5. Border interconnection pricing
Transmission capacity on cross-border interconnections is allocated through auctions, the principles of which are laid down in the European network code (ENTSOG and ACER). Auctions are carried out with a reserve price corresponding to the regulated tariff for third-party access to the transmission network (ATRT), which means that the tariff paid at interconnection level can be higher than this ATRT tariff, but not lower. The exceptional revenues (in excess of costs) associated with these auctions do not constitute a profit for the network operators, who must pass them on to the consumer, to prevent them from being encouraged to cause congestion.
A large proportion of subscriptions are made under long-term contracts, which is logical if security of supply is to be guaranteed, but there are also half-yearly, quarterly and monthly subscriptions. In 2023, the proportion...
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Border interconnection pricing