Decision No: 72/2022

Date: 18/03/2022

Subject: 
Publication and Entry into Force of Transmission and Distribution Rules - Edition 5.3.0 and Trading and Settlement Rules - Edition 2.2.0
 
In the meeting dated 18 March 2022 No. 17/2022, the following documents were submitted to the Top Management of CERA:
  •  The letter of CERA to the Transmission System Operator-Cyprus, dated 10 March 2022, File No. 08.01.11.02/352/2022,
  • The internal note of the Manager of the Office of CERA No. 185/2022 concerning “Recovery and Resilience Plan of Cyprus – C2/1-R4 Regulatory Framework of Energy Storage – Resulting action of CERA”, dated 17 March 2022, and
  • The letter of the Transmission System Operator-Cyprus, dated 17 March 2022, under the reference No. ΔΑ12/1030.2.18/220816, File No. 08.01.11.02/1118/2022, concerning “Recovery and Resilience Plan – application of Milestone C2.1R4”.
The members of the Top Management of CERA, taking due account of:
  • The provisions of the Law Regulating the Electricity Market of 2021 (Law 130(I)/2021) and specifically the provisions:
    •  of Article 88 which concerns the entry into force of the amendments to the Transmission Rules and which sets out that none of the proposed amendments to the Transmission Rules by the Transmission System Operator-Cyprus (TSOC) shall enter into force, until it is approved and published by CERA,
    • of Article 92 which concerns the entry into force of the amendments to the Distribution Rules and which sets out that none of the proposed amendments to the Distribution Rules by the Distribution System Operator (DSO) shall enter into force, until it is approved and published by CERA,
    • of Article 94(7) which concerns Trading and Settlement Rules and which sets out that, subject to the provisions of subparagraph 1 of Article 93, the proposed amendments by TSOC shall enter into force on the date of their publication in the Official Gazette of the Republic, and
    • of Article 142(3) which sets out, among others, that Regulatory Decisions issued pursuant to the provisions of the Laws Regulating the Electricity Market of 2003 to 2018, shall continue to be in force under the terms they were issued until the issuance of new ones based on the provisions of this Law.
  • The Regulatory Decision No. 01/2017 (R.A.A. 34/2017) “on the Application of a Binding Schedule for Full Commercial Operation of the new Electricity Market Model”,
  • The Regulatory Decision No. 03/2019 (R.A.A. 224/2019) “on the Establishment of Basic Principles of Regulatory Framework for the Operation of Electricity Storage Facilities Upstream the Meter in the Wholesale Electricity Market” which includes, among others, instructions to TSOC to proceed where necessary to all the necessary amendments to TDR, so that participation without distinctions of electricity storage facilities upstream the meter in the operation of Electricity Market is possible,
  • CERA’s decision No. 386/2021, dated 29 December 2021, regarding the approval of amendments proposed to the Transmission and Distribution Rules- Edition 5.3.0 by Transmission System Operator-Cyprus,
  • CERA’s decision No. 04/2022, dated 5 January 2022, regarding the approval of amendments proposed to the Trading and Settlement Rules- Edition 2.2.0 by Transmission System Operator-Cyprus, and
  • The Implementing Decision of the Council on the approval of the assessment of the Recovery and Resilience Plan of Cyprus, dated 20 July 2021 and more specifically the milestone [CY-C[CE.1]-R[R4]-M[23]] with title “Amendment of the Transmission and Distribution Rules (TDRs) and Trading and Settlement Rules (TSRs)”.
The Members of the Top Management of CERA, after having carefully studied all documents and details before them found that:
  • In the scheduled meeting (teleconference) with the European Commission on March 10, 2022, discussion was focused on the Recovery and Resilience Plan (RRP) and more specifically on the progress of the measures and actions linked to the first payment application and important comments of the European Commission were placed regarding the milestone [CY-C [C2.1]-R[R4]-M[23]] with title “Amendment of the Transmission and Distribution Rules (TDRs) and Trading and Settlement Rules (TSRs)” for which CERA has been appointed as Implementing Body.
  • As it results from the comments of European Commission on the Summary Cover Note related to milestone [CY-C [C2.1]-R[R4]-M[23]] in the framework of control of implementation of this milestone, it was found that the fact that another action by CERA for the entry into force of such Transmission and Distribution Rules and Trading and Settlement Rules will be pending in the future is not accepted by the European Commission. More specifically, for the compliance with the requirements of the Recovery and Resilience Plan it is found that such rules must enter into force immediately by their publication in the Official Gazette of the Republic, and their application must be determined in advance, as in this stage actions are required by the Transmission System Operator-Cyprus to be able to apply these Rules.
The members of the Top Management of CERA assessed that:
  • The approved Transmission and Distribution Rules- Edition 5.3.0 and the approved Trading and Settlement Rules - Edition 2.2.0 must enter into force immediately, because their entry into force is considered necessary for the successful completion of this milestone and consequently for the provision of the first payment from Recovery and Resilience Plan. However, CERA separates entering into force and putting into effect these Rules, taking into account the date on which the Transmission System Operator-Cyprus declared that he will have completed the necessary changes in the Market Operation System so that he can support the application of the provisions on electricity storage.
  • The Transmission System Operator-Cyprus by its letter dated 17 March 2022 stated to CERA that he will be able to apply the Transmission and Distribution Rules – Edition 5.3.0 and the Trading and Settlement Rules – Edition 2.2.0 on the third four-month period of the year 2024.
The Members of the Top Management of CERA, after taking into account all documents and details and based on those mentioned above:
 
DECIDED AS FOLLOWS
 
  1. That CERA proceeds immediately to the publication of relevant Announcement in the Official Gazette of the Republic of the Transmission and Distribution Rules – Edition 5.3.0 as they were approved by CERA’s decision No. 386/2021, dated 29 December 2021, which marks their entry into force. However, such publication must indicate that Transmission and Distribution Rules - Edition 5.3.0 shall apply as from 30 September 2024.
  2. To request from the Transmission System Operator-Cyprus to proceed immediately to the publication of a relevant Announcement in the Official Gazette of the Republic of Trading and Settlement Rules – Edition 2.2.0 as they were approved by CERA’s decision No. 04/2022, dated 5 January 2022, a fact which marks their entry into force. However, such publication must set out that the Trading and Settlement Rules - Edition 2.2.0 shall apply as from 30 September 2024.
 
 
The full text of TDRs Edition 5.3.0 and of TSRs Edition 2.2.0 is published on the website of TSOC:
Trading and Settlement Rules 2.2.0
Transmission and Distribution Rules 5.3.0