Agency for the Cooperation of Energy Regulators : annual activity report 2014.
Date: 2016-01-29
Institutions: European Union Agency for the Cooperation of Energy Regulators
Subjects: European Union Agency for the Cooperation of Energy Regulators, activity report, energy policy, operation of the Institutions

Agency for the Cooperation 
of Energy Regulators
Annual Activity 
Report 2014

Annual Activity Report  2014Pursuant to FR 1605/2002, FFR No 12711/20131 Commission Delegated Regulation (EU) No 1271/2013 of 30 September 2013 on the framework financial regulation for the bodies referred to in Article 208 of Regulation (EU, Euratom) No 966/2012 of the Euro-pean Parliament and of the CouncilThis report is available in English.

Luxembourg: Publications Office of the European Union, 2015

ISBN 978-92-95083-21-9

ISSN 1977-6403

doi: 10.2851/828061

© Agency for the Cooperation of Energy Regulators, 2015

Reproduction is authorised provided the source is acknowledged.

Printed in Slovenia

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Table of Contents

Administrative Board’s analysis and assessment  
Foreword by the Director 

INTRODUCTION TO THE AGENCY 

Mission 
Tasks 
Organisation 

PART 1 – POLICY ACHIEVEMENTS OF THE YEAR 

Statement of the Chair of the Board of Regulators  
Regulatory activities 
1.1 Electricity Framework Guidelines and Network Codes 
1.2 Gas Framework Guidelines and Network Codes 
1.3 Cross-sector issues (electricity and gas) 
1.4 TSO cooperation 
1.5 Guidelines for trans-European energy infrastructure 
1.6 Activities which are subject to specific conditions 
1.7 Wholesale market monitoring – REMIT 
1.8 Regulatory cooperation 
1.9 Stakeholder involvement 

PART 2a – MANAGEMENT 
2.1 Administrative Board 
2.2 Institutional relations and communication 
2.3 Budgetary and financial management  
2.4 Human Resources management (HR) 
2.5 Assessment by management  
2.6 Budget implementation tasks entrusted to other services and entities 
2.7 Other administrative tasks  

2.7.1 The Agency’s premises 
2.7.2 ICT infrastructure 

2.8 Assessment of audit results during the reporting year 

2.8.1 Internal Audit Service (IAS) 
2.8.2 European Court of Auditors (ECA) 

2.9 Follow up of recommendations and action plans for audits  

2.9.1 Recommendations issued by the IAS 
2.9.2 Recommendations issued by the ECA 

2.10 Follow up of observations from the discharge authority  

PART 2b – EXTERNAL EVALUATIONS  

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3.1 Risk management 
3.2 Compliance and effectiveness of Internal Control Standards  

Part 3 – ASSESSMENT OF THE EFFECTIVENESS OF THE INTERNAL CONTROL SYSTEMS   89
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ICS 2: Ethical and Organisational Values 
ICS 3: Staff Allocation and Mobility 
ICS 4: Staff Evaluation and Development 
ICS 10: Business Continuity 
ICS 12: Information and Communication 
ICS 15: Assessment of ICS 

Conclusions 

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Part 4 – MANAGEMENT ASSURANCE 

4.1 Review of the elements supporting assurance 
4.2 Reservations (if applicable) 

Part 5 – DECLARATION OF ASSURANCE 

Part 6 – ANNEXES 

ANNEX I: The Agency’s structure 
ANNEX II: AGENCY WORKING GROUPS AND TASK FORCES 
ANNEX III: Statistics on financial management  
ANNEX IV: Organisational chart 
ANNEX V: Establishment plan  
ANNEX VI: Results of the 2014 job screening exercise  
ANNEX VII: Financial accounts 

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Administrative Board’s analysis and assessment 

The Administrative Board examined the Annual 
Activity Report for 2014 and, taking into consid-
eration that: 
(cid:116)(cid:1) the policy and the operational achievements 

were strategically aligned; 

(cid:116)(cid:1) the Agency met its key policy and operational 

objectives;

(cid:116)(cid:1) the  Agency’s  key  achievement  in  2014  was 
the progress in the completion of the internal 
electricity and gas markets, in the implemen-
tation of REMIT and the TEN-E Regulation;
(cid:116)(cid:1) the  resources,  although  scarce  and  inad-
equate in REMIT, were used by the Agency in 
line with the activities developed in the Work 
Programme; 

(cid:116)(cid:1) on performance indicators, overall the targets 

were met; 

(cid:116)(cid:1) the  internal  control  and  management  sys-

tems were working adequately; 

(cid:116)(cid:1) the  building  blocks  of  assurance  (internal 

controls, evaluations) were in place;

(cid:116)(cid:1) the main risk threatening the achievement of 
key  objectives  was  identified  and  mitigating 
measures taken, especially with respect to the 
resources  necessary  for  the  implementation 
of REMIT;

it concluded that: 

The  Agency  successfully  implemented 
the Work  Programme  2014  and  that  the 
resources  assigned  to  the  activities  de-
scribed in the report were used for their 
intended purpose in accordance with the 
principle of sound financial management, 
and underlined the need for adequate re-
sources for the implementation of REMIT. 

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Foreword by the Director

I  am  pleased  to  present  the  Annual  Report  of 
the Agency for the Cooperation of Energy Reg-
ulators  for  2014  (‘the  Agency’).  It  presents  the 
activities that the Agency performed last year, 
as well as the objectives which were achieved. 
The  Agency’s  2014  Work  Programme  focused 
on four areas of activity: the integration of the 
internal  energy  market  (IEM);  the  monitoring 
of  the  European  wholesale  energy  market  to 
detect and deter market abuse; the infrastruc-
ture challenge to develop the European energy 
networks  efficiently;  and  the  identification  of 
future  challenges,  including  those  related  to 
the integration of renewables into the electric-
ity  system.  Despite  a  level  of  resources  clearly 
inadequate  to  its  mandate,  which  forced  the 
Agency  to  significantly  revise  its  Work  Pro-
gramme in March 2014 with the deprioritisation 
of a number of activities, progress was achieved 
in all four activity areas.

With respect to the market integration process, 
2014 was the target year for the completion of 
the Internal Market in electricity and gas, as set 
by  the  Council  of  the  EU  in  2011.  As  in  previ-
ous  years,  this  market  integration  process  has 
progressed  in  two  parallel  strands.  Firstly,  the 
formal rule-making process, with the develop-
ment  of  Framework  Guidelines  and  Network 
Codes. The last of the Framework Guidelines in 
the eight priority areas identified by the Com-
mission in 2011 was delivered by the Agency at 
the end of 2013 and no additional Framework 
Guidelines  have  been  identified  as  immediate 
priorities  since  then.  Therefore,  in  2014  the 
focus  of  the  Agency  (and  of  the  other  parties 
involved  in  this  process,  notably  the  Commis-
sion  and  the  European  Networks  of  Transmis-
sion  System  Operators)  was  on  progressing 
the  Network  Codes,  with  three  of  them  being 
recommended by the Agency for adoption last 
year (bringing the total to 11 out of the planned 
14  Network  Codes)  and  an  Agency  opinion 
being  issued  on  a  fourth  one.  Secondly,  the 
Agency has been working with stakeholders to 
promote  the  early,  voluntary  implementation 
of the Network Code provisions, so that market 
integration can proceed on the ground and the 
benefits can be delivered to energy consumers 
ahead  of  the  rules  becoming  binding.  In  this 
respect notable progress was achieved last year 
in  the  integration  of  the  day-ahead  electricity 
market  with  the  coupling,  in  February,  of  the 
Central-West  Europe  region,  the  Nordic  region 
and  the  Baltic  region,  with  the  South-West 
Europe  region  joining  in  May.  At  that  point, 
a  single  day-ahead  market,  where  the  same 

platform  determines  prices  in  the  different 
jurisdictions  and  flows  across  borders,  was  es-
tablished from the Strait of Gibraltar to the Bar-
ents Sea, covering 17 jurisdictions representing 
more than 75% of the European Union in terms 
of electricity consumption. Since then this mar-
ket-coupled region has been further extended 
to the Central-South Europe region in February 
this  year.  At  the  same  time,  in  Central-Eastern 
Europe,  the  coupling  of  the  Czech,  Hungarian 
and Slovak markets was extended in November 
2014 to Romania. While this regional market is 
still separate from the larger region, it operates 
using  the  same  market  platform,  facilitating 
further integration in the future.

With respect to the other segments of the elec-
tricity market, progress was also achieved in the 
long-term  timeframe  and  in  the  development 
of flow-based capacity calculation, even though 
in both cases decisive milestones envisaged in 
2014  were  delayed.  Instead,  very  disappoint-
ingly, further delays occurred in the process for 
the integration of the intra-day market. Despite 
the  Agency  issuing  an  informal  opinion,  upon 
the request of the project parties, on the choice 
of the platform vendor in May 2013, by the end 
of 2014 the contract with this vendor was still to 
be signed. This delay is particularly unfortunate 
as the intra-day market is becoming more and 
more important with the increased penetration 
of renewable-based generation in the electric-
ity system.

In  gas,  following  the  launch  of  the  Prisma 
capacity  booking  platform  in  April  2013,  two 
other  platforms  emerged  in  2014:  the  GSA 
platform,  for  the  allocation  of  capacity  on 
the  Polish  borders,  and  the  Regional  Booking 
Platform,  for  the  allocation  of  capacity  on  the 
Hungarian-Romanian border. At the same time, 
to identify measures to promote improvements 
in the functioning of gas markets in Europe, in 
2014 the Agency conducted, with the involve-
ment of stakeholders, a review of the Gas Target 
Model,  a  blueprint  for  the  Internal  Gas  Market 
originally  developed  by  CEER  in  2011.  The 
results  of  this  review,  including  a  revision  of 
the gas wholesale market criteria and tools for 
regional market integration, were presented in 
January 2015.

In  the  wholesale  market  monitoring  area,  in 
2014,  the  Agency  continued  to  develop  the 
procedures  and  IT  platforms  to  support  the 
collection and analysis of trade and fundamen-
tal  data,  as  envisaged  in  Regulation  (EU)  No 

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with  the  involvement  of  stakeholders  through 
two  public  consultations,  European  regulators 
identified the challenges facing the energy sec-
tor  over  the  next  ten  years  and  proposed  the 
necessary policy and regulatory responses. The 
Agency, CEER and NRAs have since been work-
ing to implement the regulatory actions identi-
fied in their respective areas of responsibility.

The significant amount of work which the Agen-
cy has delivered in 2014, including the regular 
contact  with  EU  institutions  and  the  continu-
ous stakeholder engagement presented in this 
Report, would not have been possible without 
the  relentless  dedication  of  my  colleagues  in 
the  Agency,  the  important  support  of  NRAs 
through  their  contributions  to  the  Agency’s 
Working Groups, the backing of the Administra-
tive Board (AB) and the constructive discussions 
with  and  input  from  the  Board  of  Regulators 
(BoR). To all of them goes my deepest gratitude. 
I would also like to gratefully acknowledge the 
attention and support reserved for the Agency 
by the European Parliament, notably by its ITRE 
Committee, and by the Directorate-General for 
Energy in the European Commission. The pros-
pect for the future is equally, if not more, chal-
lenging, but I am confident that, if the Agency 
is given the necessary human and financial re-
sources, it will be able to continue to deliver on 
its  mandate  and  play  its  role  in  implementing 
the Energy Union strategy and deliver tangible 
benefits to European energy consumers.

Alberto Pototschnig 
Director of the Agency for the Cooperation of 
Energy Regulators

1227/2011 (REMIT).  In  June 2014 the develop-
ment  of  the  Centralised  European  Register  of 
Energy  Market  Participants  (CEREMP)  Platform 
was completed and access provided to National 
Regulatory Authorities (NRAs), including those 
which  wanted  to  use  a  purposely  developed 
CEREMP module for handling the national reg-
istration  process  of  market  participants.  With 
respect to the other parts of the REMIT-related 
IT system, a number of pilot projects involving 
a large number of interested parties and focus-
ing  on  data  collection  and  sharing  were  run 
during  the  year.  In  December  2014  the  REMIT 
Implementing  Acts  were  finally  adopted. They 
entered  into  force  on  7  January  2015  and  the 
preparatory work conducted by the Agency last 
year  led  to  the  publication,  on  the  following 
day, of a number of key documents to provide 
market  participants  and  other  stakeholders 
with  essential  information  for  preparing  trade 
data  reporting  as  of  October  this  year.  On 
the  same  date  the  Agency  launched  its  new 
REMIT Portal, the single point for access for all 
REMIT-related applications and opened the reg-
istration  of  Registered  Reporting  Mechanisms. 
These achievements are particularly significant 
considering that the Agency has so far been as-
signed only a small part of the human resources 
required for the implementation and operation 
of  REMIT  and  that  the  funds  for  the  develop-
ment  of  the  REMIT-related  IT  platforms  were 
only  made  available  to  the  Agency,  through  a 
transfer from DG Energy, at the end of 2013.

In  terms  of  infrastructure,  in  2014  the  Agency 
received the first two requests for cross-border 
cost-allocation  decisions  for  Projects  of  Com-
mon  Interest,  under  the  provisions  of  Regula-
tion  (EU)  No  347/2013  (the TEN-E  Regulation). 
These  decisions  are  referred  to  the  Agency  if 
the relevant NRAs fail to agree on the cost allo-
cation within a six-month period, or upon their 
joint  request.  The  first  request,  related  to  the 
Gas  Interconnection  Poland  Lithuania  (GIPL), 
was  received  by  the  Agency  in  May  2014  and 
the decision was issued in August. For the first 
time,  costs  for  an  infrastructure  project  were 
also  allocated  to  non-hosting  Member  States 
(Latvia and Estonia, in this case). The second re-
quest was referred to the Agency in December 
2014 and the decision issued in April 2015.

Finally,  with  respect  to  future  challenges,  in 
September  2014  the  Agency  presented  the 
conclusions of its year-long initiative ‘Bridge to 
2025’ in which, in collaboration with the Coun-
cil  of  European  Energy  Regulators  (CEER)  and 

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Mission

Tasks

The Agency was established by Regulation (EC) 
No  713/2009  to  assist  NRAs  in  exercising,  at 
Union  level,  the  regulatory  tasks  they  perform 
in the Member States and, where necessary, to 
coordinate their action.

In respect of its mission the Agency:

(cid:116)(cid:1) complements  and  coordinates  the  work  of 

NRAs;

(cid:116)(cid:1) participates in establishing the internal elec-
tricity and gas market and network rules, and 
in planning the development of the European 
networks;

(cid:116)(cid:1) takes,  under  certain  conditions,  binding  in-
dividual  decisions  on  terms  and  conditions 
for  access  to  and  operational  security  of 
cross-border infrastructure and on exemption 
requests;

(cid:116)(cid:1) gives  advice  on  electricity  and  natural  gas-
related issues to other European institutions, 
at their request or on its own initiative;

(cid:116)(cid:1) monitors  the  internal  markets  in  electricity 
and natural gas, and reports on its findings;

(cid:116)(cid:1) submits a proposal to the Commission on the 
annual cross-border infrastructure compensa-
tions sum for the ITC mechanism; 

(cid:116)(cid:1) participates  in  the  process  to  select  Projects 
of Common Interest (PCIs), including by issu-
ing opinions on the consistent application of 
the  selection  criteria  and  of  the  cost-benefit 
analysis  across  regions,  and  monitoring  the 
implementation of PCIs; 

(cid:116)(cid:1) takes  decisions  on  investment  requests  for 
PCIs,  including  on  cross-border  cost  alloca-
tion (CBCA), if the relevant NRAs fail to reach 
an agreement;   

(cid:116)(cid:1) monitors  trading  on  EU  wholesale  energy 
markets  to  detect  and  prevent  market-abu-
sive behaviour, in cooperation with NRAs, the 
ESMA, the competent financial authorities of 
the  Member  States  and,  where  appropriate, 
national competition authorities; 

(cid:116)(cid:1) assesses  the  operation  and  transparency  of 
different  categories  of  market  places  and 
ways of trading; 

(cid:116)(cid:1) makes recommendations to the Commission 
as  regards  market  rules,  records  of  transac-
tions,  orders  to  trade,  and  standards  and 
procedures  which  could 
improve  market 
integrity  and  the  functioning  of  the  internal 
market. 

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Organisation

The  Agency’s  governance  is  structured  as  fol-
lows (see also Annex I):  

The  Agency  is  managed  by  the  Director,  who 
is appointed by the AB after favourable opinion 
from the BoR and based on a list of candidates 
proposed  by  the  Commission.  The  Director 
prepares  the  work  of  the  AB.  He  adopts  and 
publishes  the  opinions,  recommendations  and 
decisions  that,  when  required,  have  received  a 
favourable opinion from the BoR.  

The  Administrative  Board  (AB)  is  composed 
of  two  members  appointed  by  the  European 
Parliament,  five  members  appointed  by  the 
Council  and  two  members  appointed  by  the 
Commission.  Each  member  has  an  alternate.  It 
adopts the Agency’s Work Programme and the 
budget. It ensures that the Agency carries out its 
mission and performs the tasks assigned to it in 
accordance with the Agency Regulation.

The  Board  of  Regulators  (BoR)  is  composed 
of a senior representative of the regulatory au-
thority  from  each  Member  State  and  one  non-
voting  representative  of  the  Commission.  Each 

member  has  an  alternate.  It  provides  opinions 
to the Director on many of the opinions, recom-
mendations  and  decisions  that  are  considered 
for adoption; provides guidance to the Director 
in the execution of its tasks; delivers an opinion 
to  the  AB  on  the  candidate  to  be  appointed 
as  Director  and  approves  the  Agency’s  Work 
Programme.

The  Board  of  Appeal  (BoA)  is  composed  of 
six  members  and  six  alternates,  selected  from 
among  the  current  or  former  senior  staff  of 
the  NRAs,  competition  authorities  or  other  na-
tional  or  Community  institutions  with  relevant 
experience in the energy sector. It is part of the 
Agency, but is independent from its administra-
tive and regulatory structure.

Any natural or legal person, including NRAs can 
lodge an appeal against a decision taken by the 
Agency  where  it  has  actual  decision-making 
powers (individual decisions).

The  decisions  of  the  BoA  may  themselves  be 
subject to appeal before the Court of Justice of 
the European Communities.

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Statement of the Chair of the Board of Regulators 

2014  marked  the  deadline  for  the  completion 
of  the  IEM.  Significant  progress  toward  that 
objective has been accomplished which will de-
liver substantial benefits to consumers. Looking 
ahead, we will continue to face new challenges 
and we have taken steps to consider how they 
can best be met.

Our  major  achievements  for  the  year  include 
substantial progress in supporting the develop-
ment of common rules: by the end of 2014 we 
had proposed 11 Network Codes, three of which 
have  already  been  adopted.  The  Agency  and 
the NRAs have been very busy and continued to 
work  together  to  finalise  the  remaining  Codes 
and  secure  their  rapid  implementation  (even 
before their provisions become legally binding). 
Our objective remains a strong commitment to 
ensuring that energy consumers reap the bene-
fits of a well-functioning IEM as soon as possible. 

