|European Network of Transmission System Operators for Electricity (ENTSO-E)|
|European Union Electricity Market Glossary|
European Network of Transmission System Operators for Electricity (ENTSO-E) is the association representing European Transmission System Operators (TSOs) and has been formally established under Regulation 714/2009, which defines its role and legal mandate.
Additional roles and responsibilities of ENTSO-E are contained in Regulations 838/2010, 543/2013 and 347/2013.
ENTSO-E works closely with the European Commission (EC) and the Agency for the Cooperation of Energy Regulators (ACER) and consults with all the stakeholders when carrying out its duties.
Special role is attached to the ENTSO-E by the Winter Energy Package. Regulation (EU) 2019/943 of the European Parliament and of the Council of 5 June 2019 on the internal market for electricity (recast) in Recital 42 explains that the ENTSO for Electricity is established in order to “ensure optimal management of the electricity transmission network and to allow trading and supplying electricity across borders in the Union“.
ENTSO-E mission and functions
ENTSO-E's mission is to fulfil its various legal mandates for the benefit of electricity customers, and to leverage its mandated work products to shape future energy policy for the benefit of society at large in the face of significant challenges in the areas of:
- security of supply in maintaining a high level of operational security and promoting the adequate development of the interconnected European grid and investments for a reliable, efficient and sustainable power system.
- markets, by proposing and implementing market integration and transparency frameworks that facilitate competitive and integrated continental wholesale and retail markets.
- sustainability, by facilitating secure integration of renewable generation sources and other energy mix changes (see ENTSO-E draft Work Programme 2015 through December 2016, p. 4).
As the above Work Programme further elaborates (p. 5), the TSOs' neutral and unbundled role in the electricity market "is the basis not only for the legal mandate but also for policy suggestions. Being a non-profit association of its member TSOs, ENTSO-E's policy suggestions build on the public-service orientation of its members, where regulation is designed to align the TSOs' interests with those of consumers and society at large. ENTSO-E is engaged to explain transparently how society's interests are advanced through its work products, especially in the rare cases of doubts about interest alignment."
The central purpose of the ENTSOs is to facilitate the cooperation of TSOs in promoting the completion and the well-functioning of the EU Internal Electricity Market (IEM) and cross-border trade, as well as to ensure optimal management, coordinated operation and sound technical evolution of the electricity and gas transmission networks (Article 4 of Regulation (EC) No 714/2009, Article 4 of Regulation (EC) No 715/2009).
Pursuant to Article 4(1) of ENTSO-E's articles of association, "the Association shall, on a non-profit-making basis, pursue the co-operation of the European TSOs both on the pan-European and regional level. It promotes the TSOs' interests and has an active and important role in the European rule setting process in compliance with EU legislation. Its objective is to promote the reliable operation, optimal management and sound technical evolution of the European electricity transmission system in order to ensure security of supply and to meet the needs of the IEM."
Joint ACER-CEER response to European Commission's Consultation on a new Energy Market Design of 7 October 2015 (p. 26), however, argues the current legal framework does not establish for ENTSOE-E sufficient general safeguards, notably against conflicts of interests, i.e. between the interest of the Union and individual TSOs' interests, against inefficient decision-making and against the failure to deliver.
The above ACER/CEER document of 7 October 2015 underlines, in fact, "there is no clear requirement for the ENTSOs to act in the interest of the Union, prevailing over any individual TSOs' interests, no clear definition of general decision-making rules and no generally applicable sanctions for the ENTSOs' failure to deliver."
Proposal for a Regulation of the European Parliament and of the Council on the internal market for electricity (recast) of 30.11.2016, (COM(2016) 861 final 2016/0379 (COD)) in Articles 25 - 31 redefines the role and functions of the ENTSO-E.
In particular, the mission of the ENTSO-E has been reformulated in the following way:
"In performing its functions under EU law, the ENTSO for Electricity shall act for the European good and independent from individual national interests or the national interests of transmission system operators, and shall contribute to the efficient and sustainable achievement of the objectives set out in the policy framework for climate and energy covering the period from 2020 to 2030, in particular by contributing to the efficient integration of electricity generated from renewable energy sources and to increases in energy efficiency."
Under the 'Winter Energy Package' ENTSO for Electricity has also the responsibility to prepare and to adopt proposals related to the European resource adequacy assessment and for the technical specifications for cross-border participation in capacity mechanisms.
Pursuant to the above legislative proposition ENTSO for Electricity is assigned, among others, the following tasks with respect to regional operational centres:
- adoption of a framework for the cooperation and coordination between regional operational centres,
Governance structure of the ENTSO-E
The governance of ENTSO-E envisages the three different kinds of participation:
Members have the right to attend and vote in all bodies (General Assembly, committees, groups).
In ENTSO-E, both EU and non-EU TSOs can become members.
TSOs from 36 countries are members of ENTSO-E - apart from the EU’s TSOs, the TSOs from Albania, Bosnia and Herzegovina, Iceland, Switzerland, Montenegro, FYR of Macedonia, Norway and Serbia.
However, a non-EU TSO can be member only if its country has entered into an agreement with the EU governing its relationship with the EU Internal Electricity Market.
Associate members can attend all bodies, but do not have a right to vote.
To become the ENTSO-E associate member the candidate TSO is required to show its concrete intention to comply with the relevant technical and market rules of the EU Internal Electricity Market.
Observers have limited rights in the ENTSO-E’s governance structures.
ENTSO-E observers are not granted any voting rights, moreover, the attendance rights are limited (an observer cannot attend any meeting by default but it may be provided with information and publications of working groups to which it was invited to name a representative).
|Last Updated on Friday, 06 September 2019 10:58|