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ACER Recommendation on CBCA decisions

        
Investment request and cross border cost allocation (CBCA)         

Introduction:

Regulation (EU) No 347/2013 enables project promoters of projects of common interest (PCI) to submit to NRAs an investment request including a request for cross-border cost allocation (CBCA).             

In order to facilitate CBCA processes, including enabling the submission of complete investment requests of adequate quality and ensuring a consistent approach in deciding on the allocation of cost across borders, the Agency shared good practices with project promoters and NRAs in its first CBCA Recommendation, adopted on 25 September 2013, applicable to the investment requests submitted in the framework of the first Union list of electricity and gas PCIs.              

Built upon the experience gained with the first investment requests, the Agency revised and completed the first CBCA Recommendation. On 18 December 2015, the Agency issued a new CBCA Recommendation (Recommendation No 05/2015) which replaced the former guidance of 2013.              

Practical information for NRAs:

Regulation (EU) No 347/2013 requires NRAs to inform the Agency about investment requests and CBCA decisions without delay and to share relevant documents [see Article 12(3) and (5)].The Agency also invites NRAs to keep the Agency informed about the treatment of the investment requests [see Section 2.11. of the Agency’s Recommendation No 05/2015].        
NRAs should send the information to cbca(at)acer.europa.eu , with identification of each PCI, making reference to the respective PCI number on the valid PCI list.            

ACER Recommendation on cross-border cost allocation (CBCA):

On 18 December 2015, the Agency issued its Recommendation No 05/2015 to help project promoters and NRAs during future cross-border cost allocation procedures and to facilitate consistent and streamlined EU-wide approach by sharing good practices.        
The first chapter of the Recommendation provides guidance to project promoters on the submission of an investment request. In this context, the Agency recommends what conditions a project should fulfil to be considered as “sufficiently mature” (Section 1.2) and what information the project promoters should include in an investment request (Section 1.5). It also details how to calculate the net impacts per country, how to consult the relevant TSOs and to which NRAs the investment request should be addressed.            
The second chapter of the Recommendation provides the main principles that NRAs should follow when assessing an investment request and deciding on the allocation of costs across Member States. It also provides some guidance on the adjustments of CBCA decisions, cross-border payments, the inclusion of cost in tariffs and the evaluation of impacts on network tariffs.            

The third chapter of the Recommendation details the reporting requirements of project promoters towards NRAs and TSOs of the relevant Member States.              

On 2 February 2016, ACER organised a public workshop in Ljubljana on cross-border cost allocation. The draft agenda and presentations of the workshop are available here.              

Overview of cross-border cost allocation decisions:             
This overview report provides information regarding decisions on the investment requests, including CBCA decisions for electricity and gas PCIs, adopted either by NRAs or the Agency. It covers 24 CBCA decisions taken up to January 2017, providing some facts / findings regarding the CBCA process. It represents an update to the first edition of the CBCA summary report, published by the Agency together with its second Recommendation No 05/2015 on CBCA.        


Documents:

Agency’s acts and publications
Agency’s Recommendation on CBCA
Agency Recommendation No. 05/2015 of the Agency for the Cooperation of Energy Regulators of  18 December 2015 on good practices for the treatment of the investment requests including cross border cost allocation requests for electricity and gas projects of common interest.
Agency individual CBCA decisions:
Gas decisions:
GIPL
Electricity decisions:
LitPol
Publications:
Overview of cross-border cost allocation decisions - Status update as of January 2017​
Related documents
Regulation (EU) 347/2013 (See Article 12)
ENTSOG CBA methodology
ENTSO-E CBA methodology