We  have  built  on  our  work  in  2013  when  we 
completed  Framework  Guidelines  in  the  eight 
priority areas identified by the Commission. The 
main  focus  of  the  Agency  in  the  last  year  has 
been to ensure that the priority elements of the 
IEM are in place, notably the network codes, and 
arrangements to monitor the Union’s wholesale 
market effectively. We have also sought to take 
a strategic approach to ensure that the rules we 
develop today will remain relevant in an evolv-
ing  energy  market,  and  to  further  refine  the 
Agency’s processes to ensure they are transpar-
ent and fully involve stakeholders.

The  Agency  continues  to  play  a  central  role  in 
promoting  the  efficient  development  of  es-
sential  infrastructure.  It  does  this  by  fulfilling 
its responsibilities under the Third Package and 
the TEN-E Regulation in respect of the Ten Year 
Network  Development  Plans  and  European 
Network  of  Transmission  System  Operators’ 
(ENTSOs) activities as well as the selection and 
regulatory  treatment  of  Projects  of  Common 
Interest.  The  Agency’s  first  decision  on  CBCA 
was taken in August 2014 on the gas intercon-
nection Poland-Lithuania. 

The Agency also has the task of monitoring EU 
energy  markets  and  published  its  third  joint 
ACER-CEER Market Monitoring Report (MMR) on 
market  performance  in  2013.  This  highlighted 
the  lack  of  responsiveness  of  retail  prices  in  a 
period when wholesale prices were falling.

In co-operation with CEER the Agency developed 
a strategic vision for identifying and tackling the 
challenges  of  the  IEM  in  the  10  years  beyond 
2014. Following an extensive and well-received 
consultation,  the  conclusions  paper  ‘A  Bridge 
to 2025’ was published in September 2014. The 
‘Bridge’ set out recommendations on the regula-
tory and legislative responses required to meet 
these  challenges  such  as:  facilitating  flexibility; 
fostering greater interactions between electric-
ity and gas markets and strengthening govern-
ance arrangements. We will monitor and review 
the implementation of the recommendations in 
the ‘Bridge’ paper during 2015 and beyond. The 

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‘Bridge’ was never intended to be a single-event 
report.  It  is  rather  a  lively  dynamic  document 
that is at the heart of a holistic process designed 
to  help  shape  future  energy  markets  policy  in 
the  interest  of  consumers.  It  is  fully  consistent 
with  the  objectives  subsequently  contained  in 
the  Commission’s  new  Energy  Union  strategy, 
notably  linking  wholesale  and  retail  markets 
and having consumers at its heart. 

The  Agency  and  regulators  have  fully  demon-
strated  their  commitment  to  the  full  involve-
ment  of  consumers  and  other  stakeholders  in 
our work. Among the many stakeholder events 
held in 2014 were the third annual conference 
(on ‘REMITage:  the  age  of  REMIT’)  in  June,  the 
presentation  of  the ‘Bridge’  conclusions  paper 
in September and a presentation of the ACER-
CEER  joint  MMR  in  October.  Quarterly  public 
debriefing sessions are organised after the BoR 
Meetings, a range of workshops, ad-hoc expert 
meetings and six public consultations have tak-
en place, which clearly provide further evidence 
of our commitment to consult extensively. 

Finally, I want to underline the importance of im-
plementing  and  preparing  the  new  framework 
to detect and prevent market abuse in European 
wholesale  energy  markets  under  REMIT,  which 
comes  into  operation  in  2015.  This  policy  is 
crucial for market integrity, but it posed a major 
and continuing challenge to the Agency. Major 
progress has, however, been achieved in the last 
year, notably the development and deployment 

of  a  tailor-made  IT  infrastructure  to  support 
data  collection  and  the  market  monitoring 
framework by both the Agency and NRAs who 
are charged with enforcement. 

Much remains to be done to achieve our aim of 
a well-functioning, integrated market and many 
challenges  lie  ahead.  Working  nationally,  re-
gionally and at European level with NRAs, policy 
makers and stakeholders, we remain committed 
to putting the framework in place that will de-
liver an internal market in energy for the benefit 
of Europe’s consumers. 

As  in  earlier  years  I  wish  to  conclude  with  my 
thanks  for  the  work  undertaken  by  the  Direc-
tor and the staff in the Agency and to the staff 
from  many  NRAs  who  have  been  involved  in 
developing the Agency’s main policies. The load 
continues  to  be  heavy  not  only  for  regulators 
but for stakeholders in responding to the many 
consultations we are conducting. ‘Collaboration’ 
is part of the title of the Agency. It can be no bet-
ter  demonstrated  than  in  the  day-to-day  work 
between the Director and his staff, between the 
Agency and NRAs, and certainly the cooperation 
with the Commission (particularly DG ENER), the 
European  Parliament  and  all  stakeholders  is  of 
significant importance.

 Lord Mogg

 
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Regulatory activities

KEY PERFORMANCE INDICATORS

TRAFFIC LIGHTS (VISUAL STATE OF PLAY) - LEGEND

On track: no 
problems foreseen

A problem 
occurred and/or 
a delay occurred 
or is foreseen: KPI 
not achieved

A problem or a delay 
occurred due to 
outside factors (e.g.: 
not received on time 
from the ENTSOs or 
the Commission)

There is a slight 
delay or an issue 
that still needs to be 
resolved, but the KPI 
should be achieved 
with a slight delay

KPI achieved: 
task completed

KPI achieved: task 
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1.1 Electricity Framework Guidelines 
and Network Codes

Deliverable

Legal basis

Work Programme 
objective for 2014

Recommendation on the Network Code 
on forward capacity allocation

Article 6(4) of Regulation (EC) No 713/2009; Articles 6(7), 
6(9) and 8(6)(g) of Regulation (EC) No 714/2009

The European Network of Transmission System Operators for 
Electricity (ENTSO-E) submitted the Network Code on Forward 
Capacity Allocation for opinion to the Agency in October 2013. 
The Agency issued an opinion on this Network Code within three 
months of receiving the Network Code from the ENTSO-E, asking 
for improvements. A revised Network Code is expected in Q1 2014. 

Targets and deadlines 
(indicative)

Delivery of the Recommendation to the Commission on the 
Network Code on Forward Capacity Allocation pursuant 
to the timeline indicated in the Three-Year Plan.

Performance 
indicators

The timely delivery to the Commission of the Recommendation 
on the Network Code on Forward Capacity Allocation.

Risk assessment

Given the limited resources of the Agency, the involvement 
of NRAs and national experts is essential to ensure 
the timely delivery of the Recommendation.

Achievement 
against the target

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The ENTSO-E submitted the first draft Network Code on 
Forward Capacity Allocation on 1 October 2013. The Agency 
issued a Reasoned Opinion on 20 December 2013, i.e. within 
the given three-month period. The ENTSO-E resubmitted a 
draft Network Code on Forward Capacity Allocation on 3 April 
2014. The Agency issued its Recommendation on 22 May 
2014, i.e. in less than two months after the resubmission.

http://www.acer.europa.eu/Official_documents/Acts_of_the_Agency/
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Deliverables

Legal basis

Opinion and Recommendation on the Network 
Code on Electricity Balancing

Article 6(4) of Regulation (EC) No 713/2009; Articles 6(7), 
6(9) and 8(6)(h) and (j) of Regulation (EC) No 714/2009

Work Programme 
objective for 2014

The ENTSO-E submitted the Network Code on Electricity 
Balancing to the Agency in December 2013.

The Agency shall issue an Opinion on this Network Code within three 
months of receiving it from the ENTSO-E. The Recommendation to 
the Commission could be issued at the same time as the Opinion 
or later, depending on whether the Agency is satisfied with the 
compliance of the Network Code with the Framework Guideline.

Targets and 
deadlines 
(indicative)

Delivery of the Opinion and Recommendation to the 
Commission on the Network Code on Electricity Balancing 
pursuant to the timeline indicated in the Three-Year Plan.

Performance 
indicators

The timely delivery of the Opinion and the Recommendation to 
the Commission on the Network Code on Electricity Balancing.

Risk assessment

Given the limited resources of the Agency, the involvement 
of NRAs and national experts is essential to ensure the timely 
delivery of the Opinion and the Recommendation.

Achievement 
against the target

The ENTSO-E submitted a first draft Network Code on Electricity 
Balancing on 23 December 2013. The Agency issued a Reasoned 
Opinion on this Network Code on 21 March 2014, i.e. within the 
given three-month period. The ENTSO-E re-submitted a revised 
draft Network Code on Electricity Balancing on 16 September 2014. 
The Agency will issue its Qualified Recommendation in Q2 2015.  

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Deliverables

Legal basis

Opinion and Recommendation on the Network Code on 
High-Voltage Direct Current (HVDC) Connections

Article 6(4) of Regulation (EC) No 713/2009; Articles 6(7), 
6(9) and 8(6)(b) of Regulation (EC) No 714/2009

Work Programme 
objective for 2014

The Framework Guidelines on Electricity System Operation were 
submitted to the Commission in July 2011. The Commission 
invited the ENTSO-E to develop a Network Code on HVDC 
Connections and to submit it to the Agency by 1 May 2014.

The Agency shall issue an Opinion on this Network Code 
within three months of receiving it from the ENTSO-E.

The Recommendation to the Commission could be issued 
at the same time as the Opinion or later, depending on 
whether the Agency is satisfied or not with the compliance 
of the Network Code with the Framework Guideline.

Targets and 
deadlines 
(indicative)

Delivery of the Opinion and the Recommendation on 
the Network Code on HVDC Connections according to 
the timeline indicated in the Three-Year Plan.

Performance 
indicators

The timely delivery of the Opinion and the Recommendation to 
the Commission on the Network Code on HVDC Connections.

Risk assessment

Given the limited resources of the Agency, the involvement 
of NRAs and national experts is essential to ensure the timely 
delivery of the Opinion and the Recommendation.

Achievement 
against the target

The ENTSO-E submitted a draft Network Code on HVDC 
Connections on 30 April 2014. The Agency issued a Reasoned 
Opinion and a Recommendation on this Network Code on 
24 July 2014, i.e. within the given three-month period.

http://www.acer.europa.eu/Official_documents/Acts_of_the_Agency/
Opinions/Opinions/ACER%20Opinion%2014-2014.pdf

http://www.acer.europa.eu/Official_documents/Acts_of_the_Agency/
Recommendations/ACER%20Recommendation%2004-2014.pdf

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Activity

Legal basis

Opinion and Recommendation on the Network Code 
on Operational Procedures in Emergency

Article 6(4) of Regulation (EC) No 713/2009; Articles 6(7), 
6(9) and 8(6)(a) and (f ) of Regulation (EC) No 714/2009

Work Programme 
objective for 2014

The Framework Guidelines on Electricity System Operation were 
submitted to the Commission in December 2011. In 2014, the 
Commission is expected to invite the ENTSO-E to develop the 
Network Code on Operational Procedures in Emergency.

The Agency shall issue an Opinion on this Network Code within 
three months of receiving it from the ENTSO-E, probably in 2015, 
however activities conducive to the Opinion will be ongoing in 2014.

The Recommendation to the Commission could be issued 
at the same time as the Opinion or later, depending on 
whether the Agency is satisfied or not with the compliance 
of the network code with the Framework Guideline.

Targets and 
deadlines 
(indicative)

Delivery of the Opinion and the Recommendation on the 
Network Code on Operational Procedures in Emergency 
according to the timeline indicated in the Three-Year Plan.

Performance 
indicators

The timely delivery of the Opinion and the 
Recommendation to the Commission on the Network 
Code on Operational Procedures in Emergency.

Risk assessment 

Given the limited resources of the Agency, the involvement 
of NRAs and national experts is essential to ensure the timely 
delivery of the Opinion and the Recommendation.

Achievement 
against the target

The Commission invited the ENTSO-E to submit a draft Network 
Code on Operational Procedures in Emergency by 1 April 2015.

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Activity

Advice and support on network codes during the 
comitology procedure, as appropriate

Legal basis

Article 6 and Article 8(6)(a)(b)(g) and (j) of (EC) Regulation 714/2009

Work Programme 
objective for 2014

The Agency recommended the Electricity Grid Connection 
Network Codes and the Network Code on Capacity Allocation and 
Congestion Management for adoption by the Commission via 
the comitology procedure. Recommendations for the Electricity 
System Operation Network Codes were delivered in 2013. 

Targets and 
deadlines 
(indicative)

Advice and support to be provided according to the timelines 
determined by the Commission and the Comitology Committees.

Performance 
indicators

The timely delivery of the feedback on the network 
codes in due course of the comitology procedure.

Risk assessment 

No appreciable risk.

Achievement 
against the target

In 2014, the Agency provided extensive support to the 
Commission during the pre-comitology and comitology 
procedure for the adoption of the Network Code on Capacity 
Allocation and Congestion Management, which was later 
transformed into a Guideline. No other electricity network 
code entered into the comitology procedure in 2014.

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Activity

Legal basis

Preparation for, and monitoring of, the 
implementation of the adopted network codes

Article 6(6) of Regulation (EC) No 713/2009 and 
Article 9(1) of Regulation (EC) No 714/2009

Work Programme 
objective for 2014

The Agency recommended the Electricity Grid Connection 
Network Codes and the Capacity Allocation and Congestion 
Management Network Codes for adoption by the Commission via 
the comitology procedure. Recommendations for the Electricity 
System Operation Network Codes were delivered in 2013.

Targets and 
deadlines 
(indicative)

The Agency is required to prepare for the monitoring of the 
implementation of the adopted network codes. For this purpose 
it will establish (i) a suitable framework concept with the NRAs 
and the ENTSO-E, (ii) working processes and (iii) IT support.

This activity will also promote a consistent interpretation by 
NRAs of the provisions contained in the Network Codes.

Performance 
indicators

No deliverable expected in 2014.

Risk assessment 

No appreciable risk.

Achievement 
against the target

None of the draft network codes were adopted or scheduled for 
implementation in 2014. In 2015, the Agency shall prepare a list 
of necessary data to be delivered by the ENTSO-E for reporting 
on the implementation of the adopted network codes in 2016.

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1.2 Gas Framework Guidelines and Network Codes

Deliverable

Scoping of Rules for trading related to technical and operational 
provisions of network access services and system balancing

Legal basis

Article 6 and Article 8(6)(h) of (EC) Regulation 715/2009

Work Programme 
objective for 2014

Begin scoping process to identify whether the binding EU rules to 
further harmonise the design of capacity products and contracts 
as regards firmness and restrictions to allocation or secondary 
market are needed, taking into account the implementation of 
the guideline on congestion management procedures and the 
network codes on capacity allocation mechanisms and balancing. 

Targets and 
deadlines 
(indicative)

Delivery of Scoping for Framework Guidelines on Rules for 
trading related to technical and operational provisions of 
network access services and system balancing according 
to the timeline indicated in the Three-Year Plan.

Performance 
indicators

The timely delivery of the Scoping for Framework Guidelines 
on Rules for trading related to technical and operational 
provisions of network access services and system balancing.

Risk assessment

The topic is less clearly defined than others, which 
may lead to different expectations.

Given the limited resources of the Agency, the 
involvement of NRAs is essential to ensure the timely 
delivery of the Opinion and the Recommendation.

The Scoping exercise was carried out on 3 July 2015. The 
Agency informed the Commission that no market interest was 
recorded for a Network Code on Rules for trading and that the 
Agency has not identified the need for this Network Code. The 
evaluation of responses was published 3 October 2014.

Link to the evaluation of responses in the scoping 
phase of the project: http://www.acer.europa.eu/Gas/
Framework%20guidelines_and_network%20codes/
Documents/2014_10_3_%20EoR%20RfT%20consultation.pdf

Achievement 
against the target

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Activity

Opinion and Recommendation on the Network Code on Rules 
regarding Harmonised Gas Transmission Tariff Structure

Legal basis

Article 6 and Article 8(6)(k) of (EC) Regulation 715/2009

Work Programme 
objective for 2014

The Framework Guidelines on Rules regarding Harmonised 
Gas Transmission Tariff Structure were published in November 
2013. The Commission invited the European Network of 
Transmission System Operators for Gas (ENTSOG) to develop 
the Network Code within a period of 12 months. The Network 
Code was delivered to the Agency in December 2014 and the 
Opinion and Recommendation will be issued in 2015.

Targets and 
deadlines 
(indicative)

Performance 
indicators

Delivery of the Opinion and Recommendation on the Network Code 
on Rules regarding Harmonised Gas Transmission Tariff Structure 
according to the timeline indicated in the Three-Year Plan.

The timely delivery of the Opinion and of the Recommendation 
to the Commission on the Network Code Rules regarding 
Harmonised Gas Transmission Tariff Structure.

Risk assessment

Given the limited resources of the Agency, the 
involvement of NRAs is essential to ensure the timely 
delivery of the Opinion and the Recommendation.

The ENTSOG delivered the code on 26 December 2014, within the 
expected timeline provided for in the letter from the Commission 
to the ENTSOG. The Agency will follow this up with a Reasoned 
Opinion and a Recommendation based on Articles 6(7) and 6(9) of 
the Gas Regulation. At the end of 2014, the project was on track.

Link to the ENTSOG NC, as submitted to the Agency: 
http://www.entsog.eu/public/uploads/files/publications/
Tariffs/2014/TAR0450_141226_TAR%20NC_Final.pdf 

Achievement 
against the target

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Deliverable

Follow-up to the amendments for the network codes related to the 
allocation of ‘new build’ incremental gas transmission capacity

Legal basis

Article 7 of (EC) Regulation 715/2009

Work Programme 
objective for 2014

Follow up the Network Code amendment process in 
relation to Capacity Allocation Mechanisms in 2014. 

Targets and 
deadlines 
(indicative)

Performance 
indicators

Agency’s follow-up on the ENTSOG’s amendment proposals. 

Delivery of the Proposal for the amendment to the Network 
Code on Capacity Allocation Mechanisms according 
to the timeline indicated in the Three-Year Plan. 

Risk assessment

Given the limited resources of the Agency, the involvement of 
NRAs is essential to ensure the timely delivery of the Proposal.

Achievement 
against the target

The ENTSOG delivered its amendment proposal on 26 December 
2014. The Agency launched its public consultation on 4 February 
2015 based on Article 7(2) of the Gas Regulation and is following 
up on it. At the end of 2014, the project was on track.

Link to the public consultation launched by the Agency: 
http://www.acer.europa.eu/Official_documents/
Public_consultations/Pages/PC_2015_G_02.aspx

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Activity

Advice and support on network codes during the comitology 
procedure, as appropriate (Interoperability and Data NC)

Legal basis

Article 6 and Article 8(6)(d)(e) of (EC) Regulation 715/2009

Work Programme 
objective for 2014

Start of the comitology procedure in Q2/2014. The Agency to provide 
advice and support on network codes during comitology procedure. 

Targets and 
deadlines 
(indicative)

Advise the Commission during the comitology procedure.

Performance 
indicators

The timely delivery of the feedback on the network 
codes in due course of comitology.

