1. TITRE 28/03/2012 NWE IG meeting – Amsterdam Schiphol NWE day-ahead price coupling – cost issues

2. . NRAs are currently elaborating a Letter of Comfort (LoC) in order to provide TSOs and PXs with some comfort regarding cost recovery and cost sharing.. Pre-condition: Solution needs to be transparent, reliable, easily extendible and cost-effective.. In any case, only auditable, efficient and necessary costs will be taken into account. Letter of Comfort (LoC) – Cost issues

3. . TSOs and PXs are asked to provide ACER and NRAs as soon as possible with a detailed budget regarding the design, implementation and operational costs of the NWE/PCR market coupling project.. This should include common and local cost.. Relevant and efficient incurred costs will be the basis for cost recovery in accordance with national tariff rules. LoC – Cost recovery

4. . Potential approaches » TSOs bear all costs (CWE model) » PXs bear all costs (Nordic market model) » Cost sharing between PXs and TSOs. NWE NRAs position on design and implementation costs » TSOs should bear part of the (local and common) costs. » Exact share of costs to be borne by TSOs and covered by tariffs shall be determined at national level by the respective NRAs. » After providing the detailed budget TSOs and PXs are invited to start discussion on this issue with respective NRAs. LoC – Cost sharing between TSOs / PXs

5. . NWE TSOs and PXs were asked to provide a proposal (cross-regional roadmap; NWE IG meeting Oct. 2011).. NRAs and ACER will address this topic in the Letter of Comfort. LoC – Cost sharing NWE/non-NWE

6. . Conditions for cost recovery: » Solution needs to be transparent, reliable, easily extendible and cost-effective. » only auditable, efficient and necessary costs will be taken into account.. NWE NRAs support PCR and are committed to take all necessary regulatory steps to reach goal of implementing NWE/PCR market coupling.. In case a considerable delay gets very likely at an early stage of the project, ACER and NRAs may consider alternative solutions. LoC – Regulatory issues

7. Thank you for your attention! www.acer.europa.eu