Summary of AEEG Resolutions

ARG/elt Resolution no. 52/09

In this measure, the Authority amended Resolution no. 111/06 in order to implement measures regarding the regulation of essential plants pursuant to art. 3, paragraph 11 of Law no. 2 of January 28, 2009.
In particular, the measure establishes:

  • criteria for Terna to identify plants or groups of “essential plants” controlled by a single entity that are consequently subject to the regulations governing “essential plants”;
  • conditions for submitting market bids by entities controlling essential plants;
  • specific mechanisms governing essential units designed to ensure cost minimisation for the system and fair remuneration for generators.

As regards dispatching rules, Terna is required to amend the Grid Code to incorporate the provisions contained in this measure regarding the regulation of essential plants, pursuant to the terms and conditions established under art. 6 of Resolution no. 111/06.

ARG/elt Resolution no. 74/09

In this measure, the Authority has established urgent provisions for calculating metering aggregation prices for dispatching purposes, which will be valid starting from the July 2009 metering aggregation fee.
Specifically, the Authority has taken the following steps:

  • the extension through to the end of 2010 of Terna’s recourse to distribution companies for metering aggregation pending final determination of the procedure for the selection of entities other than distribution companies;
  • amendment of the fees paid to Terna and distribution companies by way of advance payment for the metering aggregation service, taking into account the economies of scale associated with an increase in the number of hourly points and the number of input points corresponding to small generation plants;
  • definition of an aggregation fee for differentiated metering for input points corresponding to 74/08 units in order to reflect the different procedure under which Terna provides metering aggregation services for this type of point.

The Authority has postponed to a later provision the introduction of quality parameters for the performance of the aggregation service to which the fee and/or indemnities for ancillary service users would be linked.

ARG/elt Resolution no. 84/09

In this measure, from January 1, 2010, the Authority amended the provisions contained in Resolution no. 111/06, and set a new method for calculating aggregate zonal imbalancing. The methodology introduced under the resolution calculates zonal imbalancing solely with reference to actions taken by Terna on the Ancillary Services Market to balance electricity input and withdrawal within a macrozone. The new mechanism resolves a number of critical issues with the current system: prices will no longer be subject to adjustment as a result of adjustments to metering data, and it will be possible to calculate actual imbalancing prices on a close-to-real-time basis.

ARG/elt Resolution no. 89/09

With this measure the Authority established provisions concerning the provision of electricity dispatching services for grids that are not interconnected with the National Transmission Grid (the grids on the smaller islands), partly in order to implement the rules governing electricity sales services without discrimination between end users connected to grids with the obligation to connect third parties in areas interconnected with the National Transmission Grid and end users in areas not interconnected with the latter. The provisions will enter force as from January 1, 2010.

ARG/elt Resolution no. 90/09

With this measure the Authority, responding to complaints received by a number of generation companies, established that CIP 6 generation units and/or units producing both electricity and heat that are not authorised for dispatching, for which Terna has established generation restrictions for the purpose of ensuring the operational safety of the national electrical system, may exclude, for the purposes of implementing Resolutions nos. 27/99, 42/02 and 188/06, the period to which the generation restrictions imposed for the purpose of ensuring the operational safety of the national electrical system refer, as such restrictions are outside the control of the generators.
By January 31 of each year, Terna will transmit a register of the generation restrictions established for generation unit involved to the generator, to the dispatching customer, to the ESO and the Authority.

ARG/elt Resolution no. 91/09

In this measure, the Authority extended the deadline for the remuneration of electricity delivered to the grid by generators eligible for the dedicated withdrawal rules pursuant to Resolutions nos. 34/05 and 280/07. The measure regards generators who failed to submit the access application in time, and have since operated without a contract for input dispatching services.
As regards generating plants subject to dedicated withdrawal pursuant to Resolution no. 34/05, after auditing the data submitted by the generator in a specific application, Terna shall pay the generator a price equal to the sale price as defined in art. 4 of Resolution no. 34/05. Terna shall charge the associated costs to the fee for provisioning of resources on the Ancillary Services Market (uplift).

ARG/elt Resolution no. 104/09

In this measure, the Authority established urgent measures concerning the adjustment of the withdrawal allocation coefficients (CRPUs) for June 2009 and the related adjustment in order to minimise the financial exposure that dispatching users would otherwise incur as a result of the application of incorrectly calculated CRPUs. With the resolution, the Authority approved the special procedure proposed by Terna to resolve the issue, providing for a single application in conjunction with the settlement of dispatching fees for June 2009.

