Contributing do development of IEM (Internal Electricity Market) European transmission system operators associated in ETSO agreed upon and signed in 2002 (eight TSOs) an Inter – TSO compensation agreement (“ITC” old name “CBT”). The main goal of this agreement was replacing cross border tariffs between ITC parties to this Agreement, compensating TSOs costs incurred as a result of hosting cross border energy flows thus increasing efficiency in IEM.
PSE S.A. is a party to this agreement since July 2004. In 2008-2009 the agreement was signed by TSOs from 33 countries. Since January 2008 ETSO has been working extensively to find a long-term ITC solution. In early 2009 the European Commission issued a Consultation Document on the Inter-TSO compensation mechanism and on harmonization of transmission charging. ETSO replied to this consultation document presenting its compromise proposal. In late 2009 European Commission issued Draft … guidelines establishing a mechanism for the compensation of transmission system operators for the costs of hosting cross border flows of electricity and a common regulatory approach to transmission charging, which were in line with ETSO proposal and the document was submitted for consultation. New ITC agreement for period 01.01.2010 – 31.12.2010 was signed by 41 TSOs from 34 countries (among them is PSE S.A.) associated in ENTSO-E and is in line with provisions of the draft guidelines. As in the first CBT agreement, the costs resulting from hosting cross border flows are settled directly between TSOs, i.e. there are no charges for cross border energy exchanges to be paid by market participants.