The Regulatory Framework for Independent Aggregators

24 Pages Posted: 18 May 2021

See all articles by Tim Schittekatte

Tim Schittekatte

European University Institute - Robert Schuman Centre for Advanced Studies (RSCAS)

Vincent Deschamps

European University Institute

Leonardo Meeus

European University Institute; European University Institute - Robert Schuman Centre for Advanced Studies (RSCAS)

Date Written: May 2021

Abstract

The importance of independent aggregators has been acknowledged in the recently adopted EU Clean Energy Package (CEP). The CEP obliges all Member States to develop a regulatory framework to allow these players to enter the market, but it leaves many of the details of implementation to the national level. In this paper, we take stock of current practices in regulating the contractual relationship between the supplier and the independent aggregator. The actions of an independent aggregator can cause an imbalance in a supplier’s portfolio, and suppliers have also asked for a compensation payment for forgone revenues. We find that the first issue has been handled with a perimeter correction in most countries, while the second issue is more controversial. The need for a compensation payment has been challenged and many different compensation models are being tested. We distinguish between the regulated, the corrected, and the contracted model. We conclude that more guidance is needed at EU-level for convergence on a more harmonized approach.

Keywords: Demand Response, Independent Aggregation, Retail Markets, Innovation, Regulation

Suggested Citation

Schittekatte, Tim and Deschamps, Vincent and Meeus, Leonardo, The Regulatory Framework for Independent Aggregators (May 2021). Robert Schuman Centre for Advanced Studies Research Paper No. RSCAS 2021/53, Available at SSRN: https://ssrn.com/abstract=3846075 or http://dx.doi.org/10.2139/ssrn.3846075

Tim Schittekatte (Contact Author)

European University Institute - Robert Schuman Centre for Advanced Studies (RSCAS) ( email )

Villa La Fonte, via delle Fontanelle 18
50016 San Domenico di Fiesole
Florence, Florence 50014
Italy

Vincent Deschamps

European University Institute ( email )

Leonardo Meeus

European University Institute ( email )

Fiesole, Tuscany
Italy

European University Institute - Robert Schuman Centre for Advanced Studies (RSCAS) ( email )

Villa La Fonte, via delle Fontanelle 18
50016 San Domenico di Fiesole
Florence, Florence 50014
Italy

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