Every year, the Agency for the Cooperation of Energy Regulators (ACER) reviews the implementation of the Inter-Transmission System Operator Compensation (ITC) mechanism on behalf of the European Commission (EC). This also includes the monitoring of the management of the ITC Fund established by the European Network of Transmission System Operators for Electricity (ENTSO-E). The purpose of this fund is to compensate transmission system operators (TSOs) for the costs incurred as a result of the hosting of cross-border electricity flows.
ACER has now published the ITC report for 2017, in which the Agency concludes that the implementation of the ITC mechanism and the management of the ITC Fund in 2017 continued to comply with the requirements of the relevant European regulation. While the ITC Fund remained relatively stable at €259.35m compared to 2016, the volume of transitory losses increased significantly. However, the increasing impact on the losses component of the ITC Fund was almost fully offset by a notable reduction in the weighted average value of losses for the ITC parties. This average value of 35.36€/MWh was actually the lowest since 2011.