How does the EC consider improving incentives for investments in cross border electricity capacity?
Current regulation (article 6.6 of Regulation 1228/2003 on cross-border trade in electricity) states that revenues resulting from the allocation of congested interconnector capacity shall be used for: a) guaranteeing the actual availability of the allocated capacity; b) network investments maintaining or increasing interconnector capacities, or; c) as an income to be taken into account by the regulatory authorities when approving the methodology for calculating network tariffs, and/or in assessing whether tariffs should be modified. In addition, national regulators in the Member States should consider this issue in their regulatory framework. Together, EU Regulation and national regulatory frameworks should ring-fence congestion revenues with a view to ensuring that the revenues are used for reinforcing existing interconnectors.
