CID Methodology Finalized

Three-Layer Design for Congestion Income Distribution

Explanatory Note on Proposed Amendment

The Congestion Income Distribution (CID) methodology, a framework for distributing income generated from congestion charges within the European electricity market, has been finalized and implemented. The methodology, established by the CACM Regulation, consists of three layers:

1. Congestion income generated by exchanges within each Capacity Calculation Region (CCR) is distributed to the relevant transmission system operators (TSOs).

2. Congestion income resulting from cross-border exchanges between CCRs is divided among the TSOs involved in the respective exchange.

3. The remaining congestion income, known as "residual income," is distributed to all TSOs based on their respective share of total cross-border exchange capacity.

This methodology aims to ensure a fair and equitable distribution of congestion income among TSOs, promoting efficient and reliable electricity transmission across Europe. The implementation of the CID methodology is expected to further enhance the coordination and collaboration among TSOs in the European electricity market.