ARG/elt Resolution no. 107/09

With this measure, the Authority approved its integrated text of provisions governing the physical and financial settlement of dispatching services (TIS). The measure:

  • unifies in a single, integrated text all measures concerning the monthly aggregation of metering, the attribution to each dispatching user of the electricity withdrawn from each non-hourly withdrawal point and settlement of the related dispatching fees;
  • governs the processing of dispatching data where the distribution companies do not comply with the disclosure requirements concerning aggregation of metering. The new procedures are scheduled to be applied as from January 2010;
  • supplements and, accordingly, repeals as from August 1, 2009 Resolution no. 278/07 - TILP and ARG/elt Resolution no. 29/08 as concerns, respectively, the conventional calculation by hourly timeband of the electricity withdrawn from nonhourly withdrawal points and the conventional calculation of electricity withdrawals by non-hourly public lighting users.
    The provisions will continue to be applied to the extent necessary and solely in respect of the settlement of items accruing before August 1, 2009;
  • amends Resolution no. 111/06 with regard to the provisions concerning the provisioning of dispatching resources and the definition of conditions governing dispatching services as regards the registration of electricity purchases and sales and the corresponding delivery and withdrawal programmes for dispatching purposes, as well as the definition of unit dispatching fees. Accordingly, Chapter 3 concerning metering aggregation is repealed, as it is now integrated in the TIS;
  • establishes that, as from August 1, 2009, the provisions of ARG/elt Resolution no. 178/08 regarding the treatment of deliveries for dispatching purposes shall be applied to the extent compatible with the TIS.

ARG/elt Resolution no. 130/09

With this measure, the Authority amended ARG/elt Resolution no. 99/08 (TICA) concerning the procedures and conditions for notification of delayed start of works on the construction of generation plants. More specifically, the resolution, in order to rationalise reporting flows concerning notification of delays in the construction of generation plants:

  • eliminates the requirement for transmission of notifications to the Authority;
  • extends the period for updating the state of progress report from 60 to 120 days;
  • establishes that the Authority shall periodically request information on the state of progress from grid operators.

ARG/elt Resolution no. 140/09

With this measure, the Authority amended Resolution no. 111/06, extending the time limits envisaged in the latter concerning the provisions governing the essential plants referred to under art. 3, paragraph 11, of Law no. 2 of January 28, 2009. The change came in response to a recommendation from Terna, which had underscored the need to extend the deadline envisaged in art. 63, paragraph 63.4, of Annex A of Resolution no. 111/06 to October 15 in order to solicit comments on a modified version of the proposed amendment of the Grid Code. The purpose of the changes is to clarify the procedures for applying the provisions of ARG/elt Resolution no. 52/09 concerning generation and pumping plants.

ARG/elt Resolution no. 148/09

With this measure, the Authority amended Chapter 4 of Annex A of AEEG Resolution no. 48/04 of March 27, 2004, containing measures for ensuring adequate generating capacity in the national electricity system, with effect for 2009.
The resolution confirmed the current transitional mechanism and set the fee for the remuneration for generating capacity availability for the period between January 1 and December 31, 2009, and in any event prior to introduction of the remuneration system established under art. 1 of Legislative Decree no. 379/03.

ARG/elt Resolution no. 154/09

With this measure, the Authority issued directives to Terna concerning the allocation of the difference between income and charges arising from the settlement of income statement items generated by settlement adjustments for 2008. Specifically, this balance was set aside to reduce charges acknowledged in Resolutions nos. 283/05, 305/06, 98/07, 128/07 and 257/07 incurred by the Company in participating in mechanisms for covering the costs of transit on foreign electricity grids relating to the cross-border trade in electricity (Inter TSO compensation - ITC Agreement).

ARG/elt Resolutions nos. 162/09 and 183/09

With these measures, the Authority intervened with regard to plants essential to electricity system security, in implementation of ARG/elt Resolution no. 52/09. Specifically, the Authority has:

  • established quantity and price reference parameters to be inserted into contracts that essential plant owners intend to sign with Terna in order to fulfil their offer obligations arising out of ownership of essential plants;
  • approved the contractual proposals made by Terna contained in art. 65 bis, paragraph 65 bis 5 of Annex A to Resolution no. 111/06, having verified their compliance with the measures contained in ARG/elt Resolution no. 162/09, and with the principles and purposes set out in art. 65 bis, Annex A to Resolution no. 111/06.

ARG/elt Resolutions nos. 179/09 and 195/09

With regard to the interconnectors pursuant to art. 32 of Law no. 99 of July 23, 2009, in ARG/elt Resolution no. 179/09 the Authority defined the transitional measures and associated fees which, in view of the end of the agency contract for the planning and design of interconnectors, and up until such time as these interconnectors enter into service, and in any event for a period not exceeding six years, enable the execution of any cross-border electricity provisioning contracts regarding supply to withdrawal points belonging to end customers selected by Terna. These transitional measures include the introduction of a virtual import service undertaken by one or more “shippers” selected on an annual basis by Terna through a competitive process.