Risk assessment 

No appreciable risk.

Achievement 
against the target

The Agency provided advice and support to the 
Commission throughout the comitology process. The Gas 
Committee voted on the text on 4 November 2014.

No links can be provided.

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Activity

Preparation for and monitoring of the implementation of the 
adopted Congestion Management Procedures (CMP) Guidelines

Legal basis

Article 9(1) of (EC) Regulation 715/2009

Work Programme 
objective for 2014

The Network Code on Capacity Allocation Mechanism came into force 
in October 2013. It will have to be implemented by November 2015. 
Other Network Codes are not expected to be implemented in 2014; 
however the CMP Guidelines are applicable as of October 2013.

Targets and 
deadlines 
(indicative)

Performance 
indicators

Risk assessment

The Agency is required to prepare for the monitoring of 
the implementation of the adopted Network Codes and 
Guidelines. The Agency took steps to monitor the national 
implementation of the CMP Guidelines. As a pilot the Agency 
will establish (i) a suitable framework concept with the NRAs 
and the ENTSOG, (ii) working processes and (iii) IT support.

This activity will also promote a consistent interpretation by NRAs 
of the provisions contained in the Network Codes and Guidelines.

In particular, the Agency will monitor the Guidelines 
on congestion management procedures.

The Agency will facilitate the work of the ENTSOG, TSOs, NRAs 
and others, as necessary, relating to capacity platforms.

Annual Monitoring Report on contractual 
congestion at IPs: 1 March 2014.

Timely delivery of the Monitoring Report on congestion management.

NRA/ENTSOG involvement and support in the process is needed, 
but not guaranteed. NRAs shall participate via the Regional 
Initiative and the working groups to ensure compliant and timely 
implementation. The Agency will not be in a position to meet the 
deadlines without sufficient support from the NRAs, especially 
for the delivery of the CMP Monitoring Report, as the timescale 
is extremely tight. Availability of quality data is also a risk.

Achievement 
against the target

Two reports were delivered as part of the Agency’s efforts to 
monitor the implementation of the adopted CMP Guidelines:

The Agency’s annual report on contractual congestion at 
interconnection points was published on 28 February 2014:

http://www.acer.europa.eu/Official_documents/
Acts_of_the_Agency/Publication/ACER%20Gas%20
Contractual%20Congestion%20Report%202014.pdf

The Implementation Monitoring Report on Congestion Management 
Procedures in 2014 was published on 13 January 2015:

http://www.acer.europa.eu/Official_documents/
Acts_of_the_Agency/Publication/ACER%20CMP%20
Implementation%20Monitoring%20Report%202014.pdf

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1.3 Cross-sector issues (electricity and gas)

Monitoring of the internal markets in electricity and natural gas

Deliverable

Annual Market Monitoring Report (MMR)

Legal basis

Articles 11(1) and (2) of (EC) Regulation 713/2009

Work Programme 
objective for 2014

Targets and 
deadlines 
(indicative)

Performance 
indicators

In 2014 the MMR will focus on the functioning of energy 
markets, and ways to improve their efficiency to make energy 
more affordable for European consumers. More specifically, the 
MMR will analyse the evolution of retail prices for electricity and 
natural gas, wholesale market integration, access to networks 
(including electricity produced or gas sourced from renewable 
energy sources), and compliance with consumer rights.

In line with previous issues, the MMR will provide in-depth analysis of 
barriers to integration and give recommendations to the European 
Parliament and the Commission on how to remove them.

The Agency’s policy and market monitoring teams for 
gas and electricity will coordinate the substance of 
the MMR with the Commission Directorate-General 
for Energy to avoid duplication of work.

The Agency will also cooperate and coordinate with the CEER.

Annual Market Monitoring Report:

Expected completion date: November 2014.

Timely completion of the Annual Market Monitoring Report.

Positive feedback from the European Parliament, the Commission 
and stakeholders on the MMR, including the possibility of a survey 
following the publication and presentation of the report. 

Number of downloads on the Agency’s website and on the EU 
Publications Office’s website: >10% increase compared to 2013.

Reader survey: 2/3 majority of respondents satisfied or highly satisfied.

Risk assessment

The quality of the report depends on the quality and accessibility 
of the data received by the Agency. Human resource constraints 
may impact the timely delivery and quality of the report. The 
integrity of all data sources needs to be secured electronically 
and, in some cases, to be coordinated with REMIT.

Achievement 
against the target

The Market Monitoring Report was published in October 2014:

http://www.acer.europa.eu/Official_documents/Acts_of_the_Agency/
Publication/ACER_Market_Monitoring_Report_2014.pdf

The number of downloads increased by 45% when 
compared with the previous year. Survey implementation 
was delayed due to limited resources.

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Regional initiatives - support and monitoring

Activity

Legal Basis

Coordination and monitoring of activities for the 
early implementation of Network Codes

Several articles on regional dimension of Regulations (EC) 
No 713/2009, (EC) No 714/2009 and (EC) No 715/2009

Work Programme 
objective for 2014

The Electricity Regional Initiative (ERI) Roadmaps were endorsed by 
the Florence Forum in December 2011 and are being implemented.

The first Gas Regional Initiatives (GRI) Roadmap on 
Capacity Allocation Mechanisms, endorsed by the Madrid 
Forum in October 2012, is being implemented.

Targets and 
deadlines 
(indicative)

Performance 
indicator

Ongoing process. Progress in implementing the roadmaps is reviewed 
regularly through the Status Review and online Progress Reports.

The timely implementation of the cross-regional roadmaps.

Risk assessment

Strong commitment is required from all parties involved to ensure 
early implementation, especially from TSOs, PXs and NRAs.

In electricity, the early implementation of the cross-regional 
roadmaps was broadly successful (in particular in terms of 
Day-Ahead market integration), but it also encountered 
significant delays, in particular regarding the Cross-Border 
Intraday project and the Flow-Based Market Coupling Project in 
Central West Europe (in both cases due to external factors).

In Gas, the Capacity Allocation Mechanism Roadmap was published, 
jointly with the ENTSOG, in October 2014, documenting progress 
in its implementation. By the end of 2014, 3 capacity platforms 
were operational: Prisma, GSA and the Regional Booking Platform. 
The vast majority of the auctions took place on Prisma. A number 
of auctions also took place on the Virtual Interconnection points 
(VIPs) between Portugal and Spain and between Spain and France. 
However, not all pilot projects were delivered during 2014. 

http://www.acer.europa.eu/Gas/Regional_%20Intiatives/CAM_
roadmap/Documents/CAM_Roadmap_Update_Oct_2014_FINAL.pdf

Achievement 
against the target

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Regional initiatives - Annual Status Review Report 

Deliverable

Regional Initiatives Annual Status Review Report 

Legal Basis

Several articles on regional dimension of Regulations (EC) 
No 713/2009, (EC) No 714/2009 and (EC) No 715/2009

Work Programme 
objective for 2014

The report promotes transparency towards stakeholders, 
informing them of progress achieved in RIs, obstacles 
faced during the year and indicates the way forward. 

Targets and 
deadlines 
(indicative)

Expected completion date of the Regional Initiatives 
Status Review Report 2014: December 2014.

Performance 
indicators

Number of downloads on the Agency’s website and on the EU 
Publications Office’s website: >10% increase compared to 2013.

Reader survey: 2/3 majority of respondents satisfied or highly satisfied.

Risk assessment

Given the limited resources of the Agency, the involvement of NRAs and 
national experts is essential to ensure the timely delivery of the Reports.

Achievement 
against the target

The final version of the report was completed and endorsed 
at the December BoR meeting. The publication of the report 
(following proof-reading and design) took place on 10 February.

http://www.acer.europa.eu/Official_documents/
Acts_of_the_Agency/Publication/ACER%20Regional%20
Initiatives%20Status%20Review%20Report%202014.pdf

The number of downloads increased by 64% when 
compared with the previous year. Survey implementation 
was delayed due to limited resources.

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Regional initiatives - Quarterly Progress Reports 

Deliverables

Legal basis

Online quarterly reports on the activities of 
the Electricity Regional Initiative (ERI)

Online progress reports on the activities of 
the Gas Regional Initiative (GRI)

Several articles on regional dimension of Regulations (EC) 
No 713/2009, (EC) No 714/2009 and (EC) No 715/2009

Work Programme 
objective for 2014

The online ERI and GRI reports are complementary to the Regional 
Initiatives Annual Status Review Report, allowing for more regular 
tracking of updated regional developments on a quarterly basis.

Targets and 
deadlines 
(indicative)

Performance 
indicators

Expected time-frames: January, April, July and October 2014.

Timely publication of the reports.

Risk assessment

Given the limited resources of the Agency, the involvement of NRAs and 
national experts is essential to ensure the timely delivery of the Reports.

Achievement 
against the target

The quarterly reports on the ERI and on the GRI were 
published, but with one month’s delay compared to the 
expected deadlines due to late receipt of contributions.

For information, in the course of the year, it was agreed to change 
the frequency of the report from quarterly to semi-annually.

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1.4 TSO cooperation

The Agency will monitor the activities of the ENTSO-E and the ENTSOG and report on them in the 
various specific opinions which it is required to issue on individual documents, as specified in the 
following subsections. This reporting will be considered as fulfilling the mandate to report on the ex-
ecution of the tasks referred to in Articles 8(1), (2) and (3) of Regulations (EC) 714/2009 and 715/2009.

Electricity

Deliverables

Legal basis

Annual monitoring Report on the implementation and 
management of the inter-TSO compensation fund

Opinions on the ENTSO-E’s Annual Work Programme 
and the ENTSO-E’s annual report

Opinions on the ENTSO-E’s Annual Summer 
and Winter supply outlooks

Opinion on the ENTSO-E’s Common network operation 
tools including a common incidents classification scale

Opinion on the ENTSO-E’s research and development plan

Opinion on the electricity Community–wide Ten-
Year Network Development Plan (TYNDP)

Opinion on the ENTSO-E’s Recommendations relating to the 
coordination of technical cooperation between Community 
and third-country transmission system operators

Report on monitoring the implementation of the electricity 
Community–wide TYNDP and the progress as regards the 
implementation of projects to create new interconnector capacity

Opinion on the ENTSO-E‘s draft Scenario 
Outlook & Adequacy Forecast

Article 1(4) of Annex Part A, European Commission 
Regulation (EU) No 838/2010

Articles 6(3)(b) and 6(4) of Regulation (EC) No 713/2009 in conjunction 
with Articles 8(3)(d) and 8(3)(e) of Regulation (EC) No 714/2009

Article 6(3)(b) of Regulation (EC) No 713/2009 in conjunction 
with Article 8(3)(f ) of Regulation (EC) No 714/2009

Article 6(3)(b) of Regulation (EC) No 713/2009 in conjunction 
with Article 8(3)(a) of Regulation (EC) No 714/2009

Article 6(3)(b) of Regulation (EC) No 713/2009 in conjunction 
with Article 8(3)(a) of Regulation (EC) No 714/2009

Articles 6(3)(b) and 6(4) of Regulation (EC) No 713/2009 in 
conjunction with Article 8(3)(b) of Regulation (EC) No 714/2009

Article 6(3)(b) of Regulation (EC) No 713/2009 in conjunction 
with Article 8(3)(c) of Regulation (EC) No 714/2009

Articles 6(7) and 6(8) of Regulation (EC) No 713/2009

Article 6(3)(b) of Regulation (EC) No 713/2009 in conjunction 
with Article 8(3)(b) of Regulation (EC) No 714/2009

Work Programme 
objective for 2014

Activities to be carried out upon submission of 
the relevant documents by the ENTSO-E.

Targets and 
deadlines 
(indicative)

Monitoring report on 2013 ITC implementation: September 2014.

Opinion on the ENTSO-E’s Work Programme: within two 
months after receipt of the document by the ENTSO-E.

Opinion on the ENTSO-E’s TYNDP: within two months 
after receipt of the document by the ENTSO-E.

Opinion on the ENTSO-E’s other documents: after 
receipt of the document by the ENTSO-E.

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Deliverables

Performance 
indicators

Risk assessment

Achievement 
against the target

Annual monitoring Report on the implementation and 
management of the inter-TSO compensation fund

Opinions on the ENTSO-E’s Annual Work Programme 
and the ENTSO-E’s annual report

Opinions on the ENTSO-E’s Annual Summer 
and Winter supply outlooks

Opinion on the ENTSO-E’s Common network operation 
tools including a common incidents classification scale

Opinion on the ENTSO-E’s research and development plan

Opinion on the electricity Community–wide Ten-
Year Network Development Plan (TYNDP)

Opinion on the ENTSO-E’s Recommendations relating to the 
coordination of technical cooperation between Community 
and third-country transmission system operators

Report on monitoring the implementation of the electricity 
Community–wide TYNDP and the progress as regards the 
implementation of projects to create new interconnector capacity

Opinion on the ENTSO-E‘s draft Scenario 
Outlook & Adequacy Forecast

Timely delivery of the reports and opinions.

The delivery is subject to the release of the corresponding 
documents by the ENTSO-E and to the availability of 
resources (taking into account the possible reprioritisation of 
activities for the tasks of Regulation (EU) No 347/2013).

The Agency delivered all deliverables within or close to 
the planned deadlines (the monitoring report on 2013 ITC 
Implementation was delivered 2 months later). The ENTSO-E’s 
proposal relating to the coordination of technical cooperation 
between Community and third-country transmission 
system operators was not submitted to the Agency.
1  The Agency published its ‘Report to the European 
Commission on the implementation of the ITC 
mechanism in 2013’ in November 2014. 

http://www.acer.europa.eu/Official_documents/Acts_of_the_
Agency/Publication/ITC%20Monitoring%20Report%202013.pdf 

2  The ENTSO-E submitted its Work Programme for the period 
2014 through December 2015 to the Agency on 27 October 
2014. The Agency adopted its Opinion on this Work Programme 
on 18 December 2014, i.e. within two months of receipt.

http://www.acer.europa.eu/Official_documents/Acts_of_the_
Agency/Opinions/Opinions/ACER%20Opinion%2020-2014.pdf 

3  The Agency adopted its Opinion on the ENTSO-E 

Annual Report 2013 on 17 June 2014.

http://www.acer.europa.eu/Official_documents/Acts_of_the_
Agency/Opinions/Opinions/ACER%20Opinion%2012-2014.pdf 
4  The Agency adopted its Opinion on the ENTSO-E Winter Outlook 
Report 2013/14 and Summer Review 2013 on 25 February 2014.

http://www.acer.europa.eu/Official_documents/Acts_of_the_
Agency/Opinions/Opinions/ACER%20Opinion%2005-2014.pdf 
5  The Agency adopted its Opinion on the ENTSO-E Summer Outlook 

Report 2014 and Winter Review 2013/14 on 24 July 2014.

http://www.acer.europa.eu/Official_documents/Acts_of_the_
Agency/Opinions/Opinions/ACER%20Opinion%2015-2014.pdf 

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Annual monitoring Report on the implementation and 
management of the inter-TSO compensation fund

Opinions on the ENTSO-E’s Annual Work Programme 
and the ENTSO-E’s annual report

Opinions on the ENTSO-E’s Annual Summer 
and Winter supply outlooks

Opinion on the ENTSO-E’s Common network operation 
tools including a common incidents classification scale

Opinion on the ENTSO-E’s research and development plan

Opinion on the electricity Community–wide Ten-
Year Network Development Plan (TYNDP)

Opinion on the ENTSO-E’s Recommendations relating to the 
coordination of technical cooperation between Community 
and third-country transmission system operators

Report on monitoring the implementation of the electricity 
Community–wide TYNDP and the progress as regards the 
implementation of projects to create new interconnector capacity

Deliverables

Opinion on the ENTSO-E‘s draft Scenario 
Outlook & Adequacy Forecast

6  The Agency adopted its Opinion on the ENTSO-E Incident 

Classification Scale – Methodology 2014 on 19 September 2014.

http://www.acer.europa.eu/Official_documents/Acts_of_the_
Agency/Opinions/Opinions/ACER%20Opinion%2017-2014.pdf 

7  The Agency adopted its Opinion on the ENTSO-E 

Implementation Plan 2015-2017 of the Research and 
Development Roadmap 2013-2022 on 16 May 2014.

http://www.acer.europa.eu/Official_documents/Acts_of_the_
Agency/Opinions/Opinions/ACER%20Opinion%2011-2014.pdf 

8  The Agency adopted its Opinion on the ENTSO-E draft Ten 
Year Network Development Plan 2014 on 29 January 2015.

http://www.acer.europa.eu/Official_documents/Acts_of_the_
Agency/Opinions/Opinions/ACER%20Opinion%2001-2015.pdf 

9  The Agency did not receive the ENTSO-E’s recommendations 

relating to the coordination of technical cooperation between 
Community and third-country transmission system operators.

10  The Agency adopted its Opinion on the implementation of 

investments in electricity transmission networks on 30 July 2014.

http://www.acer.europa.eu/Official_documents/Acts_of_the_
Agency/Opinions/Opinions/ACER%20Opinion%2016-2014.pdf 
11  The Agency adopted its Opinion on the draft ENTSO-E Scenario 

Outlook and Adequacy Forecast 2014-2030 on 19 December 2014.

http://www.acer.europa.eu/Official_documents/Acts_of_the_
Agency/Opinions/Opinions/ACER%20Opinion%2021-2014.pdf 

The following two deliverables were delayed from the 
2013 Work Programme and implemented in 2014:
12  The Agency’s Opinion on the National Electricity 

TYNDP, adopted on 4 April 2014; 

http://www.acer.europa.eu/Official_documents/Acts_of_the_
Agency/Opinions/Opinions/ACER%20Opinion%2008-2014.pdf

13  The Agency’s Opinion on the appropriate range of transmission 
charges paid by electricity producers, adopted on 15 April 2014.

http://www.acer.europa.eu/Official_documents/Acts_of_the_
Agency/Opinions/Opinions/ACER%20Opinion%2009-2014.pdf 

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Gas

Deliverables

Opinions on the ENTSOG’s annual Work Programme 
and the ENTSOG’s Annual Report

Opinions on the ENTSOG’s common network 
operation tools including a common incidents 
classification scale and research plans

Opinions on the ENTSOG’s annual Summer 
and Winter supply outlooks

Reviews and Recommendations on national TYNDP regarding 
their (in)consistency with the Community-wide TYNDP

Opinions on the ENTSOG’s Recommendations relating to the 
coordination of technical cooperation between Community 
and third-country transmission system operators

Report on monitoring the implementation of the Community-
wide TYNDP and the progress as regards the implementation 
of projects to create new interconnector capacity

Legal basis

For all deliverables: Article 6(3)(b) of Regulation (EC) 713/2009

For Work Programme: Article 6(4) of Regulation (EC) 
713/2009 and Article 9(2) of Regulation (EC) 715/2009

Work Programme 
objective for 2014

Opinions on the submitted documents were regularly delivered during 
the previous years, except for an Opinion on network operation tools, 
including a common incidents classification scale and research plans 
and the Recommendation relating to the coordination of technical 
cooperation between Community and third-country transmission 
system operators, which were not submitted to the Agency.

