Regulators believe that market integration and the creation of a single electricity market will allow for a more efficient use of resources and consequently lower prices, whilst improving grid security and services to final consumers. Within that context, incentive schemes to promote cross-border trade in electricity can help ensure that network operators are adequately incentivised to increase efficiency and foster market integration. This paper focuses on two main elements of market integration, namely:

• Maximising the use of existing interconnectors (e.g. increasing available capacity to the market  where possible); and
• Efficient use of existing interconnector capacity (e.g. efficient capacity allocation and management).

This call for evidence is intended as a fact-finding exercise to further develop ERGEG’s analysis. The paper addresses the issue of designing incentive schemes to promote cross-border trade. ERGEG considers the issue of incentives to promote cross-border trade as a long term goal. In the short and medium term, the focus will be on the design of good indicators which reflect the efficiency of cross-border trade.

CEER invites all stakeholders interested in cross-border trade issues to respond to this call for evidence, both in general and in relation to the questions in Section 1.4 of the report.

Interested parties are invited to submit comments by 29 March 2010 and these should be sent by e-mail to:  incentive_schemes@ergeg.org.

Following the end of the public consultation period, ERGEG will publish all comments and replies to questions received from stakeholders.  If a respondent would like ERGEG to treat their contribution with confidentiality then this must be explicitly mentioned in their reply. If possible, confidential information should be provided as a separate annex, so that the main document may  be published. Unless marked as confidential, all responses will be published by placing them on the ERGEG website: http://www.energy-regulators.eu.  

Any questions relating to this document should in the first instance be directed to:

Mrs. Fay Geitona
CEER Secretary General
Email: fay.geitona@ceer.eu
Fax +32 2 788 73 50
Tel. +32 2 788 73 30