ARG/elt Resolution no. 181/09

With this measure, the Authority issued a favourable assessment of the proposals to amend Chapters 3, 4 and 7 of the Grid Transmission, Dispatching, Development and Security Code, and associated Annexes A.22, A.23, A.26, A.31 and A.60 drafted by Terna – which had been put out to prior consultation to the operators concerned, and to the Users’ Consultative Committee pursuant to the Prime Minister’s Decree of May 11, 2004 – in implementation of the provisions contained in Law no. 2/09, the Decree of April 29, 2009 and ARG/elt Resolutions nos. 52/09 and 107/09. These documents, which follow the instructions contained in the above-mentioned measures with regard to reform of the dispatching services market and essential plants, went into effect on January 1, 2010.

VIS Resolutions nos. 168/09 and 171/09

With these measures, the Authority closed the preliminary enquiry launched under Resolution no. 177/07 regarding anomalies detected in the calculation of amounts of electricity withdrawn from the National Transmission Grid which were not correctly allocated to dispatch users, and has prompted the start of a formal investigation into Terna and a number of electricity distribution companies for the purpose of assessing whether or not Authority measures have been breached regarding the supply of transmission, dispatching and electricity metering services, and the imposition of administrative fines pursuant to art. 2, paragraph 20, letter c) of Law no. 481/95.

ARG/elt Resolution no. 194/09

With this measure, the Authority approved the France-Italy, Switzerland-Italy, Austria-Italy, Slovenia-Italy and Greece-Italy interconnection access rules for 2010 (the Auction Rules) and the regulatory framework governing application methods for managing interconnection network congestion for 2010 (Italian congestion management) drafted by Terna.

ARG/elt Resolution no. 201/09

With this measure, the Authority issued provisions regarding Terna's procedures for the forward provisioning of interruptible resources for 2010, pursuant to art. 30, paragraph 18 and art. 32, paragraphs 8 and 9 of Law no. 99 of July 23, 2009.
Specifically, the resolution provides for:

  • release of interruptibility allowances from March 2010 pursuant to art. 32, paragraph 8 of Law no. 99/09;
  • voluntary termination, allowing owners of interruptibility allowances to wind up current contracts with Terna valid until December 31, 2010, thereby reducing fees, from March 2010. This provision is a consequence of Law no. 99/09, which maintained current contracts with beneficiaries until February 2010;
  • methods for Terna to allocate interruptible capacity. Allocations must be made through descending price bidding, starting from the values cited in Resolution no. 289/06, with the exception of values corresponding to temporary release, for which previously-effective procedures shall apply.

ARG/elt Resolution no. 203/09

With this measure, the Authority updated pricing for the supply of transmission, distribution and electricity metering services to cover 2010. In particular, the Authority updated the grid transmission fees and grid transmission fee elements (respectively to 0.388 c€/KWh and 0.051 c€/KWh), partly to compensate for the elimination of transmission fees payable by generators pursuant to the provisions of art. 33, paragraph 5 of Law no. 99/09.

ARG/elt Resolution no. 204/09

With this measure, the Authority updated certain dispatching fees for 2010, including the fee covering costs payable for Terna's operations (DIS), which has been set at 0.0164 c€/kWh. For this item, the Authority further confirmed the adoption of an optional guarantee mechanism on levels of revenue payable to the transmission service under ARG/elt Resolution no. 188/08.

ARG/elt Resolution no. 213/09

With this measure, the Authority amended Resolution no. 351/07, which defines the remuneration incentive mechanisms for Terna S.p.A. to procure resources for the electricity dispatching service, identifying the quantity of resources procured by Terna on the Ancillary Services Market as the variable for measuring Terna's performance.
The resolution introduces a multi-year incentive scheme (covering the years 2010-2012), and does not include a ceiling on the overall incentive payable. Furthermore, the resolution confirms the main conditions – already applied in 2009 – with which Terna must comply in order to receive the bonus: maintain security standards, conduct effective monitoring, and implement the process for reviewing Ancillary Services Market offering selection algorithms.

ARG/elt Resolution no. 214/09

With this measure, the Authority modified for 2010 a number of measures pursuant to Resolution no. 111/06 regarding the supply of the dispatching service, and pursuant to ARG/elt Resolution no. 107/09 (TIS).
Among other things, the resolution:

  • updated for 2010 the ITC fee to cover expenses arising from Terna’s participation in mechanisms for covering the costs of transit on foreign electricity grids, at a rate of 0.014 c€/kWh;
  • called for application of a discount per consumption unit in the calculation of the imbalance fees (a threshold beneath which imbalances for consumption units are valued at the Day Ahead Market price), corresponding to 1% of the modified obligatory programme for withdrawals from the dispatching point for 2010;
  • extended through 2010 a number of provisional measures regarding, for example, deadlines for calculating and invoicing fees;
  • made certain amendments to the TIS.