Acer, Power | The merger with the EU energy union is having an impact on the price of electricity in Norway

While electricity prices are historically high and volatile, there is intense pressure on the debate over what to do with the EU Energy Union and the energy agency ACER – (European Agency for Cooperation of Energy Regulators). The opportunity to exercise national political control is electricity.

Whatever one thinks about the EEA agreement or the EU – this is a very necessary discussion.

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Recently, Industriaksjonen has taken a joint LO-Union initiative An alliance should reduce the price of electricity, One of the slogans: “Outside the energy union of the ACER and the EU – continued energy cooperation with our neighbors”.

MDG politician and writer Øyvind Strømmen has a completely different view on the matter.

The opposition claims that the conspiracy is based on principles

In the postIf ACER is blamed for the price of electricity, there is really cause for concern, He argues that ACER has nothing to do with the price of electricity. “A gift is not strange since sovereignty is a part of cooperation,” Stroman writes, adding that ACER “is relatively technical and boring.”

He is certainly free to think so, but it is not correct to say more or less directly that the ACER opposition is based on a conspiracy theory.

Strommen believes that ACER only handles boring and necessary technologies. One explanation may be that as head of the European Central Bank, Mario Tracy will also use his powers when he is forced to kneel down in Greece during the euro crisis.

EU system technology is a nationwide management tool that is part of the EU Commission and the ACER Energy Agency. This will not result in less intrusion into national sovereignty.

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Created for national reasons

When ACER was founded in 2009, grid companies and national authorities took into account a number of national considerations, and the EU believed that power was not a priority for international connections. Headquartered in Ljubljana, Slovenia, ACER will ensure the implementation of the Fifth Independent Energy Union’s energy goal with the free flow of electricity (and gas) into the EU’s domestic market.

ACER has an overall share in both grid development and the power market. The EU’s third energy package contains rules for the production, transmission, distribution and supply of electricity in the integrated and competitive market. ACER adheres to the regulations and, for its part, can make binding decisions through the ESA and the Regulatory Authority for Energy (RME), which must be independent of the Norwegian authorities.

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It is normal for ACER to not accept the price of electricity. It is left to the market, which ensures that ACER flows freely according to EU rules. The possibility of regulating power exports for supply security or security reasons of competitive electricity prices will disappear.

ACER has been strengthened

The mechanisms for power flow and capacity allocation form the framework for the market, which leads to the electricity price we end up with. This is done through guidelines and network codes approved by the European Commission for the Production and Monitoring of ACER. ACER has strengthened its authority through four commission regulations. The EU’s fourth energy package, unspoken in the EEA, is a further renunciation of sovereignty.

If there is a disagreement between the regulators (equivalent to RME in Norway), it is up to the ACER to decide. The energy company has already made two decisions to bind Norway. ACER chose the most marketable way to regulate power flow. Following the complaint of the Finnish RME, the ACER must now decide on the conflict over Swedish restrictions on electricity exports. StateNet’s recent export restrictions on Sweden may be a matter for RME and ACER.

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If a new foreign cable is to be built, it will still be licensed by the Ministry of Petroleum and Energy, but the ACER connection is politically, economically and legally stressful. Contains a list of EU network development plans and special priority projects.

The controversial submarine cable North Connect from Norway to Scotland is one such priority project, and has received NOK 100 million support from the European Union, but as a result of Brexit, the project was delisted this November. However, the EU will give priority to other cable projects from Norway.

Acer determines the definition of associated costs

The ACER and the agency’s extended RME will oversee compliance with the EU’s network development plan and the implementation of priority projects. Violation of EU priorities requires legal action. The national licensing process is designed in many ways by EU rules and guidelines.

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Build rent is expected to increase significantly in the coming years. RME is the income limit for grid companies, which includes what they can rent. The so-called disruptive revenues have been subsidized by billions of kroner over the years. These are the additional revenue that StateNet receives when converting electricity with a price difference between the two regions. Previously, all disruptive proceeds could be used to reduce build rent. This position no longer exists.

The Border Trade Regulation, which is part of the ACER regulations, should use disruptive returns to ensure the availability of allocated capacity, and / or maintain or enhance the interconnectivity of network investments. Exceptions are defined.

Put it at the forefront: Expensive investments in foreign connections are offset by the disruptive returns that electricity consumers have previously received. The method of completeness, such as defining the associated costs, is determined by the ACER.