The Role Of ACER

ACER should monitor the progress of national NRAs in implementing the Third Package, enhance existing and contribute to new regional NRA cooperation and activities, and promote regulatory best practices across Europe.

In the short term, it is important that ACER is enabled and encouraged to carry out its existing mandate of coordinating national regulatory policies to its fullest extent, to be a pro-active facilitator among NRAs for cross-border projects and to define to what extent and how it handles joint regional NRA decision processes as foreseen in the network codes with regards to ‘all NRAs’ decisions.

The implementation of network codes and guidelines will be extremely demanding for ACER in the coming years. A high level of availability of teams from ACER, the EC and the ENTSOs will be necessary to deliver the best possible products within the ambitious time frame set in the network codes and to finalise the implementation of the Third Package.

ENTSO-E sees potentially a role for ACER in distributed flexibility. European legislation may be required in the future with regards to retail market improvements as a response to the increasing integration of retail and wholesale markets.

ACER’s current powers but also conceivable increased powers would not, by themselves, achieve these retail market improvements. Any future ACER action in this direction needs to be founded on legislation about the interactions between wholesale and retail markets.

The competitive activities of power exchanges are already subject to regulatory oversight by NRAs (be it financial or energy regulators). However, future experience with day-ahead and intraday market coupling processes will reveal the effectiveness of the current regulatory oversight of power exchanges with regard to their functions as market coupling operators (MCOs). There appear to be areas in which the role of individual NRAs in their oversight function is not yet clear or consistent. One example is currently applied cost recovery mechanisms via TSOs. ACER could carry out a regulatory oversight by reviewing annually the line of competition versus cooperation between PXs in market coupling operation and ensure that any identified regulatory gaps are filled without hampering market development.

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Recommendations

  1. ACER/CEER and NRAs should enhance regional regulatory coordination.

  2. ACER should monitor the implementation of the Third Package by NRAs, namely on the measures that enable wholesale and retail markets interactions.

  3. ACER needs to dispose of adequate resources for fulfilling its mandate.