Risk Preparedness Regulation – Commission’s Guidance
Ref. Ares(2021)4296942 - 01/07/2021
Risk Preparedness
Regulation:
Commission’s Guidance
(Art. 15)
ECG 5th June 2020
Risk Preparedness Regulation – Commission’s Guidance
Main changes
Assistance can only be triggered by a requesting Member State:
• as a last resort if all options provided by the market have been exhausted
or,
• where it is evident that market-based measures alone are not sufficient.
The trigger is defined based on:
• an existing or imminent situation in which a MS cannot ensure protection
against disconnection of users entitled to receive special protection, or;
• the need to ensure the supply of electricity necessary for the purpose of
protecting its public safety and personal security.
Imbalance settlement prices after a crisis should reflect the cost to
consumers of any disconnections to supply.
Technicalities regarding effective disconnection of users.
Risk Preparedness Regulation – Commission’s Guidance
Article 15(7): Commission, by 5 January 2020, after consulting the ECG and ACER,
has to provide for non-binding guidance on the key elements of the fair compensation
and other key elements of the technical, legal and financial arrangement as well as on
general principles of mutual assistance
•
Assistance is a mechanism of last resort to prevent or manage
electricity crises. Prices should be allowed to form based on supply
and demand for as long as possible.
•
Assistance can only be triggered by a requesting Member State as a
last resort if all options provided by the market have been exhausted
or where it is evident that market-based measures alone are not
sufficient to prevent a further deterioration of the electricity supply.
•
National measures in the requesting Member State’s risk-
preparedness plan must have been exhausted.
Risk Preparedness Regulation – Commission’s Guidance
The objective is to provide legal certainty to all involved in
providing or receiving electricity in an electricity crisis
•
Member States concerned
•
Request for assistance
•
Electricity users entitled to receive special protection
L
against disconnection for reasons of public safety and
E
personal security
•
Start and end of provision of assistance
G
•
Roles and responsibilities
A
•
Legal form of the regional and bilateral arrangements
L
•
Assistance before agreements have been concluded
•
Treatment of confidential information
Risk Preparedness Regulation – Commission’s Guidance
The objective is to describe all necessary technical provisions
and conditions that would enable the assistance mechanism to
work in practice
T
•
Technical solutions and coordination
E
•
Technical information in the early warning and
C
declaration of crisis and re-assessment once
assistance is required during the crisis
H
•
Operational security of networks
N
•
Observance of market rules
I
•
Activation of non-market-based measures:
Measures constituting a restriction of electricity flows
C
between Member States
Market suspension
A
L
Risk Preparedness Regulation – Commission’s Guidance
The objective is to ensure that electricity supplied under the
assistance mechanism is paid for at an appropriate price
•
Price of electricity:
F
Market price
Administrative pricing / forced curtailment
I
Willingness to pay
N
•
Other categories of costs
Associated transmission costs
A
Compensation for curtailment
N
Cost of judicial proceedings in Member State providing assistance
•
Indication
of
the
method
of
calculating
fair
C
compensation
I
•
Calculating the compensation
•
Arrangement for payment
A
•
Roles and responsibilities – who pays whom
L