SEE Administration services for ITC/CBT mechanism

Based on the agreements reached at Athens Forum meetings and, in particular, during the 26-27 October 2004, the South-eastern Europe (SEE) TSOs (Albania, Bosnia & Herzegovina, Bulgaria, Macedonia, Montenegro, Romania and Serbia) have implemented, under the coordination of ETSO, the Inter-TSO Compensation for Cross Borde Trade (ITC CBT) mechanism in order to compensate the use of national transmission systems by cross-border trade in SEE region in 2005.

The SEE ITC mechanism follows the basic principles of the ITC mechanism applied by ETSO in most of the European Union as well as in Norway and Switzerland.

The routines for the SEE ITC Agreement can be divided up into three periods, exante preparations, monthly settlement, and final settlement.

Using the above data, EKC, as Data Administrator (since December 2003) calculated an ex-ante spread sheet, which shows the estimated cost claim, contribution to the fund, and net result for each SEE ITC Party as well as the total amounts.

EKC acted as data administrator and has also been given this role for the SEE ITC Agreement, for which also performs settlement calculations. Each month the parties send data to the Data Administrator which initiates the monthly settlement process. Figures collected during the year are finally checked to see whether over funding or under funding has occurred. If so an additional settlement procedure is performed to correct this. In addition any necessary capping of the total fund is also taken care of.

Type of services provided:

• Calculations of Horizontal Network Costs,
• Estimation of Annual Horizontal Network Cost,
• Estimation of hourly and yearly load flow on interconnections tie lines,
• Estimation of ITC fund and the structure of the fund,
• Calculation of monthly and yearly final net position in ITC process.