Activities to be carried out upon submission of 
the relevant documents by the ENTSO-E.

Targets and 
deadlines 
(indicative)

Upon receipt of the 2014 Work Programme from the ENTSOG, the 
Agency will deliver its opinion within two months from the day 
of receipt (the work will be performed by the Agency’s staff in 
close cooperation with the relevant Agency’s working group).

Performance 
indicators

Risk assessment

Achievement 
against the target

Other opinions will be provided upon receipt from 
the ENTSOG of the relevant documents, within a 
reasonable time (usually two to three months).

Timely delivery of the reports and opinions.

The delivery is subject to the release of corresponding 
documents by the ENTSOG and to the availability of 
resources (taking into account the possible reprioritisation of 
activities for the tasks of Regulation (EU) No 347/2013).

The Agency delivered all deliverables within the planned deadlines. 
No opinion was required on network operation tools, including 
a common incidents classification scale and research plans and 
recommendations relating to the coordination of technical cooperation 
between Community and third-country transmission system operators, 
as these were not submitted to the Agency by the ENTSOG.
1  The Agency adopted its Opinion No 02/2014 on ENTSOG’s 
Winter Supply Outlook 2013-2014 on 30 January 2014. 

http://www.acer.europa.eu/Official_documents/Acts_of_the_
Agency/Opinions/Opinions/ACER%20Opinion%2002-2014.pdf

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Opinions on the ENTSOG’s annual Work Programme 
and the ENTSOG’s Annual Report

Opinions on the ENTSOG’s common network 
operation tools including a common incidents 
classification scale and research plans

Opinions on the ENTSOG’s annual Summer 
and Winter supply outlooks

Reviews and Recommendations on national TYNDP regarding 
their (in)consistency with the Community-wide TYNDP

Opinions on the ENTSOG’s Recommendations relating to the 
coordination of technical cooperation between Community 
and third-country transmission system operators

Report on monitoring the implementation of the Community-
wide TYNDP and the progress as regards the implementation 
of projects to create new interconnector capacity

2  The Agency adopted its Opinion on the ENTSOG’s Statutes and 
Rules of Procedure on the basis of the proposed amendments 
to the ENTSOG’s Articles of Association on 14 March 2014. 

http://www.acer.europa.eu/Official_documents/Acts_of_the_
Agency/Opinions/Opinions/ACER%20Opinion%2006-2014.pdf 

3  The Agency adopted its Opinion on the ENTSOG’s 

Annual Report 2013 on 16 May 2014.

http://www.acer.europa.eu/Official_documents/Acts_of_the_
Agency/Opinions/Opinions/ACER%20Opinion%2010-2014.pdf 

4  The Agency adopted its Opinion on the ENTSOG’s 
Summer Supply Outlook 2014 on 17 June 2014.

http://www.acer.europa.eu/Official_documents/Acts_of_the_
Agency/Opinions/Opinions/ACER%20Opinion%2013-2014.pdf 

5  The Agency adopted its Opinion on the ENTSOG’s Annual 

Work Programme 2015 on 20 November 2014.

http://www.acer.europa.eu/Official_documents/Acts_of_the_
Agency/Opinions/Opinions/ACER%20Opinion%2018-2014.pdf 

6  The Agency adopted its Opinion on the ENTSOG’s Winter 

Supply Outlook 2014-2015 on 18 December 2014.

http://www.acer.europa.eu/Official_documents/Acts_of_the_
Agency/Opinions/Opinions/ACER%20Opinion%2019-2014.pdf

7  The Agency adopted its Opinion on the Implementation of 

the Investments in Gas Network Development Plans, including 
Recommendations on national TYNDP regarding their (in)
consistency with the Community-wide TYNDP and Monitoring 
the implementation of the Community-wide TYNDP and 
Progress as regards the implementation of projects to create 
the new interconnector capacity on 23 December 2014. 

http://www.acer.europa.eu/Official_documents/Acts_of_the_
Agency/Opinions/Opinions/ACER%20Opinion%2022-2014.pdf 

Deliverables

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1.5 Guidelines for trans-European 
energy infrastructure

Deliverable

Opinions on the (electricity and gas) methodologies for the 
cost-benefit analysis (CBA) of infrastructure projects

Legal basis

Article 11(2) of Regulation (EU) No 347/2013

Work Programme 
objective for 2014

Preparatory activities were carried out in 2012-2013. 
Close collaboration with the ENTSOs was established for 
the purpose of preparing the CBA methodologies.

In electricity, the Agency published on 30 January 
2013 a position on the ENTSO-E’s ‘Guideline to Cost 
Benefit Analysis of Grid Development Projects’.

Targets and 
deadlines 
(indicative)

The Agency’s Opinions regarding the CBA methodology 
should be delivered within three months of receipt of the 
methodologies from the ENTSOs. The CBA methodologies 
were submitted by the ENTSOs to the Agency on 15 November 
2013. The opinions are therefore due by 15 February 2014.

Performance 
indicators

Opinion delivered within three months of receiving 
the CBA methodology from the ENTSOs.

Risk assessment 

Activity subject to additional human resources being assigned 
to the Agency. However, even in this case, the involvement of 
NRAs is essential to ensure the timely delivery of the Opinion.

Achievement 
against the target

The Agency adopted its Opinion on the ENTSO-E Guideline for cost 
benefit analysis of grid development projects on 30 January 2014.

http://www.acer.europa.eu/Official_documents/Acts_of_the_Agency/
Opinions/Opinions/ACER%20Opinion%2001-2014.pdf 

Opinion on the ENTSOG’s Methodology for a harmonised 
cost-benefit analysis was delivered on 13 February 2014. 

http://www.acer.europa.eu/Official_documents/Acts_of_the_Agency/
Opinions/Opinions/ACER%20Opinion%2004-2014.pdf 

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Activity

Legal basis

Sharing of good practices and recommendations on incentives 
on the basis of benchmarking best practice by the NRAs 
and common methodology to evaluate the incurred higher 
risks of investments in electricity and gas projects

Article 7(2) of Regulation 713/2009 and Article 
13(5) of Regulation 347/2013

Work Programme 
objective for 2014

Preparatory activities carried out in 2013 regarding methods of 
risk assessment and ensuring consistency between investment 
risk analysis and other infrastructure project-related work.

Targets and 
deadlines 
(indicative)

This deliverable was already included in the Agency’s Work Programme 
for 2013, which indicated the deadline as December 2013. However, 
the delivery of the document was postponed in the mid-term review of 
the 2013 Work Programme due to the limited resources of the Agency.

Delivery of the good practice document.

The delivery of the Recommendation was already postponed 
from 2013 to 2014. The involvement of NRAs is essential 
to ensure the timely delivery of the Opinion.

The good practice document was delivered in June 2014.

http://www.acer.europa.eu/Official_documents/
Acts_of_the_Agency/Recommendations/ACER%20
Recommendation%2003-2014.pdf (Recommendation on 
incentives and common risk evaluation methodology)

Performance 
indicators

Risk assessment 

Achievement 
against the target

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1.6 Activities which are subject to specific conditions

The activities listed in this section were either performed upon request by certain parties, as specified 
in the Third Package or in the TEN-E Regulation, or were triggered by certain external events. When 
these activities had to be performed, resources were re-allocated during the year from other activities.

Decisions on Cross-Border Cost Allocation (CBCA)

Deliverable

Decisions on investment requests including on CBCA 
decisions and notifications to the Commission

Legal basis

Article 12(6) and (7) of Regulation (EU) 347/2013 

Work Programme 
objective for 2014

When required, i.e. when the concerned NRAs jointly 
request this type of decision, or when they fail to reach an 
agreement within a predefined period (six months).

Targets and 
deadlines 
(indicative)

Expected completion date: up to three months from the date of referral; 
in the case of incomplete information the period can be extended 
by two months, following receipt of the complete information.

Performance 
indicators

Risk assessment 

Timely delivery and notification of the decision.

The delivery is subject to constraints on available resources. 
The Agency has not taken such decisions in the past; as a 
result the first ones could be more time-consuming.

Achievement 
against the target

The investment request for Gas Interconnector Poland Lithuania (GIPL) 
was referred to the Agency on 1 May 2014. Additional information 
was requested by the Agency in June-July and the Decision on the 
GIPL investment request, including the CBCA, was delivered on 
11 August 2014, i.e. within the expected completion deadline.

http://www.acer.europa.eu/Official_documents/Acts_of_the_
Agency/Individual%20decisions/ACER%20Individual%20
Decision%2001-2014.pdf (CBCA Decision on GIPL)

CBCA decisions adopted by NRAs were notified 
to the Commission without delay.  

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Opinions and Recommendations on the Agency’s own initiative

Deliverable

Opinions and Recommendations on its own initiative, 
whenever appropriate, for ensuring the proper functioning 
of the European Internal Energy Market (IEM)

Legal basis

Article 5 of Regulation (EC) No 713/2009

Work Programme 
objective for 2014

The Agency has the responsibility to issue Opinions and 
Recommendations on its own initiative, whenever appropriate, 
to ensure the proper functioning of the European IEM.

During 2013, the Agency initiated a review of the ‘Electricity Target 
Model’ and the ‘Gas Target Model’, the ‘blueprints’ for the design of 
the internal electricity and gas markets respectively. This review 
aims to identify those aspects of the Target Models which need 
to be improved in response to and to support, amongst other 
things, the increased penetration of renewable-based electricity 
generation and the recent development related to unconventional 
gas. This activity will continue in 2014 and may result in the 
Agency issuing a recommendation on its own initiative.

Targets and 
deadlines 
(indicative)

To be initiated when necessary or appropriate.

A recommendation following the review of the Electricity 
and Gas Target Models may be issued, depending 
on the results emerging from the review.

Delivery of Opinion or Recommendation.

This activity, not being in response to specific legal 
requirements, may need to be deprioritised as a result 
of binding constraints on available resources.

During 2014, the Agency developed the ‘Bridge to 2025’ initiative, 
looking at the trends and challenges facing the energy sector 
over the next ten years and the most appropriate regulatory 
response. After a pre-consultation in 2013, the Agency ran a public 
consultation in April-June 2014 and on 18 September 2014 issued 
a Recommendation on the Conclusions from this initiative. 

http://www.acer.europa.eu/Official_documents/Acts_of_the_Agency/
Recommendations/ACER%20Recommendation%2005-2014.pdf 

Performance 
indicators:

Risk assessment

Achievement 
against the target

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43ACER - ANNUAL ACTIVITY REPORT 20141.7 Wholesale market monitoring – REMITDeliverableEstablishment and administration of a European register of market participants Legal basisArticle 9 of REMITWork Programme objective for 2014Finalisation of CEREMP development in 2014. Targets and deadlines (indicative)Registration shall start no later than three months after the implementing acts are adopted.Performance indicatorsFull deployment and running of the IT-system for registration completed by the date of adoption of the implementing acts, to allow sufficient time to the NRAs and market participants to complete the first phase of the registration.Risk assessmentThe registration process takes place at a national level. The NRAs may not have sufficient resources to manage the strict deadline of three months to complete the first phase of registration, especially in countries with a high number of market participants. Practical solutions have to be adopted to ensure the completion of the registration process in the timeframe envisaged by REMIT.Achievement against the targetThe Agency’s registration system CEREMP was made available by the summer of 2014, The REMIT implementing acts were adopted on 17 December 2014. Traffic light44

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 Activity

Further development and maintenance of IT 
solutions for market surveillance, data collection, 
and data sharing of wholesale energy markets

Legal basis

Articles 7, 8 and 10 of Regulation (EU) 1227/2011

Work Programme 
objective for 2014

Development of the IT platform for market surveillance, 
data collection, and data sharing of wholesale energy 
markets started in 2013 and is to continue in 2014.

Targets and 
deadlines 
(indicative)

Performance 
indicators

Risk assessment

Market monitoring, data collection and data sharing shall 
start 6 months after the implementing acts are adopted. 

The timely availability and operation of the IT solutions.

Data collection will be extremely complex due to the large 
amount of data to be gathered and the diversity of sources. Many 
operational aspects have to be defined through the implementing 
acts. However, it is not possible to wait for formal approval of 
the implementing acts, as the IT-system would not be ready 
on time. Consequently, adjustments will be needed during the 
course of 2014 and requests for changes may be necessary.

Achievement 
against the target

REMIT implementation was on track in 2014. The implementing 
acts were adopted by the Commission on 17 December 2014.

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Activity

Preparation for the collection of trade, fundamental and 
other data, in connection with the REMIT implementing 
acts, as well as market surveillance activities

Legal basis

Articles 7 and 8 of Regulation (EU) 1227/2011

Work Programme 
objective for 2014

Delivery of Recommendations in 2012 and 2013. In 2014 
awaiting implementing acts to start data collection.

Targets and 
deadlines 
(indicative)

Performance 
indicators

Risk assessment

Data collection shall start six months after the 
implementing acts are adopted. 

Successful and timely data collection.

Data collection will be extremely complex due to the huge 
amount of data to be gathered and the diversity of sources. Many 
operational aspects have to be defined through the implementing 
acts. However, it is not possible to wait for formal approval of 
the implementing acts, as the IT-system would not be ready 
on time. Consequently, adjustments will be needed during the 
course of 2014 and requests for changes may be necessary.

Achievement 
against the target

The implementing acts were adopted by the Commission on 17 
December 2014. REMIT implementation was on track in 2014.

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Activity

Preparation for the sharing of data with the NRAs and 
other authorities and dissemination of information on 
the basis of transparent rules for such dissemination 

Legal basis

Articles 10 and 12 of Regulation (EU) 1227/2011

Work Programme 
objective for 2014

Targets and 
deadlines 
(indicative)

Performance 
indicators

Agreement on data sharing concept to be signed with the NRAs in 2014.

Sharing and dissemination of information with the 
entry into force of the implementing acts.

Operational reliability.

Risk assessment

Delays in establishing protocols and common 
security standards with the NRAs.

Limited resources for market monitoring in the NRAs.

Achievement 
against the target

Agreement on the data sharing concept was reached with the NRAs 
in June 2014 and the IT implementation continued throughout 2014.

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Ensuring operational reliability and professional secrecy 
concerning the information received by the Agency, by taking 
all necessary measures to prevent misuse of, and unauthorised 
access to, the information received and maintained in the 
Agency’s systems, by identifying sources of operational 
risk and by minimising them through the development 
of appropriate systems, controls and procedures

Activity

Legal basis

Article 12 of Regulation (EU) 1227/2011

Work Programme 
objective for 2014

Ensuring operational reliability and professional secrecy 
concerning the information received by the Agency.

Targets and 
deadlines 
(indicative)

Performance 
indicators

Operational Reliability Policy in place before data collection starts.

Ensuring operational reliability.

Risk assessment

Risk of leakage of highly sensitive trade data if 
adequate security measures are not in place. 

Achievement 
against the target

A consultancy contract was awarded in April 2014 to provide the 
Agency with IT consultancy services, including on operational reliability:

http://www.acer.europa.eu/The_agency/Public_Procurement/
Documents/ACER%20OP%20MMD%2009%20
2013%20Contract%20Award%20Notice.pdf

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Coordination of market monitoring activities of the NRAs, 
including at the regional level, without prejudice to their 
responsibilities, aiming to ensure that the NRAs carry out 
their tasks under REMIT in a coordinated and consistent 
way, including guidance to the NRAs and coordination of 
NRAs’ investigation activities on cross-border market abuse 
instances, including the promotion of best practices. 

Activity

Legal basis

Article 16(1) of Regulation (EU) 1227/2011

Work Programme 
objective for 2014

Coordination of market monitoring activities of 
the NRAs, including at the regional level.

Targets and 
deadlines 
(indicative)

Coordination of investigation of alleged cross-
border market abuse instances as required.

Performance 
indicators

Timely guidance, if needed (the 4th edition of the Agency 
Guidance will not be published during 2014).

Effective coordination of investigation of alleged 
cross-border market abuse instances.

Risk assessment

Risk of leakage of highly sensitive trade data if 
adequate security measures are not in place. 

Achievement 
against the target

The market monitoring handbook was finalised on 7 October 
2014. The coordination of an increasing number of cases in 2014 
(33 new cases were opened in 2014) was difficult to handle 
with the limited human resources available to the Agency.

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Activity

Cooperation with the ESMA, competent national financial 
market authorities and other authorities, and with 
supervisory authorities, international organisations 
and the administrations of third countries 

Legal basis

Articles 1(3), 10 and 16 of Regulation (EU)1227/2011

Work Programme 
objective for 2014

Cooperation with the ESMA, competent, national, financial, market 
authorities and other authorities, and with supervisory authorities, 
international organisations and the administrations of third countries 

Targets and 
deadlines 
(indicative)

Performance 
indicators

Good cooperation practices with relevant authorities.

Memorandum of Understanding concluded with relevant authorities.

Risk assessment

Risk of leakage of highly sensitive trade data if 
adequate security measures are not in place.

Achievement 
against the target

In 2014 the Agency agreed on the Memorandum of 
Understanding (MoU) with the US Federal Energy Regulatory 
Commission (FERC), which was signed in early January 2015: 

http://www.acer.europa.eu/Documents/REMIT_MoU_ACER_FERC.pdf

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Contributions to implementing acts and potential reviews 
of REMIT, in particular according to Article 6 of REMIT, in 
view of potential needs to align REMIT definitions with 
new relevant Union legislation in the fields of financial 
services and energy, or in view of new developments on 
wholesale energy markets or of REMIT implementing acts

Activity

Legal basis

Article 7(3) of Regulation (EU) 1227/2011

Work Programme 
objective for 2014

Targets and 
deadlines 
(indicative)

Contributions to implementing acts and potential reviews of REMIT 

Contributions to implementing acts and potential reviews of 
REMIT, in particular according to Article 6 of REMIT, in view of 
potential needs to align REMIT definitions with new relevant Union 
legislation in the fields of financial services and energy, or in view 
of new developments on wholesale energy markets or of REMIT 
implementing acts to be initiated when necessary or appropriate.

Performance 
indicators

Timely contributions to the Commission.

Risk assessment

No appreciable risk.

Achievement 
against the target

Contributions to the implementing acts were 
provided to DG Energy at the technical level, including 
through several public consultations in 2014: 

http://www.acer.europa.eu/Official_documents/
Public_consultations/Pages/PC_2014_R_05.aspx

http://www.acer.europa.eu/Official_documents/
Public_consultations/Pages/PC_2014_R_04.aspx

http://www.acer.europa.eu/Official_documents/
Public_consultations/Pages/PC_2014_R_02.aspx

The implementing acts were adopted by the 
Commission on 17 December 2014.

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Deliverable

Annual Report on the Agency activities under REMIT 

Legal basis

Article 7(3) of Regulation (EU) 1227/2011

Work Programme 
objective for 2014

The Agency shall submit, at least on an annual basis a report to the 
Commission in which the Agency shall assess the operation and 
transparency of different categories of market places and ways of 
trading, and may make recommendations to the Commission as 
regards market rules, standards and procedures which could improve 
market integrity and the functioning of the internal market. It may 
also evaluate whether any minimum requirements for organised 
markets could contribute to enhanced market transparency.

