Public consultation on Elia’s findings regarding the design of a scarcity pricing mechanism for implementation in Belgium

Topic

Elia launches a public consultation on a study containing Elia’s findings regarding the design of a scarcity pricing mechanism for implementation in Belgium. This study has been performed in the context of the 2020 balancing incentive on scarcity pricing.

The study includes, amongst others:

  • An assessment of a study by UCL CORE titled ‘Study on the general design of a mechanism for the remuneration of reserves in scarcity situations ’, both from a market design compatibility as well as from a legal perspective;
  • Elia’s identified alternative scarcity pricing proposal that is deemed feasible to be implemented in the short to medium term future, complemented by several open questions regarding the general desirability of this – and by extension any – scarcity pricing implementation for Belgium;
  • A high-level implementation plan for the possible (conditional to a positive answer regarding the above-mentioned desirability questions) realization of Elia’s identified alternative scarcity pricing proposal, elaborating on several implementation tracks. 

Elia publishes and distributes this study for consultation in order to collect stakeholders’ views on the study in general and to receive feedback on some specific questions regarding the desirability of a scarcity pricing mechanism for Belgium (cf. section 6.2 of the study). 

Elia will publish the final report of the study at the latest by 23th December 2020.

 

Context

Scarcity pricing is an administrative intervention in the energy market, ensuring that energy prices spike during scarcity events and reflect the value of energy without relying on supra-competitive bids of generators.

This study follows up on earlier study work that has been performed on scarcity pricing for Belgium by CREG, UCL CORE and Elia. Most notably:

Consultation period

Elia invites stakeholders to provide comments and suggestions on the consulted document via the online form below during the consultation period from Wednesday 30th September 2020 to Friday 30th October 2020.
 

Reply form

Please use the online form to respond to this public consultation:

This website uses cookies to provide you with an optimal browsing experience. Some cookies are strictly necessary for the operation of this website and cannot be rejected, while others are used for analytical/functional/targeting purposes and can be rejected, except for the cookies used to analyse the traffic. For more information, please consult ourCookie Policy . You can manage/change your cookie preferences at any time. If you do not manage your preferences, only the cookies which are strictly necessary will be accepted.