News Brief of 7.3.2017

News from the Greek energy market:

A. Public Consultation regarding the Draft Plan for the Ten-year (2018-2027) Hellenic Electricity Transmission System Development Program

IPTO submitted Draft Plan for the Ten-year Hellenic Electricity Transmission System Development Program for (2018-2027) (A1).

B. One-day Conference on ‘The permanent tender procedures for the submission of bids pertaining to RES projects.

On 10.02.2017, RAE held one-day informative conference for all interested parties. The following subjects were discussed:
 Pilot tender process for the submission of bids for PV Facilities - Results & Conclusions
 The legal framework for permanent tender procedures for the submission of bids pertaining to RES projects
• European Commission Guidelines
• Law 4414/2016
- Approval by the EU of the permanent tender procedures’ design and structure
- Opinion issued by RAE
- Issue of M.D.
 Basic principles and thoughts on the concept of permanent tender procedures
 Designing permanent tender procedures
• Open issues
• Next steps/planning (Α2).

European news:

A. Public Consultation conducted by the Council of European Energy Regulators (CEER) regarding incentive regulation for distribution system operators

The Council of European Energy Regulators (CEER) has particular interest in regulation pertaining to Distribution Operators. Incentive regulation for DSOs (particularly regulation that promotes innovation) is one of its priorities.

Regarding inducements, the Council has released public consultation statement outlining the European Regulatory Authorities’ initial understanding of the matter. It aims to gather information from interested parties in order to lay down good practice guidelines for incentive regulation regarding Distribution System Operators, including inducements for innovation. It calls on interested parties for their opinion on three main subject matters:

 - Principles on regulating targets and tools.
 - Changing needs - how the changing electricity sector poses new challenges for the National Regulatory Authorities regarding the design of effective regulatory models.
      -Changing targets in regulation determined by the changes in the energy sector and good practices in regions prioritized by CEER. Regulatory Authorities and other interested parties can utilize both of these, in order to achieve  the best possible results for the system (B1).

Β. Good Practice Guidelines on Electricity Distribution Network utility rates

Regarding Network utility rates, the Council of European Energy Regulators (CEER) has released guidelines that explain how different structures in electricity network utility rates can be useful for handling future Distribution Network issues, such as incorporating distributed Generation and increased self-consumption. Its statement presents the current situation, the need for change and the basics of rate design. The advantages of different approaches in rate design are examined in light of future challenges and opportunities for Distribution Networks.
Please see below seven key principles regarding Distribution Network rate design:
Cost reflectivity: In order to ensure efficient network use and growth, tariffs paid by network users must reflect true costs and offer incentives for reducing future prices.
Non-distortionary: Costs must be recovered without distorting decisions regarding the use of and access to the network
Cost recovery: Distribution Network Operators must be able to efficiently recover their costs. Apart from Distribution Network utility rates, they can recover costs through connection charges and adaptable services
Non-discriminatory: There shall be no groundless discrimination among network users
Transparency: The process for calculating charges shall be transparent and accessible by all interested parties
Predictability: It is important that network users can calculate their utility charges beforehand and on their own behalf in order to facilitate efficient long-term investments. However, the changing nature of the electricity system means that Network utility rates must evolve through time.
Simplicity: When possible, rates must be comprehensible and easily applicable. Simplicity in rates facilitates quicker user response. (Β2) (attached).

Information Document