Targets and 
deadlines 
(indicative)

Expected submission of the 2nd Annual Report of REMIT: Q3/Q4 2014.

Number of downloads on the Agency’s website and on the EU 
Publications Office’s website: >10% increase compared to 2013.

Reader survey: 2/3 majority of respondents satisfied or highly satisfied.

Performance 
indicators

Timely submission of the Annual Report on REMIT implementation 
and of the public consultations referred to above.

Risk assessment

No appreciable risk.

Achievement 
against the target

The Annual Report on the Agency activities under 
REMIT was published on 10 June 2014.

http://www.acer.europa.eu/Official_documents/Acts_of_the_Agency/
Publication/REMIT%20Annual%20Report%202014.pdf

The number of downloads increased by 27% when 
compared with the previous year. Survey implementation 
was delayed due to limited resources.

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1.8 Regulatory cooperation

Deliverable

Regulatory cooperation

Work Programme 
objective for 2014

1  Maintain high efficiency in the working method of the BoR and 
the Agency’s Working Groups (AWGs) to facilitate their overall 
operation with a view to promoting regulatory cooperation. 

2 

Increase public awareness of the BoR’s operations 
through debriefings. Improve the format of meetings and 
agendas, facilitate the exchange of information through 
dedicated folders, and provide Secretariat debriefings on 
the items in the agenda included for information.

3  Develop, where appropriate, beyond the existing working 

arrangements, cooperation tools for the NRAs (including 
at regional level) and their strong links with the Agency 
in new areas such as monitoring the markets for the 
effective implementation of the network codes. 

4  Contribute to developing regional cooperation further through 
the dedicated ERI and GRI Groups, in line with the agreed 
objectives set out in the cross-regional plans in electricity 
and in gas, with a new focus on new pilot projects. 

5  Enable the sharing of best practices between the NRAs 

and the Agency on issues of common interest. 

6  Foster exchange of experience with the regulatory associations 

outside the EU, where necessary, and on areas of mutual 
interest (e.g. FERC on market monitoring activities).  

7  Consolidate regulatory cooperation and working arrangements 
in the context of the energy infrastructure work and a consistent 
framework across the regions and corridors in undertaking the 
Agency’s new tasks under the proposed TEN-E Regulation. 

8  Reinforce cooperation between the NRAs under REMIT, 
both at EU and regional level, through MOUs, and 
potential synergies in services to avoid duplication.

Targets and 
deadlines 
(indicative)

Throughout the year.

Performance 
indicators

Positive feedback from a survey measuring the NRAs’ 
satisfaction with the Agency’s work in these areas.

Risk assessment

The Agency relies on the voluntary participation of the NRAs in the 
Agency’s Working Groups and in the coordination groups for the 
regional initiatives, focusing primarily on the early implementation 
of the network codes, and in the regional priority corridors 
of the TEN-E Regulation. Furthermore, as a result of the Third 
Energy Package and REMIT, the Agency and the NRAs are under 
an obligation to mutually cooperate. Without this cooperation, 
the Agency would lack the expertise of the NRAs, which have 
extensive knowledge of their national markets, and would be 
obliged to overstretch its own resources. It would also not be 
able to ensure consistency from the early stages. The Agency 
would therefore run the concrete risk of not delivering on its Work 
Programme, which has been prepared taking into account the NRAs’ 
support provided through the above cooperation platforms.

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Deliverable

Regulatory cooperation

Achievement 
against the target

1  Maintain high efficiency in the working methods of the BoR and 
AWGs to facilitate their overall operation and contribution to the 
Agency’s work with a view to promoting regulatory cooperation. 

During 2014, the BoR, AWGs and task forces provided an efficient 
platform for the cooperation of NRAs within the Agency, bringing 
together 230 experts and senior officials in the 28 NRAs. 

The Agency undertook organisational improvements to increase 
efficiency, such as streamlining the agendas to allow more time for 
discussions on key initiatives (including EU initiatives) and providing 
Secretariat debriefings on the items in the agenda included for 
information. Awareness of members on key EU initiatives and 
work was supported through dedicated meeting folders/libraries 
which bring together documents of interest for the BoR members.  

A revision of the BoR Rules of Procedure came 
into effect in February 2014 to clarify and improve 
aspects of the electronic approval process.

During 2014, four AWGs — on Electricity (AEWG), on Gas 
(AGWG), on Market Integrity and Transparency (AMIT WG), 
and on Implementation, Monitoring and Procedures (AIMP 
WG)— continued their work. Each of them met typically on a 
monthly basis, with 27 meetings in total held over the course 
of 2014. Also, over 20 different task forces, work streams and 
project teams brought together experts and reported to the 
AWGs. This collaboration facilitated a common understanding 
on the issues at stake and provided a valuable contribution to 
the timely and qualitative preparation of the Agency’s acts. 

2  Contribute to developing regional cooperation further 

through the dedicated Electricity Regional Initiative (ERI) and 
Gas Regional Initiative (GRI) Groups, in line with the agreed 
objectives set out in the cross-regional plans in electricity 
and in gas, with a new focus on new pilot projects. 

In 2014 the Agency cooperated with NRAs at regional level 
to ensure the compatibility of regulatory frameworks within 
and between regions with the aim of achieving a competitive 
IEM. The work of the Agency under the regional initiatives (RIs) 
focused on the early implementation of the Network Codes, on 
fostering market integration by monitoring and facilitating market 
integration projects, as well as other projects and activities at 
national and regional level, and in line with the regional work 
plans. Since its creation, the Agency coordinated the regional 
frameworks with two dedicated Regional Coordination Groups, 
ERI and GRI, composed of representatives from the Commission, 
NRAs and the Agency, and led by the Heads of Department in 
the Agency. They aimed specifically at coordinating regional 
cooperation and, in particular, monitoring progress in the cross-
regional roadmaps on the early implementation of network codes 
to foster integration at regional and cross-regional level and to 
ensure that the activities and projects undertaken in the different 
regions were consistent. These include the four cross-regional 
roadmaps for electricity (implementation of the Target Models 
for CACM) and the roadmap for the early implementation of the 
Capacity Allocation Mechanisms in gas. In 2014, these groups 
met on a frequent basis, and provided regular reports to the 
Director and to the BoR. The most important achievement in 
2014 was the implementation of the European Price Coupling. 

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Deliverable

Regulatory cooperation

3  Foster exchange of experience with the regulatory associations 

outside the EU, where necessary, and on areas of mutual 
interest (e.g. FERC on market monitoring activities).  

In 2014 the Agency maintained links for cooperation with 
third countries outside of the EU. During the course of 2014 it 
participated in the EU-US Energy Roundtable in Boston on 13-14 
May 2014. This annual event brings together representatives from 
the Agency, CEER, NARUC, and FERC for approximately two days to 
discuss topics of common interest from a regulatory perspective.

In 2014 the Agency continued to foster close links with the 
NRAs from the Energy Community (EnC) (the latter has also 
been reflected in an EC Recommendation2) and from Norway, 
without prejudice to the legal requirements of the Agency’s 
founding Regulation regarding the formal participation of 
third countries in the Agency. The Agency also participated 
in the Electricity and Gas Regulatory Fora of the EnC. 

4  Consolidate regulatory cooperation and working arrangements 
in the context of the Energy Infrastructure work and a consistent 
framework across the regions and corridors in undertaking the 
Agency’s new tasks under the proposed TEN E Regulation.

An AWG leaders’ away day was organised on 11-12 June 2014 in 
Bled. It provided an opportunity for AWG leaders and senior Agency 
staff to reflect on the overall role of the AWGs, the functioning 
of the AWGs and their integration into the Agency’s activities, 
as well as to brainstorm ideas for improvements to reinforce 
collaboration and participation of all NRAs in the AWGs and their 
substructures. The results of the Internal Audit Service (IAS) audit 
of the Agency in 2014 were discussed with a view to assessing 
the efficiency and effectiveness of the internal working practices 
set up by the Agency in cooperation with the NRAs, in particular 
on developing framework guidelines and opinions on network 
codes. Preliminary interviews were conducted in January 2014 
and a survey was subsequently conducted in February 2014 with 
the NRAs’ representatives in the Agency’s Gas and Electricity WGs 
& TFs, and Electricity Work Streams: 34 replies were received. 

The results of the survey indicated an overall positive assessment 
of the cooperation between the NRAs and the Agency, as well 
as some suggestions for improvement on the efficiency and 
effectiveness in preparing the Agency’s work, including regarding: 
more comprehensive project management (lead drafters, project 
plans with milestones, timelines, next steps, communication, 
transparency and work sharing); common understanding of 
respective roles and responsibilities; better involvement of as 
many NRAs as possible; and other improvements which would 
benefit from a regular exchange of experience between the 
Agency’s departments. These results and discussion at the 
away day led to a renewal of the joint commitment and mutual 
expectations by the Agency’s and NRAs’ experts, which were 
subsequently reflected in an action plan on improvements to 
their cooperation. The proposed actions related to: cooperation 
between the NRAs, their experts, the Agency’s staff, Heads of 
Department (HoDs) and the Director; improvements to work 
planning and the project management process; and reporting on 
the outcomes of meetings. It was agreed that these improvements 
would be followed up throughout 2015, including through 
a high-level workshop dedicated to NRA cooperation. 

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1.9 Stakeholder involvement

The Agency regularly responded to questions and requests it received from stakeholders.

Deliverable

Relations with stakeholders Relations with stakeholders

Work Programme 
objective for 2014

Part of stakeholders’ involvement in the Agency is their input 
and replies to the Agency’s public consultations. In addition, the 
Agency receives requests for information or is informed on specific 
issues, usually related to their market situation or even asking 
the Agency to act. As part of good administrative behaviour, the 
Agency aims to respond to these requests within 15 days.

Targets and 
deadlines 
(indicative)

Performance 
indicators

Requests from stakeholders.

Ongoing

Responses to stakeholders provided within 15 working days.

Risk assessment

No appreciable risk.

Achievement 
against the target

In 2014 all requests for information or clarifications 
stemming from energy companies, other entities (e.g. law 
firms) or academics were answered within 15 days. 

Requests related to specific market issues in a Member State 
were also answered within 15 days. In one case the stakeholder 
received a holding reply, and the final reply was received 
with minimal delay thanks to internal coordination. 

Requests related to REMIT were dealt with by the IT helpdesk 
under the conditions specified by REMIT. Due to a large 
number of questions (135 received in the REMIT inbox and 189 
to the established Central Service Desk in 2014) a regularly 
updated Q&A folder was published on the web site. 

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2.1 Administrative Board

The composition of the Administrative Board (AB) in 2014 was as follows: 

Members appointed by the Council

Member

Mr Razvan Eugen Nicolescu, Chair

Mr Piotr Grzegorz Woźniak, Vice-Chair

Mr Guido Bortoni

Mr Guy Lentz

Mr Jochen Penker

Alternate

Mr Kristian Moller

Mr Detlef Dauke

Mr Alfonso Gonzalez Finat

Mr Pál Kovács

Mr Romas Švedas

Members appointed by the EP

Mr Luis-Martin Oar

Mr Uwe Leprich

Mr Rene Tammist

Mr António Jorge Viegas de Vasconcelos

Members appointed by the EC

Mr Dominique Ristori

Mr Klaus-Dieter Borchardt

Ms Agnieszka Kaźmierczak

Ms Paloma Aba-Garrote 

In 2014 the AB met four times (on 19 March, 10 June, 18 September, and 18 December). 

It adopted 19 decisions: 

1

2

3

4

5

6

7

8

AB Decision on the appointment of a new BoR member* 

AB Decision amending AB decision No 01/2011 
on the support granted to ACER staff members in 
respect to kindergarten and school fees**

AB Decision on the appointment of a new 
BoR member and alternate*   

AB Decision on the estimate and expenditure for 2015

AB Decision on the MSPP 2015-2017

AB Decision on the appointment of a new 
BoR member and alternate*   

14/01/2014

13/02/2014

28/02/2014

19/03/2014

19/03/2014

11/04/2014

AB Decision on the appointment of a new BoR member* 

13/06/2014

AB Decision on the appointment of a new BoR alternate member*  

30/06/2014

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9

10

11

12

13

14

15

16

17

18

19

AB Decision on the appointment of a new BoR member*

AB Decision on the support granted to ACER staff 
members in respect to kindergarten and school 
fees and repealing AB Decision No 01/2011

05/09/2014

18/09/2014

AB Decision on the appointment of a new BoR alternate member*

14/10/2014

AB Decision on the adoption of transfer of appropriations in the 
budget of the Agency for the Cooperation of Energy Regulators 

15/11/2014

for the Financial Year 2014**

AB Decision on the ACER Anti-fraud strategy

AB Decision on the ACER Whistleblowing Strategy

AB Decision on the language regime of the Agency

AB Decision on the adoption of the Implementing 
Rules to the Financial Regulation of ACER

18/12/2014

18/12/2014

18/12/2014

18/12/2014

AB Decision on the modification of the establishment plan of ACER

18/12/2014

AB Decision on the permission to the Director 
to engage in academic cooperation with the 
Florence School of Regulation in 2015

AB Decision on the adoption of the Budget for the financial year 
2015 of the Agency for the Cooperation of Energy Regulators

18/12/2014

18/12/2014

*Appointment  by  the  Chairman,  acting  pursuant  to  the  delegatory  powers  granted  by  the  AB  by 
Decision AB 05bis/2010 of 21 September 2010.  

**Adopted by written procedure, following the Chairman declaring it urgent. 

 The AB adopted one Opinion: 

1

AB Opinion on the approval of the Financial 
Accounts for the financial year 2013 

10/06/2014

 The most significant risks for the Agency in 2014 were the lack of resources to implement REMIT. 
This risk was discussed at all four AB meetings in 2014 and important controls were implemented 
(letters were sent to the institutions, meetings with decision-makers took place and presentations 
were made in the ITRE Committee of the European Parliament and in the Council at Working group 
level). The second most important risk for the Agency in 2014 was the need to prevent (potential) 
conflicts of interest. This risk was discussed in three out of the four meetings of the AB and led to the 
adoption (in early 2015) of a fully-fledged conflict of interest policy.  

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2.2 Institutional relations and communication

As regards institutional relations, in 2014 the Agency continued to work with the EP ITRE Com-
mittee, where a delegation visited the Agency on 19-20 March 2014. Also, the Agency presented its 
activities at the Energy Working Party on 26 May, during the Greek Presidency.

Towards the end of the year, the new European Commission and Parliament brought new impetus to 
the EU Energy policy. Therefore, the Agency reinforced its communication effort vis-à-vis these Insti-
tutions to build a constructive relationship with the new institutional actors to ensure a common vi-
sion on the future of the EU energy market. In particular, with regard to the European Parliament, the 
Agency presented the main findings of its 2014 MMR to the ITRE Committee on 5 November 2014. 
Moreover,  the  Director  and  the  BoR  Chair  introduced  the  Agency’s  ongoing  work  and  forthcom-
ing challenges to the newly elected MEPs of the ITRE Committee in November and to the reformed 
Contact Group with an opening meeting on 9 December 2014.

The most important international development was the Director’s attendance at the EU-US Energy 
Regulators Roundtable in Boston on 12-15 May 2014. Also, the Agency took part in the EnC Electric-
ity Forum in Athens on 3 June 2014 and in the EnC 

The Gas Forum was held in Ljubljana on 7 October 2014. The Agency also continued its cooperation 
with the EnC Secretariat and a meeting with them was held on 3 November 2014.    

The Agency’s external communication takes two main forms: involving the NRAs and stakeholders in 
its work, and communicating with the general public directly or through the media.

As  in  previous  years,  the  Agency  has  extensively  engaged  stakeholders  in  its  activities,  including 
through public consultations and workshops.

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Public Consultations

The Agency consulted stakeholders in respect of many of its activities, well beyond the legal require-
ment laid down by legislation3. In 2014, all public consultations were carried out online. 

Public consultations run by the Agency in 2014:

TITLE

START DATE

END DATE

Public consultation on ACER’s Trade 
Reporting User Manual (TRUM) for 
trade reporting under REMIT

Public Consultation on the preliminary 
scoping on potential Framework 
Guidelines on Rules for Trading

27/03/2014

05/05/2014

14/04/2014

12/05/2014

Public Consultation on European Energy 
Regulation: A Bridge to 2025

29/04/2014

16/05/2014

Consultation on ACER’s Manual of Procedures 
on Fundamental Data Reporting under REMIT

24/06/2014

05/08/2014

Public consultation on ACER’s 
Transaction Reporting User Manual 
(TRUM) and RRM Requirements for 
transaction reporting under REMIT

22/06/2014

02/09/2014

Public Consultation on the provisional 
REMIT list of organised market places

14/11/2014

11/12/2014

Joint Public Consultation ACER/ENTSO-E 
on the establishment of European Network 
Code Stakeholder Committees

12/12/2014

23/01/2015

3  Article 10 of Regulation (EC) No 713/2009

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Workshops

In  2014,  the  Agency  continued  promoting  the  involvement  of  stakeholders  in  its  activities  through 
workshops. They are usually organised in conjunction with public consultations or as part of the pro-
cess to develop opinions on Network Codes. In this latter role, they are organised during the scoping 
phase of official documents and they represent an occasion for the Agency to present its views on the 
main policy options under consideration, as well as for the Agency to collect, at an early stage, opinions 
from stakeholders on essential topics. Most of the workshops were organised in Ljubljana. Whenever 
possible, workshops were web-streamed to include as many participants as possible. 

Workshops organised by the Agency in 2014:

Workshop

Public workshop on the Network 
Code on Electricity Balancing

2nd ACER Gas Target Model 
Stakeholder Workshop

No of 
registrations

Web 
streaming

Date

53

69

YES

30/01/2014

YES

19/03/2014

ENTSO-E and ACER workshop on the 
Bidding Zones Review Process

N.A. Logistics 
run by 
ENTSO-E

/

21/03/2014

7th Workshop on REMIT implementation

125

3rd Gas Target Model 
Stakeholders Workshop

Workshop on the Network Code on High 
Voltage Direct Current Connections and 
DC-connected Power Park Modules

8th ACER Workshop on REMIT 
implementation

9th Public Workshop on 
REMIT implementation

YES

YES

03/04/2014

15/05/2014

YES

19/05/2014

YES

16/07/2014

90

19

97

112

YES

10/12/2014

On average around 100 stakeholders participated in each workshop. 

In addition, the Agency organised three roundtable meetings on REMIT implementation in Ljubljana: 
(cid:116)(cid:1) Roundtable meeting on REMIT (23/09/2014)
(cid:116)(cid:1) Roundtable meeting on REMIT (24/09/2014)
(cid:116)(cid:1) Technical roundtable meeting on REMIT (26/11/2014)

Three stakeholder groups were organised to discuss questions on data collection:
(cid:116)(cid:1) Third party reporting entities
(cid:116)(cid:1) Organised market places
(cid:116)(cid:1) Associations of market places

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REMIT specific formats: the Pilot project progress meetings, public workshops and roundtables 

To prepare the data collection for assessing and monitoring wholesale energy markets according to 
REMIT, the Agency initiated the REMIT implementation pilot project in 2013. Its main purpose was to 
gather valuable input from parties that were involved in data collection under REMIT. In 2014, three 
REMIT Pilot Project progress meetings were held at the Agency and each brought together more 
than 20 participants.

