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Annual Report 2019

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Annual Report 2019 Annual report 2019 Commission for Electricity and Gas Regulation Annual report 2019 Table of contents 1. Foreword .................................................................5 3.1.4. Implementation of European regulations and cross-border issues .............30 3.1.4.1. Access to cross-border infrastructure ..........................30 2. Key legislative developments ................................................9 3.1.4.2. Correlation of the development plan for the transmission system with the development plan for the European network...............34 2.1. Key European legislative developments ..................................10 3.1.4.3. Implementation of European regulations CACM, FCA, EB, SO, ER and RfG.............................34 2.2. Key national legislative developments....................................11 3.2. Competition .......................................................40 2.2.1. Capacity payment mechanism .......................................11 3.2.1. Monitoring of wholesale and retail prices ................................40 2.2.2. Offshore wind energy . 12 3.2.1.1. Studies conducted by the CREG ..............................40 2.2.2.1. Introduction of a competitive tendering procedure ................12 3.2.1.2. Monitoring energy market prices for households and small 2.2.2.2. Payment system for farms connected to the MOG.................13 professional users .........................................42 2.2.3. Social tariffs for gas and electricity .....................................14 3.2.2. Monitoring of market transparency and openness.........................44 2.2.3.1. Upper limit of social tariffs ...................................14 3.2.2.1. Electrical power demande ...................................44 2.2.3.2. Extension of social tariffs ....................................14 3.2.2.2. Market share of wholesale generation ..........................44 2.2.4. Monitoring by the CREG of energy intermediaries ........................15 3.2.2.3. Energy exchange .........................................45 2.2.5. Amending the technical regulations ...................................15 3.2.2.4. REMIT ..................................................49 3.2.2.5. Charter of best practices for electricity and gas price comparison 3. The electricity market ......................................................17 websites ................................................49 3.1. Regulation .......................................................18 3.3. Consumer protection ..................................................49 3.1.1. Electricity generation ...............................................18 3.1.1.1. Electricity generation licences ................................18 3.4. Security of supply.....................................................50 3.1.1.2. Electricity generation in the North Sea ..........................18 3.4.1. Monitoring the balance between supply and demand . 50 3.1.1.3. Commissioning of the Modular Offshore Grid.....................21 3.4.2. Verifying the development plan for the transmission system .................51 3.1.1.4. Other verification and advisory tasks ...........................21 3.4.3. Operational security of the grid .......................................51 3.1.2. Electricity supply ..................................................21 3.4.4. Investment in cross-border interconnections .............................52 3.1.2.1. Supplying customers connected to the transmission system .........21 3.4.5. Measures to cover peak demand and deal with shortfalls...................53 3.1.2.2. Price caps ...............................................22 3.4.5.1. Strategic reserve ..........................................53 3.1.2.3. Trends in and fundamentals of electricity prices ...................23 3.4.5.2. Access to demand management ..............................53 3.1.3. Transmission and distribution ........................................23 3.4.5.3. Security of electricity supply for winter 2019-2020 ................54 3.1.3.1. Renewal of the designation, unbundling and certification of 3.4.5.4. Valorisation of the generation reserves necessary for the security of the transmission system operator .............................23 the system...............................................54 3.1.3.2. Corporate governance......................................24 3.1.3.3. Closed industrial networks and the traction power network ..........24 3.1.3.4. Technical operation ........................................24 3.1.3.5. System tariffs.............................................27 2 CREG Annual report 2019 4. The natural gas market.....................................................55 5. The CREG................................................................73 4.1. Regulation ...........................................................56 5.1. The CREG's Board of Directors and staff .................................74 4.1.1. Natural gas supply.................................................56 4.1.1.1. Federal natural gas supply licences ............................56 5.2. Gas and Electricity Advisory Board ......................................76 4.1.1.2. Price caps ...............................................57 4.1.1.3. Trends in and fundamentals of the natural gas price................58 5.3. General policy plan and comparative report on the objectives and 4.1.2. Transmission and distribution.........................................58 achievements of CREG ................................................78 4.1.2.1. Unbundling and certification of the transmission system operator . .58 4.1.2.2. Corporate governance......................................58 5.4. Handling questions and complaints ......................................78 4.1.2.3. Technical operation ........................................59 4.1.2.4. System tariffs and LNG tariffs.................................61 5.5. Presentations made by the CREG .......................................79 4.1.3. Cross-border issues and market integration .............................63 4.1.3.1. Access to cross-border infrastructure ..........................63 5.6. The CREG and other bodies ............................................82 4.1.3.2. Correlation between the investment plan for the transmission 5.6.1. The CREG and the European Commission ..............................82 network and the development plan for the European network ........63 5.6.2. The CREG within ACER.............................................83 4.1.3.3. Market integration . 63 5.6.3. The CREG within the CEER ..........................................85 5.6.4. European Gas Regulatory Forum......................................88 4.2. Competition .........................................................65 5.6.5. The European Electricity Regulatory Forum ..............................89 4.2.1. Monitoring of wholesale and retail prices ................................65 5.6.6. The Citizens' Energy Forum..........................................89 4.2.1.1. Studies conducted by the CREG ..............................65 5.6.7. The Energy Infrastructure Forum ......................................89 4.2.1.2. Monitoring energy market prices for households and small 5.6.8. The CREG and the other national regulators .............................90 professional users .........................................65 5.6.9. The CREG and the FSMA ...........................................90 4.2.2. Monitoring of market transparency and openness.........................65 5.6.10. The CREG and Parliament . 90 5.6.11. The CREG and the regional regulators ...........................91 4.3. Consumer protection ..................................................65 5.6.12. The CREG and the competition authorities ........................91 5.6.13. The CREG and Belgian universities ..............................91 4.4. Security of supply.....................................................65 4.4.1. Monitoring the balance between supply and demand . 65 5.7. The finances of the CREG ...............................................92 4.4.2. Monitoring transmission system operator investment plans .................69 5.7.1. Federal contribution................................................92 4.4.3. Forecasts on future demand, available reserves and additional capacity ........70 5.7.2. Funds .......................................................94 4.4.4. Covering peak offtake ..............................................71 5.7.3. Accounts 2019 ...................................................95 5.7.4. Auditor’s report on the annual accounts for the year ended 31 December 2019...100 5.8. List of acts drawn up by CREG in 2019...................................102 CREG Annual report 2019 3 LIST OF TABLES LIST OF FIGURES 1 Energy offtake by customers connected to the federal transmission system, 2007 to 1 New marine areas for the granting of domain concessions for the construction and operation of 2019 inclusive . 22 facilities for the generation and storage of energy from renewable sources . 19 2 Average unweighted imbalance tariff during the period 2007-2019 . 26 2 Change in installed capacity of offshore wind power per wind farm between April 2009 and 3 Trends in the tariff burden (not including connection, PSO tariffs, surcharges and VAT) December 2019 . 20 for users of the transmission system during the period 2013-2019 . 28 3 Net generation of offshore green electricity per wind farm between April 2009 and 4 Average export and import capacity
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