On 18 May 2026, the European Union Agency for the Cooperation of Energy Regulators (ACER) published a guidance document on the sharing of costs and benefits of electricity network infrastructure arising from cross-border trade. The document aims to provide a common methodology for national regulators and transmission system operators to allocate costs and benefits of cross-border electricity infrastructure projects, impacting grid operators, national energy regulators, and electricity consumers across the EU.
The publication, titled "Sharing of costs and benefits of electricity network infrastructure arising from cross-border trade," is a non-binding guidance document. It proposes a framework for identifying and quantifying costs and benefits of cross-border electricity interconnectors and internal grid reinforcements that enable cross-border trade. The guidance suggests that cost allocation should reflect the distribution of benefits among member states, with the goal of facilitating investment in infrastructure that supports the EU's internal energy market and decarbonisation targets.
Policy orientations and trade-offs
The document outlines several principles for cost-benefit analysis, including the need to consider both direct and indirect benefits, such as increased security of supply, integration of renewable energy, and reduced wholesale electricity prices. It also addresses the challenge of allocating costs when benefits are unevenly distributed across countries. The guidance recommends using a multi-criteria approach that weighs different types of benefits, rather than relying solely on a single metric like congestion income. This approach could lead to more equitable cost-sharing but may also increase complexity for regulators.
Impact on stakeholders
For transmission system operators (TSOs), the guidance provides a clearer framework for proposing cost allocation in cross-border projects, potentially reducing regulatory uncertainty and speeding up investment decisions. National energy regulators will need to adopt or adapt the methodology, which may require additional analytical capacity. Electricity consumers could benefit from lower prices and improved security of supply if the guidance leads to more efficient infrastructure investment. However, if costs are allocated to countries that receive fewer direct benefits, there may be political resistance from member states.
Expected institutional follow-up
ACER's guidance is not legally binding, but it is expected to influence national regulatory decisions and future EU legislation. The European Commission may reference the document in upcoming reviews of the Trans-European Networks for Energy (TEN-E) regulation or the internal electricity market rules. National regulators are encouraged to apply the methodology voluntarily, and ACER may monitor its uptake and effectiveness.
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