Deliverable

Events: Workshop on the Outline of the 2015 Work Programme

Work Programme 
Objective

The Workshops to present the Work Programme Outline held in 
Ljubljana on 6 June 2012 and on 6 June 2013 were attended by 
three and one participant, respectively. The Work Program objective 
for 2014 was, therefore, to raise the level of participation. 

Targets and 
deadlines 
(indicative)

Performance 
indicators

June 2014.

Number of participants > 5.

Risk assessment

Low participation of stakeholders due to difficulties in 
accessing Ljubljana, where the event is held.

Thirty participants attended the presentation through web-streaming.  

Achievement 
against the target

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Website 

Activity

Agency Website

Work programme 
objective for 2014

Improving the website

Targets and 
deadlines 
(indicative)

Enhance the capability of the website in the following areas:
(cid:116)(cid:1) Online surveys
(cid:116)(cid:1) Dedicated workspace for meetings/workshops
(cid:116)(cid:1) More dynamic features for news and announcements
(cid:116)(cid:1)

Improve user-friendliness

Completion of the migration from ACERnet to 
the new Website launched in 2012.

Performance 
indicators

Website hits: 5% increase with respect to 2013.

Online survey: 2/3 majority of respondents satisfied or highly satisfied.

Risk assessment

Timely delivery by external contractors of 
outputs related to the website. 

Achievement 
against the target

The old Agency’s website was finally decommissioned by 1 July 
2014. All the Agency’s activities are now hosted on the new 
website. All content was migrated and the taxonomy was updated 
to include new emerging topics and new Agency Activities.

A new template for Working Group and Task Force meetings was 
developed and deployed to the system, to allow better use of the 
system. A new call for tender was launched for the maintenance of the 
websites in the third quarter of 2014 and was awarded in early 2015.

In 2014, the Agency compiled a list of more than 40 new 
functionalities for the website, including those based on 
stakeholder feedback, to be developed under the new 
Framework Contract and rolled out into production in 2015.

There was a 473.11% increase in the number of hits compared to 2013 
(number of hits in 2013: 31 636, number of hits in 2014: 181 311). 
Online surveys were not carried out due to the lack of resources.

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Info-flashes, press releases and the media

Activity

Relations with Journalists

Work Programme 
Objective 

Another of the Agency’s most useful communication tools 
are info-flashes. The Agency informs stakeholders and 
interested parties of the official documents published by the 
Agency online, as well as reports, workshops and conferences 
organised by the Agency. The objective in 2014 was to raise 
the number of info-flashes and the number of subscribers.  

Targets and 
deadlines 
(indicative)

Performance 
indicators

Info-flashes, request from journalists.

Ongoing

Number of Info-flashes: >40.

Subscribers to Info-flashes: 5% increase compared to 2013.

Risk assessment

No appreciable risk.

Achievement 
against the target

In 2014 over 2 750 stakeholders subscribed to the Agency’s info flashes. 
This represents a 16.5% increase from the previous year. A total of 
69 info-flashes containing 92 news items were issued in 2014.

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Agency’s major events in Ljubljana and Brussels

Deliverable

Events: Annual Conference

Work Programme 
Objective

Organising the 3rd annual conference in Ljubljana

Targets and 
deadlines 
(indicative)

Performance 
indicators

March - May 2014.

Number of participants: > 150.

Participant satisfaction survey: 2/3 majority satisfied or highly satisfied.

Risk assessment

Potential difficulties in attracting quality speakers, which may 
reduce interest in the event and the level of participation.

Achievement 
against the target

‘REMITage: The age of REMIT’ was the main theme of the 3rd Annual 
Conference of the Agency, held on 10 June 2014 in Ljubljana. The 
event brought together key representatives from the EU institutions, 
energy sector stakeholders and market players. It focused on 
effective implementation of REMIT which is an integral part of 
the creation of a well-functioning IEM. Around 180 participants 
attended, 90% of which were satisfied with the event. 

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In addition to the Annual conference, the Agency, in cooperation with CEER, organised a presen-
tation of its Conclusions Paper ‘Energy Regulation: A Bridge to 2025’, which took place on 23 Sep-
tember in the Auditorium of the Royal Museums of Art and History in Brussels. The event was also 
broadcast live via web-streaming. The Paper contained the European energy regulators’ conclusions 
on challenges facing the electricity and gas sectors over the coming decade and on the appropriate 
regulatory response within the framework of Europe’s IEM. 

The Conclusions Paper covered a wide range of aspects of the gas and electricity sectors, including 
the changing face of electricity generation in the EU, the changing role of Distribution System Opera-
tors, consumer empowerment and protection, the achievement of retail markets, and a chapter on 
governance of the internal European gas and electricity markets. 

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Other publications 

Deliverable

Print publications: Annual Activity Report 2013

Work Programme 
objective 

To submit the Annual Activity Report 2013 on 
time with a high level of satisfaction 

Targets and 
deadlines 
(indicative)

By 15 July 2014.

Performance 
indicators

Number of downloads on the Agency’s website and on the EU 
Publications Office’s website: >10% increase compared to 2013.

Reader survey: 2/3 majority of respondents satisfied or highly satisfied.

Risk assessment

No appreciable risk.

Achievement 
against the target

The Agency’s Annual Activity Report for 2013 was adopted by its AB 
on 10 June 2014 and submitted to the EU institutions by 15 June. 
None of the AB members had any remarks to make on the report. 
Moreover, the Internal Audit Service considered one of the Report’s 
parts (reporting on the building blocks) to be best practice.  

There were 126 downloads (of which four from the 
extranet) of the publication until 31 December 2014. 
This was 17% lower than in 2013 (153 downloads). 

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Internal communication

Deliverable

Improvement of the Agency’s intranet as a tool 
to support internal communication

Work Programme 
objective

Improvement of the Agency’s intranet

Targets and 
deadlines 
(indicative)

New features and services based on staff needs and demands.

Performance 
indicators

Question included in the annual staff survey on the 
level of information shared by line managers.

2/3 of participating staff satisfied or highly satisfied.

Achievement 
against the target

The overall outcome of the 2014 survey indicated 61% satisfaction 
with the information shared by line managers. As a consequence 
two staff meetings were dedicated to the results of the engagement 
survey. Only minor improvements were identified as necessary. The 
staff wanted to be informed of upcoming Directors’ decisions. It 
was agreed that a list of the forthcoming Director’s decisions would 
be made available on the intranet, and this was implemented. 

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Deliverable

Internal newsletter

Work Programme 
objective

Improving internal communication with the 
publishing of the internal newsletter

Targets and 
deadlines 
(indicative)

On a monthly basis.

Performance 
indicators

Staff satisfaction measured through a question on 
the internal newsletter in the staff survey.

2/3 of participating staff satisfied or highly satisfied.

100% positive feedback regarding the internal newsletter was received.

Achievement 
against the target

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2.3 Budgetary and financial management 

Deliverable

Budget implementation

Work Programme 
objective

The Agency’s operations are fully funded from the general EU budget 
through an annual subsidy. For the 2014 financial year this subsidy 
amounted to EUR 10 880 000 (EUR 11 930 220 in 2013). An amount of 
EUR 12 496.29 stems mainly from recovered allowances, as a result of a 
retrospective application of remuneration adjustments from July 2011 
and was recognised as assigned revenue. In addition, interest on the 
bank account balance received during the year amounting to EUR 3 
464.17 were recorded as revenue. No agreement was reached for any 
contribution from the EFTA States to the Agency. The Agency’s internal 
processes and accounts were regularly audited by the Commission’s 
Internal Audit Service (IAS) and the European Court of Auditors (ECA).

Targets and 
deadlines 
(indicative)

The Agency’s targets for 2014 are to achieve:

(cid:116)(cid:1)

a high level of budget implementation for both 
commitment and payment appropriations,

(cid:116)(cid:1) positive evaluation results from both IAS and ECA.

Performance 
indicator(s)

At least 95% execution of 2014 commitment appropriations.

Minimum 75% execution of 2014 payment appropriation.

Positive opinion of the IAS.

Unqualified opinion from the ECA.

Achievement 
against the target

To ensure the achievement of the Work Programme objectives, 
a number of budgetary transfers took place during the 2014 
financial year to reallocate resources from areas where budgetary 
savings were identified towards areas of scarce resources. 
There were three lots of approved budgetary transfers made 
both within and between titles, including one budget transfer 
above the 10% limit, which was approved by the AB. 

From the appropriations carried over from the previous year 
(EUR 5 075 003) 97.07% were implemented by the end of 2014 
and the difference was returned to the general EU budget. 

The level of execution of payment appropriations was 69.84% 
lower than the 75% target. Within Title 2 this was due to the 
renewal/negotiation of the Agency’s annual contracts towards 
the end of the year. Within Title 3 this was due to the complexity 
and multi-annual REMIT project, which made it difficult to 
apply the budget implementation annuality principle.

Appropriations amounting to EUR 2 736 510 from the 2014 allocated 
budget were carried forward into 2015 to cover the legal obligations 
the Agency had towards its suppliers that were open at year end, 
with the majority of them being REMIT-related expenditure.

No interest for late payments was paid by the Agency during 2014.

The 2014 IAS audit resulted in six recommendations, which 
were agreed to be implemented in an action plan.  

In 2014, the ECA made three comments on the 2013 annual 
accounts. The Agency addressed all recommendations 
and reported their implementation to the ECA.

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2.4 Human Resources management (HR)

The Agency carried out its first benchmarking exercise for 2014 in-line with the provisions of Article 
29(3) of the Framework Financial Regulation (FFR), and applied the Methodology for agencies’ job 
screening,  adopted  by  the  Heads  of  Administration  of  EU  Agencies  Network,  as  well  as  the  2014 
Methodology for the Commission’s job screening of 19 December 2013.

The  snapshot  for  the  screening  exercise  was  taken  on  31  December  2014.  As  prescribed  by  the 
Methodology for agencies’ job screening, it focused on the ratio of jobs in the area of administrative 
support and in the area of coordination (overheads). 

In-line with the methodology guidelines, the posts counted in the screening exercise include:
(cid:116)(cid:1) all establishment plan posts (irrespective if occupied, vacant, or even if unused job quota); 
(cid:116)(cid:1) other types of statutory links or contracts when occupied by a jobholder: contract agents, sec-

onded national experts, trainees; 

(cid:116)(cid:1) jobs occupied by interim staff or by external service providers.

The distribution of the total 86 posts in the Agency as at the snapshot taken on 31 December 2014 
according to the three job type categories was as follows:
1. Administrative support and coordination – 18 posts, representing 20.93% of the total posts.
2. Operational – 60 posts, representing 69.77% of the total posts.
3. Neutral – 8 posts, representing 9.30% of the total posts.

The results from the benchmarking exercise are presented in Annex VI.

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Activity

Human Resources

Work Programme 
objective

In addition to the performance of the first benchmarking 
exercise, a number of major HR events took place, resulting 
in changes to the Agency’s establishment plan and the 
introduction of major new HR policies and procedures. 

In particular, in 2014, following the approval by the AB, the Agency’s 
establishment plan was modified within the 10% limit to further align 
the grades of Team Leaders across the operational departments. 

In an attempt to mitigate the risks related to human resources, 
the Agency decided to further support its staff and to 
increase the Agency’s attractiveness on the job market by 
fully covering school fees and by other measures. This was 
achieved through the AB’s decision on the support granted to 
the Agency’s staff regarding kindergarten and school fees, and 
by the Director’s Decision on Personal initiative training.

Targets and 
deadlines 
(indicative)

The Agency’s targets for 2014 were to:

Complete recruitment of the additional resources in 2014 required 
to fulfil the new tasks assigned under the TEN E Regulation. 

Performance 
indicator(s)

Potential risks

Successfully complete the Annual performance 
appraisal exercise to be carried out in 2014.

Achieve at least 90% of the recruitment goals on time.

100% of the Agency’s staff were subject to 
performance appraisals in the 2014 exercise.

The attractiveness of job positions at the Agency was significantly 
downgraded due to the reduction in the correction coefficient for 
Slovenia. Due to that fact the package offered by the Agency did not 
appear competitive against industry standards and a high number of 
applications came from lower qualified or junior candidates. In addition, 
some staff members left the Agency for other EU institutions, indicating 
that despite being on a lower grade they would receive higher salaries 
in other EU institutions, which better reflects the cost of living. 

Furthermore, the delay by the Slovenian government in fulfilling 
the Seat Agreement’s provisions to establish a European School 
pushed the responsibility to provide adequate solutions for 
schooling staff members’ children onto the Agency. 

Moreover, the limited range of international education opportunities 
for children of prospective applicants and the difficulties in finding 
suitable employment for their spouses/partners proved to be a 
major barrier in attracting suitably qualified staff to Ljubljana. 

Achievement 
of the target

In 2014, 16 selection procedures were launched to meet 
the target of recruiting additional resources. The overall 
recruitment target at the end of the year was 94.81%. 

100% of eligible staff members took part in 
the 2014 annual appraisal exercise. 

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2.5 Assessment by management 

In 2014, the Agency continued to further strengthen its existing tools, policies and procedures to 
manage, control and monitor the achievement of its strategic objectives and key milestones, and the 
efficient use of human and financial resources.

Considering the significant progress made in developing the Agency’s functioning, and in particular:

(cid:116)(cid:1) the upgrading of the planning, monitoring and reporting processes,

(cid:116)(cid:1) the extension of the Agency’s risk assessment process to cover the identification and management 

of conflict of interest and fraud risks, and 

(cid:116)(cid:1) the efficiency of the Agency’s control procedures, 

the control environment in place is working and provides reasonable assurance that risks are consid-
ered and adequately controlled.

The  newly  introduced  specific  ex-ante  controls  provide  reasonable  assurance  on  the  legality  and 
regularity of the Agency’s activities. They encompass the entire system of controls and checks per-
formed  on  both  the  operational  and  financial  activities. The  Agency’s  financial  management  was 
strengthened following the guidelines established for major processes and the clear definition of the 
roles and responsibilities in the financial workflow. 

In addition, stricter management supervision was performed through regular reviews of the Work 
Programme  implementation,  including  the  risk  assessment  and  the  definition  of  preventative 
measures. 

The  management  met  on  a  monthly  basis  and  discussed  statutory  deadlines  and  requirements, 
internal processes and operational milestones, including the procurement action plan, HR statistics, 
budget monitoring, implementation and forecasts. The outcomes of these meetings were recorded 
and actions followed-up. 

The ex-ante controls were complemented by regular performance of ex-post checks and controls on 
financial and operational activities. The results from 2014 ex-post controls on financial transactions 
resulted in very few remarks of minor importance, and no remarks nor recommendations following 
the ex-post control on the sample taken towards the year end. This was a good indication of the 
improvement in the 2014 performance compared to previous years.

The  above  controls  and  supervisory  checks  provided  no  evidence  of  significant  and/or  repetitive 
errors in the reporting by the Agency’s departments, reporting on budget execution and on human 
resources, as well on the key performance indicators. Monitoring reviews showed no instances of 
inadequate or ineffective controls that exposed the Agency to key risks. 

Based on the results achieved in 2014 and the assurance received by the external and internal audits, 
and considering major developments in the Agency’s tasks and responsibilities, affecting both its 
operational structure and resources, it can be concluded that the control system provided reason-
able assurance to the authorising officer and the authorising officers by delegation in their areas of 
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2.6 Budget implementation tasks entrusted 
to other services and entities

No budget implementation tasks were entrusted to other services and entities.

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2.7 Other administrative tasks 

2.7.1 The Agency’s premises

The Agency is currently renting office premises, located at Trg republike 3, 1000 Ljubljana, Slovenia, 
for a period of five (5) years, starting on 1 February 2014 until 31 January 2019, with a possibility for 
an extension for an additional period of up to five (5) years. The building is located in the city centre 
next to the National Assembly and the Slovenian cultural and congress centre Cankarjev dom. The 
Ministry of Foreign Affairs, Ministry of Finance, the Presidential Palace and the Prime Minister’s Office 
are all in the immediate vicinity.

The premises are owned by CEEREF NALOŽBE, real-estate and construction projects, d.o.o., Dunajska 
cesta 9, 1000 Ljubljana, Slovenia.

The total surface area of the building (above and below ground level) is 16 990 m2. It has 17 floors 
above ground level and 2 floors below ground level. The building is also occupied by other tenants 
(the  Agency  is  not  a  sole  occupant)  which  include  a  number  of  embassies,  private  companies,  a 
notary, and a branch of a bank. The building also provides conference rooms, a canteen and a coffee 
shop. There are no shops in the building.

Under the current rental contract the Agency is renting 2 871.22 m2, which includes a net area for 
offices measuring 2 670.50 m2 and space in the basement measuring 200.72 m2. The percentage of 
capacity usage is 100%.

The  rental  contract  includes  all  running  costs  such  as  electricity,  security,  cleaning,  sewerage  and 
refuse collection, charges for water, heating and cooling, maintenance, maintenance of the environ-
ment, etc.

In 2014, the Agency also maintained its liaison office in Brussels with two staff members: one tempo-
rary agent (TA) and one ‘cost-free’ seconded national expert (SNE) assigned to it. The office is hosted 
in the premises made available, free of charge, by the CEER, as an in-kind contribution to the running 
of the Agency. CEER also provided secretarial support to the Agency’s activities in Brussels. The IT 
and information resources are shared with the liaison office, which makes it an integral part of the 
Agency’s structure.

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Activity

Premises and facility management

Work programme 
objective

In 2012, the Agency launched a procurement procedure 
for the selection of permanent premises. 

The procedure resulted in the selection of the same premises as those 
occupied by the Agency at the time. It was envisaged that additional 
office space would be rented to accommodate any further needs for 
office space and meeting rooms in view of the Agency’s growing staff.

The removals planned to occupy the additional 
office space were finalised in early 2014. 

The Agency already had most of the furniture and appliances 
for its daily activities. Due to additional office space and 
meeting room capacity, and due to the additional activities 
planned under REMIT, a procurement procedure for 
additional furniture was planned in the first half of 2014.

Targets and 
deadlines 
(indicative)

Successfully move to its permanent premises in Ljubljana by 1 
February 2014 (subject to the timely finalisation of the procurement 
procedure as well as fitting out the premises in time).

Finalise the procurement procedure for the delivery of additional 
equipment required for the new premises by 1 June 2014, or, 
where equipment is required by additional staff being recruited 
by the Agency, by the time such staff joins the Agency.

Finalise the procurement procedure(s) for additional 
facility management-related services that are 
needed in the new premises by 1 April 2014.

Performance 
indicators

New premises occupied by 1 February 2014.

Delivery of additional equipment required for the new premises, 
and all related services needed for the normal functioning of the 
new premises in place by 1 August 2014, or where equipment 
is required by additional staff being recruited by the Agency 
later in the year, by the time such staff joins the Agency.

