity Allocation (FCA) (see Background), the Nordic energy regulators are in the process of paving the way forward for the Nordic electricity market. The Nordic NRAs` starting point is to maintain and improve the current Nordic market design, relying on financial products for price hedging, while improving the market participant`s ability to hedge their price risk.

Hence, NordREG has commissioned a study on potential measures to consider in cases where insufficient hedging possibilities have been identified in certain bidding areas. The consultants were asked to describe and analyse different models for TSO involvement in the forward electricity market in order to facilitate improved hedging possibilities.

THEMA Consulting Group and Hagman Energy AB have now delivered their report “Measures to support the functioning of the Nordic financial electricity market” to NordREG. (Link to the report)

The Nordic NRAs will organise a hearing of the findings in the report in the beginning of 2016, where all market participants will be invited to give their written input. More information on this will follow. The goal is to have a close cooperation with market participants in the Nordic electricity market at an early stage, which will be a good starting point for the process required when the FCA GL enters into force.

Background

On the 30th October 2015, the EU Member States gave a favourable opinion on the Draft Regulation establishing a Guideline on Forward Capacity Allocation (FCA). One of the main objectives with the FCA GL is to provide cross-border hedging opportunities for market participants. The reference tools for cross-border hedging are long-term transmission rights (LTTRs). However, the competent national regulatory authorities (NRAs) of a bidding zone border can issue coordinated decisions that TSOs shall not issue LTTRs. Such decisions shall be based on an assessment, which shall identify whether the electricity forward market provides sufficient hedging opportunities in the concerned bidding zones. In case the assessment shows insufficient hedging opportunities, the NRAs shall request to the TSOs to implement adequate measures; either to issue LTTRs on the concerned bidding zone border, or to make sure that other long-term cross-zonal hedging products are made available to support the functioning of wholesale electricity markets.

Disclaimer

The study is carried out by THEMA Consulting Group and Hagman Energy AB, and the content does not necessarily reflect the views of the NRAs in NordREG.

• TE-2015-35 Measures to support the functioning of the Nordic financial electricity market

 

NordREG´s statistical summary of the Nordic Energy Market 2014 is now available on the NordREG web. This year, the report consists of a statistical package and a short written summary with key figures and findings from the statistical package.

• Main developments and trends
• Dataset NMR

On the 5th of November, the NordREG Network Regulation Working Group arranged a seminar about DSO tariffs which was hosted by the Swedish Energy Markets Inspectorate in Stockholm.

The topic of the seminar was “What should NRA’s do to incentivise more energy efficiency in distribution and use of energy through grid tariff design?”.

Around 50 people participated in the seminar and listened to presentations by speakers from Sweden, Norway, Finland and Denmark.

If you want to see the presentations you can find them below:

• Introduction – Tariffs in Nordic countries
• Demand side flexibility, load tariffs and grid investment savings
• Developing DSO’s tariff structure
• Experiences and results from experiments with time-of-use network tariffs
• Impacts of DR and DER on DSO tariff structure development
• Implementation of the Nodal Pricing Regime for Distribution Network Pricing
• New network tariffs in Sweden
• Potential customer impacts of new tariffs
• Synthesis of electricity tariffs
• Updated Danish DSO tariff model – and focus points for future development in tariff design

On 5th November, NordREG* invites participants to a seminar in Stockholm. The title of the day is Load tariffs in the Nordic countries and the main question that will be discussed is “What should the NRA do to incentivise more energy efficiency in distribution and use of energy through grid tariff design?”. The seminar will be held in English, is free of charge and is specially targeted at network owners and other concerned parties.

Date: 5th November 2015

Time: 10.00-16.00 (coffee and registration from 9.30)

Place: Westmanska palatset, Holländargatan 17, Stockholm, Sweden

Material: Material for the seminar, i.e. a participation list and an overview of the Nordic countries’ present load tariff designs, will be sent the 22nd of October.

Attention

Registration: Registration is done through the Swedish Energy Market Inspectorate (Ei). Last day for registration is 20th October. Note that the number of places is limited to 60. You will receive a notification by email of your registration well ahead of the seminar.

To the Swedish Energy Market Inspectorate (Ei) for more information and registration.

On 5th November, NordREG* invites participants to a seminar in Stockholm. The title of the day is Load tariffs in the Nordic countries and the main question that will be discussed is “What should the NRA do to incentivise more energy efficiency in distribution and use of energy through grid tariff design?”.

The seminar will be held in English, is free of charge and is specially targeted at network owners and other concerned parties.

Date: 5th November 2015 in Stockholm, Sweden
Material: Material for the seminar, i.e. a participation list and an overview of the Nordic countries’ present load tariff designs, will be sent the 22nd of October.
Information and registration: More information about the seminar will follow and registration will open shortly.

NordREG publishes a report made by PÖYRY on behalf of NordREG. The report contains current Nordic national regulations focused on mapping TSO and DSO roles and responsibilities when it comes to market design to enable energy services in the Nordic electricity markets, with a particular focus on the DSO’s role and unbundling.

The importance of providing customers with energy services will increase in the near future and Nordic retail energy markets need to be designed in a way to enable energy services companies (ESCOs) to enter the market. DSOs and TSOs play an important role for the entrance of the ESCOs to the market, as they provide them with the possibility to manage the customers’ electricity consumption and/or balance. The entrance of the ESCOs can furthermore create situations which are currently unusual in the electricity market.

The report notes that DSOs are responsible for informing customers about energy efficiency measures in Denmark and Sweden, but that it is not specified in the other Nordic countries. The DSOs are also responsible for making consumption data accessible to customers in all countries. In Denmark, Finland and Sweden, DSOs are also responsible for informing customers of the potential use of smart meters.

The report considers unbundling of accounts, legal unbundling, functional unbundling and unbundling of brands. It notes that unbundling rules are similar in the Nordic countries, which have all imposed legal and accounts unbundling. Functional unbundling is required for DSOs with at least 100,000 customers in Denmark, Norway, and Sweden and for DSOs with at least 50,000 customers in Finland.

NordREG believes that the DSOs and TSOs have important roles if to enabling energy services in the Nordic Electricity Market.  NordREG notes that the consultant, PÖYRY, has provided useful information on existing national regulatory frameworks even though the scope of the term for energy services used by the consultant may not reflect NordREG’s definition of energy services.

• Mapping of TSOs and DSOs role and responsibilities