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Annual Report 2018

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Annual Report 2018 Annual report 2018 Commission for Electricity and Gas Regulation Annual report 2018 Table of contents 3.1.4.2. Correlation of the development plan for the transmission 1. Foreword ....................................................5 system with the development plan for the European network ..32 3.1.4.3. Flow-based market coupling.............................32 2 Key national legislative developments...................................9 3.1.4.4. The use of Dynamic Line Rating in the capacity calculation ....33 3.1.4.5. The implementation of network codes ....................33 2.1. Amending the legal framework for the strategic reserve................10 3.1.4.6 The System Operating Policy regarding compensation between 2.2. Allocation of past balances of the federal contribution .................11 Elia and Nemo Link....................................35 2.3. Amending the federal support mechanism for offshore wind energy .....11 3.1.4.7. The results of the day-ahead market in November 2017 .......35 2.4. Procedure for the domain concessions for the offshore installations of 3.1.4.8. The day-ahead wholesale market from 1 to 7 October 2018 ..35 electricity transmission ..........................................12 3.1.4.9. Setting up and storing the common network models .........36 2.5. Amending the technical regulations ................................12 3.1.4.10. Determining the synchronous zone of continental Europe . 36 3.2. Competition ...................................................36 3 The electricity market................................................13 3.2.1. Monitoring of wholesale and retail prices .........................36 3.2.1.1. CREG studies conducted in 2018 .........................36 3.1. Regulation ...................................................14 3.2.1.2. Monitoring energy market prices for households and 3.1.1. Electricity generation .........................................14 small-scale professional users ...........................40 3.1.1.1. Electricity generation licences ...........................14 3.2.2. Monitoring of market transparency and openness . 44 3.1.1.2. Electricity generation in the North Sea.....................14 3.2.2.1. Electrical power demand ...............................44 3.1.1.3. Analysis of the support for offshore wind energy.............16 3.2.2.2. Market share of wholesale generation . 45 3.1.1.4. Commissioning of the Modular Offshore Grid ...............16 3.2.2.3. Energy exchange .....................................46 3.1.2. Electricity supply ............................................17 3.2.2.4. Transparency, REMIT and financial instruments .............49 3.1.2.1. Supplying customers connected to the transmission system ...17 3.2.2.5. Charter of best practices for electricity and gas price 3.1.2.2. Price caps ...........................................18 comparison websites ..................................50 3.1.2.3. Trends in and fundamentals of electricity prices .............18 3.3. Consumer protection ............................................50 3.1.3. Transmission and distribution . 19 3.4. Security of supply ...............................................51 3.1.3.1. Renewal of the designation, unbundling and certification of the 3.4.1. Monitoring the balance between supply and demand . .51 transmission system operator ...........................19 3.4.2. Verifying the development plan for the transmission system . .52 3.1.3.2. Corporate governance .................................19 3.4.3. Operational security of the grid .................................52 3.1.3.3. The closed industrial networks and the traction power network .19 3.4.4. Investment in cross-border interconnections ......................53 3.1.3.4. Technical operation ....................................19 3.4.5. Measures to cover peak demand and deal with shortfalls . 54 3.1.3.5. System tariffs ........................................24 3.4.5.1. Strategic reserve: winter periods 2018-2019-2020 ...........54 3.1.4. Cross-border issues..........................................28 3.4.5.2. Access to demand management .........................55 3.1.4.1. Access to cross-border infrastructure......................28 3.4.5.3. Security of electricity supply for winter 2018-2019 ...........56 2 CREG Annual report 2018 4 The natural gas market...............................................57 5. The CREG ...................................................75 4.1. Regulation ...................................................58 5.1. CREG's Board of Directors and staff ................................76 4.1.1. Natural gas supply ...........................................58 5.2. Gas and Electricity Advisory Board ................................78 4.1.1.1. Federal natural gas supply licences . 58 5.3. General policy plan, comparative report on the objectives and 4.1.1.2. Price caps ...........................................59 achievements of the CREG, and the memorandum of the CREG for 4.1.1.3. Trends in and fundamentals of the natural gas price ..........59 the attention of the federal elections ...............................80 4.1.2. Transmission and distribution . 59 5.4. Handling questions and complaints ................................80 4.1.2.1. Unbundling and certification of the transmission system 5.5. Presentations made by the CREG ..................................81 operator ...........................................59 5.6. The CREG and other authorities ...................................85 4.1.2.2. Corporate governance .................................60 5.6.1. The CREG and the European Commission ........................85 4.1.2.3. Technical operation ....................................61 5.6.2. The CREG within ACER ......................................85 4.1.2.4. System and LNG tariffs ................................63 5.6.3. The CREG within CEER......................................88 4.1.3. Cross-border issues and market integration . .65 5.6.4. European Gas Regulatory Forum...............................91 4.1.3.1. Access to cross-border infrastructure......................65 5.6.5. European Electricity Regulatory Forum ..........................91 4.1.3.2. Correlation between the investment plan for the transmission 5.6.6. Citizens' Energy Forum ......................................92 network and the development plan for the European network ..65 5.6.7. Energy Infrastructure Forum . .92 4.1.3.3. Market integration ....................................65 5.6.8. The CREG and the other national regulators ......................92 4.2. Competition ...................................................67 5.6.9. The CREG and the FSMA ....................................93 4.2.1. Monitoring of wholesale and retail prices .........................67 5.6.10. The CREG and Parliament ....................................93 4.2.1.1. CREG studies conducted in 2018 .....................67 5.6.11. The CREG and the regional regulators ..........................93 4.2.1.2. Monitoring energy market prices for households and small 5.6.12. The CREG and the competition authorities .......................94 professional users.....................................67 5.6.13. The CREG and Belgian universities .............................95 4.2.2. Monitoring of market transparency and openness . .67 5.7. The finances of the CREG.........................................95 4.3. Consumer protection.............................................68 5.7.1. Federal contribution..........................................95 4.4. Security of supply ...............................................68 5.7.2. Funds ...................................................97 4.4.1. Monitoring the balance between supply and demand . .68 5.7.3. Accounts 2018..............................................99 4.4.2. Monitoring TSO investment plans . 71 5.7.4. Auditor’s report on the annual accounts of the Commission for 4.4.3. Forecasts on future demand, available reserves and additional capacity. 72 Electricity and Gas Regulation (CREG) for the year ended 31 4.4.4. Covering peak offtake ........................................73 December 2018 ............................................104 5.8. List of acts drawn up by CREG in 2018 ...........................106 CREG Annual report 2018 3 LIST OF TABLES LIST OF FIGURES 1 Energy offtake by customers connected to the federal transmission system ....................17 1 Change in offshore wind power installed capacity per wind farm ............................... 15 2 Average unweighted imbalance tariff ...................................................23 2 Net generation of offshore green electricity per wind farm ................................... 16 3 Trends in the tariff burden (not including connection, PSO tariffs, surcharges and VAT) 3 Average unweighted imbalance tariff and BELPEX DAM price ................................. 24 for users of the transmission system ..................................................26 4 Availability and use of interconnection capacity .............................................. 29 4 Average export and import capacity and average net nomination per year .....................29 5 Impact of the guaranteed availability of 20% of the thermal capacity of the critical branches 6 Wholesale market shares in electricity generation capacity ................................45 on trade between different bidding zones .................................................. 31 7 Wholesale market shares in power generated ............................................45
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