Risk assessment

Unforeseen delays in finalising the procurement 
procedure for the Agency’s permanent premises, which 
might result in delays in the Agency’s move.

Unforeseen delays in fitting-out the Agency’s permanent 
premises, which might result in delays to the Agency’s move. 
Delays in the related tenders and arrangements for additional 
furniture, appliances, IT infrastructure and related services.

The procurement procedure was successfully completed on time. 
As the same lessor won the tender, the Agency staff remained in 
the same premises. The removals to occupy extra space took place 
in February 2014. The Agency joined the framework contract of the 
Commission/OIB for delivery of any additional equipment/furniture.

Achievement 
of the target

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2.7.2 ICT infrastructure

Maintenance support and further development of the IT infrastructure, as well as ensuring that the IT 
systems worked effectively were the priorities for 2014. In view of the occupation of additional office 
space in 2014, new users had to be accommodated and the Agency’s business continuity had to be 
ensured in performing its tasks and duties without significant interruption to ICT services.

Additional IT services were also set up in line with the Commission’s standards. In 2014, the Agency 
followed this up by implementing the recommendations of the IAS resulting from the IAS 2013 audit. 

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Activity

ICT development

Work programme 
objective

In 2014, the Agency had to ensure the continuity of ICT services 
and the security of information in view of occupying the 
additional office space acquired by the Agency in 2013.

Further developments and acquisition of applications and services took 
place to cover the Agency’s departments’ needs and the maintenance 
or renewal of the existing ones: as the Agency’s departments 
grew, their needs for ICT services and products also increased. 

In 2014, the Agency entered its fourth year of operation. As the 
retention period for ICT equipment was set to four years, the ICT 
software and hardware infrastructure had to be upgraded or renewed.

Targets and 
deadlines 
(indicative)

Perform the transition of the ICT infrastructure from the old to the new 
premises whilst ensuring an acceptable level of business continuity 
and within the time frame indicated by the Agency’s needs. 

Follow and implement the IAS 2013 recommendations.

Ensure the further development and acquisition of applications 
and services to cover the Agency’s departments’ needs and 
the maintenance or renewal of those already in place.

Where needed, upgrade or renew the ICT equipment, 
software and hardware infrastructure of the Agency.

Performance 
indicators

Successful transition of the ICT infrastructure from the old to the new 
premises, within the time frame indicated by the Agency’s needs.

Potential risks

Implement the most important IAS 2013 recommendations 
according to the agreed Action Plan.

Further development and acquisition of new applications, 
maintenance or renewal of the existing ones to cover 
the Agency’s departments’ needs in 2014.

Accurate identification of ICT equipment to be upgraded/
renewed and successful integration of the new equipment.

Short time-frame between acquiring the new premises and 
the removal date. Potential problems with the new building’s 
existing infrastructure to be used for ICT purposes.

IT Team internal resources availability and adequate staffing.

Having in place the necessary contracts to enable ordering 
the software/hardware and IT services needed.

Budget availability, possible problems with integration of new 
ICT equipment, hardware/software with existing ones.

Achievement 
of the target

The Agency effectively ensured the extension of the ICT network 
and IT services to the newly occupied office space, and ensured the 
smooth removal of equipment for staff occupying the new offices.

The recommendations from the 2013 IAS visit were 
addressed in a timely manner and closed by the IAS.

The development and acquisition of applications and services 
to cover the Agency’s departments’ needs and the maintenance 
or renewal of those already in place were performed in 
line with the ICT Action Plan and needs assessment.

ICT equipment, software and hardware infrastructure of 
the Agency were renewed or upgraded, as necessary.

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2.8 Assessment of audit results 
during the reporting year

2.8.1 Internal Audit Service (IAS)

In 2014, the IAS carried out an audit on the topic ‘Development of Framework Guidelines and Opin-
ion on Network Codes’, as provided for in the IAS Strategic Audit Plan4 for the Agency for 2013-2015. 

The objective of this audit was to assess whether the management and control systems set up by the 
Agency in cooperation with the NRAs ensured that the Framework Guidelines and the Opinions on 
NCs were prepared in an efficient and effective manner.

The scope of the audit covered the following four sub-processes5 of the Development of Framework 
Guidelines and Opinion on NCs:

Sub-process 1: Scoping of the Framework Guidelines;
Sub-process 2: Preparation of the Framework Guidelines;
Sub-process 3: Preparation of the Network Codes by the ENTSOs and the interactions with the Agency;
Sub-process 4:  The Agency’s review of the Network Codes.

In particular, the audit assessed how the Agency’s management ensures:
(cid:116)(cid:1) the Agency’s compliance with the legal deadlines for the FG preparation and for the opinion on NC;
(cid:116)(cid:1) the efficiency of the internal working practices;
(cid:116)(cid:1) the effectiveness of the internal working practices;
(cid:116)(cid:1) that stakeholder consultations for both (i) the development of the FG and (ii) the opinion on NC 
are  properly  executed  (i.e.  well  announced  and  organised,  stakeholders’  feedback  adequately 
taken on board, etc.).

Audit Opinion

Based on the results of the audit, the IAS concluded that overall the process of developing FG and 
Opinions on NC was managed effectively. The IAS based this conclusion on the fact that the legal 
deadlines were met, by making note of the proactive approach to the scoping of FG, as well as by 
continuously improving the process of FG and Opinions on NC development.

The  IAS  also  identified  areas  for  improvement  and  provided  six  recommendations  (five  rated  as 
Important and one rated as Very Important) on ways to improve the audited processes. The IAS find-
ings, recommendations and the implementation of the Agency’s follow-up action plan are described 
in Section 2.9.1. 

2.8.2 European Court of Auditors (ECA)

In March 2014, the ECA carried out an audit on the 2013 annual accounts. The audit mission com-
prised analytical audit procedures, direct testing of transactions and an assessment of key controls 
of the Agency’s supervisory and control systems. 

As a result of the audit, the ECA considered that the Agency’s annual accounts presented fairly, in 
all material respects, taking into consideration its financial position on 31 December 2013 and the 
results of its operations and its cash flows for 2013, were in accordance with the provisions of its 
Financial Regulation and the accounting rules adopted by the Commission’s accounting officer.

Opinion on the legality and regularity of the transactions 

In the Court’s opinion, the transactions underlying the annual accounts for the year that ended on 31 
December 2013 were legal and regular in all material respects.

4 

IAS Strategic Audit Plan 2013-2015 for the Agency, 2 May 2012.

5  With a focus on sub-processes 2 and 4.

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The audit of the 2013 annual accounts resulted in three comments issued by the ECA in its Report6. 
The comments, which are provided under Section 2.9.2., do not call the Court’s opinion into question. 

A second audit visit was performed by the ECA from 21-23 October 2014 regarding an audit in the 
field of ‘Security of Energy Supply’’. The aim of the audit was to assess the effectiveness of EU meas-
ures (policy framework and funding) in establishing the IEM and financing energy infrastructure (gas 
and electricity interconnectors) to improve security of energy supply (SES). It also aimed at verifying 
whether the EU institutions and the Member States ensured proper and continuous functioning of 
the IEM, and whether the setup and implementation of infrastructure programmes co financed by 
the EU supported the functioning of the IEM and thereby improved the SES.

A  Fact  Clearing  Letter7  was  communicated  by  the  ECA  to  the  Agency,  summarising  the  facts  ob-
tained during the audit visit. The letter described the main operational activities of the Agency, the 
key stakeholders, the main deliverables, etc. It presented the challenges and considerations of the 
Agency in view of the implementation of REMIT and the infrastructure and market monitoring tasks. 
No findings or recommendations were issued in the letter.

The  ECA  Final  Report  on  the  results  from  the  performance  audit  will  be  issued  later  in  2015  and 
reported on in next year’s annual activity report.

Audit of the 2014 annual accounts

The audit of the 2014 annual accounts took place in February 2015. The ECA audited the legality 
and regularity of the transactions underlying the accounts, while the reliability of the accounts was 
audited  in  March  2015  by  an  external  audit  firm  contracted  by  the  Agency  and  whose  work  was 
reviewed by the ECA. No observations or recommendations were issued by the external auditors. 
Three findings and related recommendations were issued by the ECA highlighting the fact that the 
high level of appropriation carried over into the following financial year related mainly to the RE-
MIT project and to delays in approving the Implementing Regulation for this project, as well as the 
absence of a European School in Slovenia four years after the Agency signed the Seat Agreement 
envisaging the setting up of a European school.

As a result, the ECA issued its preliminary observations with a view to reporting on the annual ac-
counts  of  the  Agency8.  In  the  Court’s  opinion,  the  Agency’s  annual  accounts  present  fairly,  in  all 
material respects, its financial position as at 31 December 2014 and the results of its operations and 
its cash flows for 2014. Furthermore, in the Court’s opinion, the transactions underlying the annual 
accounts for the year ended 31 December 2014 were legal and regular in all material respects.

All recommendations from previous years were marked as completed in the preliminary observations.

6 

7 

http://www.eca.europa.eu/Lists/ECADocuments/ACER_2013/ACER_2013_EN.pdf, page 5.

Reference: PF 6854, 17 December 2014

8  Adopted by chamber iv at its meeting of 28 April 2015. 

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2.9 Follow up of recommendations 
and action plans for audits 

2.9.1 Recommendations issued by the IAS

The 2014 IAS audit resulted in four observations and six recommendations (one rated as Very Im-
portant and five rated as Important). The observations and recommendations were formulated as 
follows:

A.

Agency’s role 
and internal 
organisation of the 
FG/NC process

Rec. 1 Clarify roles and responsibilities and improve project 
management in the FG/NC process (Very Important)

Rec.2 Reconsider the formal role of the Agency in 
the WGs and project groups (Important)

Rec. 3 Increase the number of NRAs involved and clarify roles and 
expectations of the participants in the FG/NC process (Important)

Rec. 4 Optimise the hierarchical set-up in the 
electricity domain (Important)

Rec. 5 Incorporate the Agency’s view early on in the 
FG/NC preparation process (Important)

Rec. 6 Ensure  regular exchange of FG/NC process experiences and 
practices between the Gas and Electricity departments (Important)

B.

Hierarchical 
organisation of the 
electricity domain

C.

Changes of texts 
agreed at WG level

D.

Exchange of 
experience 
between the 
Agency’s 
departments

The Agency acknowledged the observations and recommendations and devised an action plan for 
their implementation. It was endorsed by the IAS with a view to adequately addressing and mitigat-
ing the risks. The action plan is currently being implemented as planned (with two recommenda-
tions closed and the remaining actions to be implemented and reported on by the end of 2016), 
with no delays.

Follow-up of earlier recommendations (2013 audit)

In 2014, the Agency completed the implementation of 10 out of the 11 recommendations issued 
after the IAS 2013 audit visit. At present, all 10 recommendations have been closed and the following 
recommendation is marked as partially implemented and remains open, to be completed in 2015:

- Recommendation 11 (Important) – Reinforce operational and budget implementation monitoring. 
Remaining action (implemented and pending approval by the IAS): Alignment of the approaches of 
KPI and PI monitoring and reporting in individual departments to improve the reporting package for 
monitoring the operational activities at department level. 

No critical recommendations were received in 2013 or 2014. 

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2.9.2 Recommendations issued by the ECA

The ECA issued a positive opinion on the reliability of the 2013 accounts and on the legality and 
regularity of the transactions underlying the accounts. Its report contained three specific comments: 
two on budgetary management (the amount of carried-over appropriations related to the imple-
mentation of REMIT - a shortcoming which was rectified in subsequent commitment appropriations) 
and one on the amounts of cash at year end (related to the late budget amendment in 2013). The 
Agency  took  note  of  these  findings  and  related  recommendations,  and  undertook  appropriate 
measures to address them. 

Follow-up of earlier recommendations

All recommendations received in 2013 with regards to the 2012 annual accounts were implemented 
by the Agency. Three recommendations were closed, two are still open. The documentation to close 
the latter was sent to the ECA and is expected to appear in the next ECA report. 

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2.10 Follow up of observations from 
the discharge authority 

The  ECA  made  three  comments  with  regards  to  the  Agency’s  2013  annual  accounts,  all  of  which 
were  followed-up  and  implemented  by  the  Agency.  In  its  Report  on  the  discharge  regarding  the 
implementation of the budget for the financial year 20139, the discharge authority made no further 
recommendations to the Agency. 

The following actions were implemented in 2014 and reported to the discharge authority with re-
gard to the 2012 discharge:

Budgetary and financial management

The Agency implemented a series of measures to improve the budget planning processes by de-
veloping and implementing a set of guidelines for the actors involved in budget planning, as well 
as by conducting regular exercises of appropriation consumption forecasts and reviews, including 
monthly  monitoring  and  reporting  on  budget  implementation. The  monitoring  of  appropriation 
consumption forecasts combined with the planned procurement resulted in a more efficient treas-
ury management giving the Agency a better overview of its resources and consumption patterns.

Recruitment procedures

Since  October  2013,  following  the  ECA’s  recommendation,  the  Agency  has  been  implementing  a 
revised policy10 on the recruitment procedures and the work of the Selection Panels (including spe-
cific conditions for interviews and written tests, as well as strict provisions to ensure the anonymity 
of candidates). 

Prevention and management of conflicts of interest

In 2014, the Agency reviewed its policy on the prevention and management of conflicts of interest 
based on the Commission’s Guidelines on the Prevention and Management of Conflicts of Interest 
in decentralised Agencies of December 2013. As a result of that review, the Agency drafted a new 
policy which was subject to the Agency’s internal consultation process in the course of 2014 and was 
adopted by the AB on 30 January 201511.

In line with the Commission’s guidelines, the policy was extended to members of the BoR. In line 
with the EP’s observations, the CVs and declarations of interests of the BoR members, the Director, 
senior management, as well as the CVs of the AB and BoA members were made publicly available on 
the Agency’s website. The publication of CVs and declarations of interest was addressed under the 
framework of the Agency’s new Policy for the Prevention and Management of Conflicts of Interest.

9 

2014/2123(DEC);  http://www.europarl.europa.eu/sides/getDoc.do?pubRef=-//EP//TEXT+TA+P8-TA-2015-0131+0+DOC+XML+V0//
EN&language=EN

10  Director Decision 2014-06 of 4 April 2014 ‘Guidelines on recruitment procedures and work of the Selection Committees for the Selection of Tem-

porary Staff and Contract Staff’.

11  Decision AB 02/2015 of 30 January 2015.

PART 2b EXTERNAL EVALUATIONS 86

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Article 34(1) of Regulation (EC) No 713/2009 establishing the Agency, stipulates that the Commission 
will carry out an evaluation on the activities of the Agency. The evaluation covers the results achieved 
by the Agency and its working methods, in relation to its objective, mandate and tasks and its annual 
work programmes. It is based on extensive consultation. The Commission submits the evaluation 
to  the  Agency’s  BoR. The  BoR  issues  recommendations  regarding  changes  to  this  Regulation,  the 
Agency and its working methods to the Commission, which may forward those recommendations, 
together with its own opinion as well as any appropriate proposal, to the European Parliament and 
the Council. 

The Commission issued its first evaluation of the Agency’s activities on 22 January 2014 after it carried 
out a public consultation from 18 June 2013 to 18 September 2013 to which it received 16 responses. 
As the Agency formally assumed its role and responsibilities on 3 March 2011, the Commission’s as-
sessment mainly focused on the period from March 2011 to November 2013. The Recommendations 
of the BoR were adopted and released on 19 February 2014. 

A key element of the Commission’s Evaluation Report and of the BoR Recommendations was the 
recognition  of  the  Agency  becoming  a  credible  and  respected  institution  and  of  the  efficient, 
effective  and  timely  conduct  of  its  tasks.  The  Commission  encouraged  the  Agency  to  further 
strengthen its regulatory control over the ENTSOs, and to play an active role as an arbiter when 
NRAs  disagree  or  adopt  incompatible  approaches  on  cross-border  issues  which  impede  the 
smooth functioning of the IEM. 

The Commission welcomed the positive contribution made by the NRAs whilst encouraging some 
of them to take a more active role in the valuable work undertaken by the Agency’s Working Groups. 
Also, as they gain experience, the Agency’s staff could play a more prominent role in its Working 
Groups. As regards the Agency’s communication and transparency, the Commission noted the posi-
tive results from the public consultations; however, in terms of potential improvements, it recom-
mended that the Agency’s website needed to become more informative and user-friendly. The BoR 
Recommendations highlighted that the Agency’s role was essential in further strengthening coop-
eration and coordination across national borders, including through its working arrangements, in 
introducing effective regulatory oversight at EU level, and in supporting the emergence of a pan-EU 
perspective and the continuation of a cooperative European culture between the NRAs themselves 
to develop the IEM.

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3.1 Risk management

Overall management of risks

Besides the standard risks inherent to the Agency’s operations and those also addressed through the 
Internal Control Standards, the Agency’s reporting framework ensured that management was aware 
of and closely followed the achievement of the objectives set for 2014. At the regular coordination 
and management meetings, the results achieved and deadlines met in relation to the objectives and 
the related tasks and deliverables were monitored through the Agency’s traffic lights system.

In  line  with  one  of  the  recommendations  received  from  the  Internal  Audit  Service,  the  Agency 
upgraded  its  monitoring  tool  to  include  follow-up  actions  in  cases  of  identified  delays  or  under-
performance. These actions were regularly reviewed in dedicated bilateral discussions between the 
heads of departments and the Director, and during management meetings held on a quarterly basis. 

At the same time the Agency reviewed its system of Key Performance Indicators (KPIs), by which it 
introduced a distinction between performance indicators and KPIs intended to give management a 
clearer indication of whether the Agency’s overall objectives were being met. The new system will 
be applied in 2015 within the new structure of the Agency’s Work Programme, which was prepared 
in line with the Single Programming Document for Agencies, which should become mandatory in 
the coming years.

The  Agency’s  2014  Work  Programme  outlined  the  activities  and  deliverables  that  contributed 
to the set objectives. A comprehensive set of processes was used to monitor and report on the 
Work Programme and human and  financial resources. Both management and staff in key func-
tions  were  involved  in  the  planning,  risk  assessment,  monitoring  and  reporting  to  ensure  the 
alignment of activities and a common understanding of the Agency’s objectives. The absorption 
of the Agency’s budget was monitored through weekly reports providing an overview of both 
commitments and payments.

The activities and tasks provided for in the Work Programme 2014 were planned on the basis of the 
draft budget approved by the AB in early 2013. However, a considerable share of human resources 
foreseen in the Work Programme were not made available to the Agency in the framework of the 
budgetary  procedure.  In  early  2014  the  Agency  therefore  reviewed  its  Work  Programme,  with  a 
number of activities being deprioritised, therefore aligning the planned activities with the available 
human resources.  

Risk Register – critical risks in 2014

The Agency’s annual risk assessment exercise for 2014 covered its operational, legal and administra-
tive areas of activity. The aim of the Risk Register, compiled as a result of the risk assessment, was to 
identify possible critical risks, assess their likelihood and impact on the achievement of the Agency’s 
objectives,  and  determine  the  Agency’s  response  to  eliminate  or  mitigate  the  potential  negative 
effects. 

