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Inter-TSO Compensation Mechanism

By O. Daxhelet and Y. Smeers


In the framework of the EU cross-border trade of electricity, international transactions may be carried by several network operators in different Member States. Operators hosting such transits incur additional costs on their local network. The European Commission has issued a proposal, regarding the Guidelines on an Inter-TSO Compensation Mechanism. We show that this mechanism may lead to nonsensical results

Year: 2005
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