As a result of the exercise, management identified five main risks considered to be both likely and 
with a potential significant impact on the Agency’s activities. These risks related to:  

1. The implementation of REMIT

In  2014,  the  Agency  continued  its  activities  to  fully  implement  REMIT.  These  depended  on  the 
progress made in 2013 with respect to the market participants’ registration process and the devel-
opment of the data collection and monitoring systems. The Agency estimated that in 2013 these 
activities would require an investment in IT infrastructure in the order of EUR 3 million. However, the 
budget for 2013 envisaged financial resources for the Agency to support investment in IT systems in 
the order of EUR 110 000. At the time in which the 2014 Work Programme was planned the additional 
financial resources were not yet available to the Agency, putting at risk the fulfilment of the activities 
foreseen in the Work Programme. 

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On 29 October 2013, the Agency received the additional funds through a transfer from DG Energy 
and was able, albeit with a modified schedule of activities, to implement its 2014 Work Programme. 
As provided for in the Risk Register, the limited human resources foreseen in the Agency’s approved 
staffing  plan  remained  a  problem,  which  was  partly  overcome  due  to  the  adoption  of  the  REMIT 
Implementing  Acts  being  delayed  to  the  end  of  the  year  and  through  the  revision  of  the  Work 
Programme. 

2.The TEN-E Regulation

In 2014, the Agency was called upon to perform activities assigned to it by the TEN-E Regulation, 
which entered into force in mid-2013. The Agency had assessed that the additional activities envis-
aged for the Agency, mainly in the area of the selection of PCIs, would require 12-14 additional ex-
pert staff members, but only five of them were authorised. With the revision of the Work Programme 
a partial reprioritisation of activities took place, mitigating the effects of the lack of additional human 
resources.

3. Monitoring the internal markets in electricity and natural gas

The  main  risks  stemmed  from  the  unavailability  of  data  (for  network  access  monitoring)  and  the 
potential unreliability of national data on retail markets from different sources, as well as the consist-
ency of data sources. 

4. Framework Guidelines, Opinions on Network Codes, Recommendations, Decisions

The  process  to  prepare  the  Framework  Guidelines  and  Reasoned  Opinions  on  Network  Codes  is 
subject to the risk linked to the availability and engagement of experts from the NRAs. Given the 
limited resources of the Agency, the process heavily involves experts from the NRAs contributing to 
the Agency’s Working Groups on an entirely voluntary basis. 

5. Relocation to final premises 

Following the unsuccessful tender to select the Agency’s permanent premises in Ljubljana in 2012 
and  the  selection  of  the  Agency’s  final  premises  in  2013,  the  Agency  completed  its  relocation  in 
early 2014. Thanks to the mitigating measures taken, the relocation did not negatively impact the 
Agency’s work process and attainment of objectives.

The above risks were successfully managed in the course of the year. The risk related to implementing 
REMIT proved to be, as expected, the major threat to the implementation of the Agency’s objectives. 

Other risk assessment exercises

Striving to address recommendations from the European Court of Auditors and the Internal Audit 
Service, the Agency ran two additional risk assessment exercises: prior to the development of the 
policy on the prevention and management of conflicts of interest and the drafting of the Agency’s 
Anti-Fraud  Strategy  2015-2017.  From  the  risk  assessment  on  conflicts  of  interest,  it  emerged,  in 
particular, that a major upgrading of the Agency’s policy was necessary and, as a consequence, a 
new Policy was drafted to address the risks of conflicts of interest affecting the Agency’s work and 
reputation. 

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3.2 Compliance and effectiveness of 
Internal Control Standards 
Since its official establishment in 2011, and in pace with the higher volume of tasks assigned to it, 
the Agency progressively developed and implemented a series of internal measures to ensure that 
its activities are controlled effectively and that they provide reasonable assurance with regards to the 
achievement of objectives. 

This is ensured, in particular, by the established internal control system12 that aims to provide as-
surance on the effectiveness and efficiency of the operational activities, as well as to meet all legal 
and regulatory requirements to ensure that financial and management reporting is reliable and that 
assets and information are safeguarded.

To that end, a set of 16 Internal Control Standards (ICS) and minimum requirements, defining the 
Agency’s internal control environment, were implemented. These control standards were structured 
around the following six major ‘building blocks’:

1.  Mission and Values;
2.  Human Resources;
3.  Planning and Risk Management Process;
4.  Operations and Control Activities;
5.  Information and Financial Reporting;
6.  Evaluation and Audit.

Whereas compliance with the minimum requirements of the ICS in place was achieved, the Agency’s 
Internal Control Framework was constantly monitored to ensure that the controls in place not only 
worked effectively, but that they drove performance towards continuous improvement.

To  ensure  that  in  2014  the  Agency  continued  to  further  strengthen  the  internal  controls,  specific 
ICS in key areas were prioritised. Furthermore, the Agency continued to take into account the rec-
ommendations from internal and external audits and assessments to improve the Agency’s control 
environment. 

An overview of the key specific actions implemented, which add to the continuous development of 
the Agency’s ICS Framework, is provided below.

12  Established by the AB with Decision AB No 08/2011 on the Adoption of Internal Control Standards and revised by AB Decision No 10/2012.

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ICS 2: Ethical and Organisational Values

The Agency made significant progress towards ensuring full compliance with the revised require-
ments of the EC ICS.

In  the  course  of  2014,  it  developed  and  adopted  a  number  of  internal  policies  and  instructions, 
formulating  a  comprehensive  step  towards  strengthening  the  Agency’s  integrity  package.  These 
include:

1. Policy on the Prevention and Management of Conflicts of Interest

As described under Section 2.10 above, to  facilitate the prevention  and management  of  conflicts 
of interest, in the course of 2014 the Agency developed a comprehensive, fully-fledged Policy for 
the  prevention  and  management  of  conflicts  of  interest,  which  substituted  the  Agency’s  existing 
guidelines. The policy followed the Commission’s Guidelines on the Prevention and Management of 
Conflicts of Interest in decentralised Agencies of December 2013, underwent an extensive internal 
consultation process and was adopted by the AB on 30 January 2015.

2. Fraud and irregularities

To ensure a proactive approach towards fraud risk management, the Agency introduced a number of 
tools and control systems to reduce potential fraud risks and to create an Agency environment that 
discourages any fraudulent behaviour. A comprehensive Anti-fraud Strategy, valid for the period of 
2015-2017, together with an action plan for its implementation, was developed and adopted by the 
AB in December 2014. It supported the Agency’s commitment to take strong measures to address 
and mitigate any fraud, corruption and other illegal activity affecting the financial interests of the 
European Union. 

3. Whistleblowing

To detect and investigate any serious concerns about fraud, corruption or other serious wrongdoing, 
and to take appropriate actions to protect its assets, integrity and reputation, in December 2014 the 
AB adopted internal rules on whistleblowing.

The rules aim to encourage staff to report concerns, while providing assurance for their own position, 
which will facilitate the detection of any potential or actual instances of fraud, corruption and serious 
irregularities. The  guidelines  further  strengthened  the  Agency’s  overall  policy  towards  ethics  and 
professional conduct. 

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ICS 3: Staff Allocation and Mobility

1. Policy on the recruitment procedures and the work of the Selection Committees

Following the recommendations of the ECA, in 2014 the Agency adopted its revised policy on re-
cruitment procedures and the work of the Selection Panels. The policy, implemented since October 
2013, ensured a step forward in the Agency’s commitment to transparency and equal treatment in 
staff recruitment.

ICS 4: Staff Evaluation and Development

1. Personal initiative training

To further facilitate training and to better address personal training needs, the Agency took a deci-
sion in 2014 to grant, under certain conditions, additional financial support for individual staff mem-
bers and SNEs to participate in training activities offered by external providers.

The decision was formalised by Director’s Decision 04/2015 on the Policy and procedure for personal 
initiative training, which extended the scope of possible routes for personal development and train-
ing and became part of the Learning and Development Framework at the Agency.

In 2014, the Agency also updated and adopted the 2014 Learning and Development Framework, 
which provides direction for the professional and personal development needs of all staff members 
and contributes significantly to an efficient HR policy.

2. PM2 methodology - training offered to staff

In the course of 2014, the Agency provided comprehensive training on PM²@EC - the Commission’s 
official Project Management Methodology for all Project Managers and IT staff in the Agency. The 
course covered all aspects of the PM² methodology, the governance framework and project roles, 
best practices, project planning, project logs and project reports. The training accommodated the 
Agency’s  project  management  methodologies,  using  a  single  methodology,  to  ensure  coherent 
project management and to facilitate the effective contribution of the project team.

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ICS 10: Business Continuity

1. Disaster Recovery Site (DSR) project

A major step towards ensuring business continuity of the Agency’s activities, and in particular the 
ability  of  the  Agency  to  continue  its  critical  operations  and  to  use  the  standard  ICT  services,  was 
achieved by completing the Disaster Recovery Site project in 2014. The project was accomplished to 
mirror the ICT infrastructure hosted in the Agency’s data centre in Ljubljana to a remote data centre 
outside Ljubljana. If a natural disaster occurred in Ljubljana’s data centre (i.e. fire, flood, earthquake, 
etc.) or a serious problem (i.e. power failure, or any other extensive failure that could cause dam-
ages to critical ICT systems), the Agency would be able to resume its normal operation and use the 
standard ICT services and stored data from the remote site located outside Ljubljana. 

ICS 12: Information and Communication

1. The Agency’s Communication Strategy 2014-2015

The first communication strategy was adopted in 2014 to assist the Agency in fulfilling its overall 
mission and objectives through effective communication. It outlined key communication objectives, 
target audiences the Agency aimed to reach and the key messages it strived to communicate within 
the period 2014-2015.

The strategy supports the Agency’s objectives to increase the transparency of its activities, enhance 
visibility  vis-à-vis  target  audiences  and  to  ensure  two-way  communication  through  regular  feed-
back, while presenting the Agency as an independent, credible, transparent, service-oriented and 
efficient expert EU body in energy regulation. 

ICS 15: Assessment of ICS

1. Guidance on the assessment of the effectiveness of the ICS

To further support and strengthen the objective assessment of the effectiveness of the ICS, intro-
duced by the Agency, and to identify areas where weaknesses exist and where controls should be 
strengthened, the Agency developed internal guidelines in 2014 to be followed when assessing the 
effectiveness of the ICS. The guidelines establish specific requirements and information sources to be 
used when assessing and verifying the effectiveness of the ICS, as presented in the Agency’s annual 
activity reports. The guidelines, subject to management approval in 2015, will be applied regularly, 
and as a minimum once per year under the framework of the annual activity report, to contribute to 
the assurance, provided by the Authorising officer in the Declaration of Assurance.

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Conclusions

In 2014 the Agency continued to implement a comprehensive system of internal controls and per-
formance and results-oriented management, embedding risk management and ensuring a propor-
tional approach to the compliance and effectiveness of internal procedures and systems. The annual 
review of the ICS and the risk assessment exercise of the Agency generated assurance of the correct 
functioning  of  the  systems  in  place,  verified  results,  identified  potential  concerns  and  supported 
corrective action planning. 

Following a review of the implementation of the ICS, the Agency considers itself compliant with the 
minimum requirements underlying each control standard. Nevertheless, it constantly works towards 
ensuring  that  the  controls  introduced  work  effectively  and  that  they  contribute  to  achieving  the 
objectives. The specific actions implemented and the controls introduced under each of the priori-
tised ICS key areas in 2014, as described above, proved to work efficiently and to contribute to the 
Agency’s commitment to continuous improvement.

In addition to the good results achieved in previous years, no significant or material weaknesses in 
the Agency’s ICS became evident in 2014. The results of the ICS status review provide reasonable 
assurance of a positive assessment on the level of compliance with all ICS and on organisational per-
formance. Taking into consideration the main developments which took place, and in particular the:
(cid:116)(cid:1) introduction of a comprehensive integrity package;
(cid:116)(cid:1) improved processes and procedures regarding staff allocation, mobility, evaluation and 

development;

(cid:116)(cid:1) introduced provisions regarding business continuity and disaster recovery;
(cid:116)(cid:1) adoption of a comprehensive communication strategy;
(cid:116)(cid:1) results of the annual risk management process; and
(cid:116)(cid:1) results of the financial, procurement and human resources management processes,

the ICS can be considered to have provided reasonable assurance on controlling the risks related to 
the Agency’s performance on achieving its objectives and the objectives concerning staff, as well 
safeguarding assets and information.

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4.1 Review of the elements supporting assurance

The  building  blocks  of  assurance,  as  described  in  Part  II  and  Part  III,  underpin  the  reasonable  as-
surance provided by the authorising officer in his Declaration of Assurance of the Annual Activity 
Report. The following main conclusions support the declaration of assurance:

Building block 1: Assessment by Management

As  presented  above,  the  Agency  developed  and  implements  a  comprehensive  set  of  procedures 
and tools to prepare, manage, control and monitor its Work Programme progress and its human and 
financial resources.

Those encompass the whole set of ex-ante and ex-post controls, planning, monitoring and reporting 
tools,  the  control  procedures  performed  by  staff  and  the  assurance  provided  by  the  internal  and 
external audits and the evaluations performed on the Agency’s activities.

Based  on  the  facts  presented  in  the  previous  sections,  and  in  the  light  of  the  opinion  expressed 
by the ECA on the reliability of the accounts and on the legality and regularity of the transactions 
underlying the accounts, a conclusion can be drawn that the Agency has established a working en-
vironment where the risks are appropriately managed and where the internal control system works 
effectively and contributes to the achievement of the objectives.

This conclusion takes into consideration the need for the Agency to maintain a high level of effi-
ciency of its internal control environment, to constantly assess and strengthen the existing controls 
(considering the cost-effectiveness and the estimated added value against the additional costs to 
the Agency) to maintain full compliance with the requirements of the 16 ICS, and to ensure continu-
ous achievement of the objectives in its Work Programmes (Single Programming Documents) in the 
years to come. 

Register of exceptions

Since 2011, the Agency has had a procedure in place for registering exceptions. Its overall objective 
is to establish appropriate arrangements for ensuring that any exceptional circumstances of signifi-
cant instances of overriding controls or deviations from the established regulatory framework are 
adequately explained, registered and reported in accordance with the principle of transparency. An 
exception must be documented, justified and approved at the appropriate level before any action 
is taken.

In 2014 one exception was registered. The exception concerned a reimbursement of mission costs to 
a staff member for the amount of EUR 357.40. The reason for the exception was attributed to techni-
cal reasons (a missing signature in the Agency’s Mission management tool to approve the mission, 
while the staff member received a confirmation message, and a post-signature was input into the 
tool by the AO), and the amount was considered as insignificant. 

No procedural incidents were registered in 2014, which further adds to the provided assurance.

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101

Building block 2: Results from audits and external evaluations during the 
reporting year

Since its establishment, the Agency has not received any critical recommendations from the internal 
and external auditors. The year 2014 was no exception in this respect as no critical recommendations 
were issued. Furthermore, all recommendations from previous years were implemented as planned, 
reported in a timely manner and approved by the relevant authority. 

External evaluation

As presented under Part 2(b) of this Report, the Commission issued its first evaluation of the Agency’s 
activities on 22 January 201413, following a public consultation from 18 June 2013 to 18 September 
2013, to which it received 16 replies. As the Agency assumed its role and responsibilities on 3 March 
2011, the assessment mainly focused on the period from March 2011 to November 2013. The key 
elements of the Evaluation Report (the recognition of the Agency as a credible and respected institu-
tion, and the conclusion that its tasks have been carried out efficiently, effectively and in a timely 
manner) further add to the assurance provided by the authorising officer. The Commission’s Evalu-
ation Report provides a generally positive assessment and perception of the Agency as a credible 
and respected institution playing a prominent role in the EU regulatory arena, and provides valuable 
feedback on areas for improvement. 

Building Block 3: Follow-up of reservations from previous years

The Authorising Officer’s declaration of assurance in the Annual Activity Report 2013 did not contain 
any reservations.

Building Block 4: Assurance received from other AOs in cases of crossed 
sub-delegations

Not applicable.

4.2 Reservations (if applicable)

No reservations are to be made in the current Annual Activity Report.

13  22.1.2014 C (2014) 242 final.

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105

I, the undersigned Director of the Agency for the Cooperation of Energy Regulators,

In my capacity as authorising officer,

Declare that the information contained in this report gives a true and fair view.

State that I have reasonable assurance that the resources assigned to the activities described in this 
report have been used for their intended purpose and in accordance with the principles of sound 
financial management, and that the control procedures put in place give the necessary guarantees 
concerning the legality and regularity of the underlying transactions.

This reasonable assurance is based on my own judgment and on the information at my disposal, 
such as the results of the self-assessment, ex-post controls, the observations of the Internal Audit 
Service and the lessons learnt from the reports of the Court of Auditors for years prior to the year of 
this declaration.

Confirm that I am not aware of anything not reported here which could harm the interests of the 
Agency.

Ljubljana, June 2015

Alberto Pototschnig 

PART 6  ANNEXES108ACER - ANNUAL ACTIVITY REPORT 2014ANNEX I: The Agency’s structureACEROrganisationTask forces in each working group...Divisions in each department...Working groupscomposed of NRA experts and Agency staffACERDepartmentsAdministrative BoardElectricity WGElectricityImplementation Monitoring and Procedures WGAdministrationGas WGGasMarket Integrity and Transparency WGMarket MonitoringBoard of RegulatorsBoard of AppealDirectorA C E R  

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ANNEX II: AGENCY WORKING GROUPS AND TASK FORCES

Implementation, 
Monitoring and 
Procedures (IMP WG)

Chair: Koen Locquet (CREG)

Vice Chair: Silke 
Ebnet (E-Control)

Market Monitoring and 
Reporting (MMR TF)

Chair: Silke Ebnet 
(E-Control)

Procedures (PWS)

Chair:  Maria Isabella 
Detand (CREG)

ACER Board of Regulators (BoR) 

Chair - Lord Mogg (Ofgem)

Vice Chair: Walter Boltz (E-Control)

Market Integrity and 
Transparency (MIT WG)

Co-Chairs: Annegret 
Groebel (BNetzA) & 
Clara Poletti (AEEG)

Vice Chair: Fadhel 
Lakhoua (CRE)

REMIT IT  
Implementation and 
Management (RITMG TF)

Co-Chair: Andrej Krajnc 
(AGEN-RS) & Sabine 
Andres (BNetzA)

Electricity (EWG)

Chair: Fernando 
Hernández (CNMC)

Vice Chair: Mark 
Copley (Ofgem)

Gas (GWG)

Chair: Walter Boltz 
(E-Control)

Vice Chair: Tom 
Maes (CREG)

Infrastructure (INF TF)

Interoperability (IO TF)

Co-Chairs: Christine 
Materazzi-Wagner 
(E-Control) &  Kick 
Bruin (ACM)

Chair: Geert Van 
Hauwermeiren (CREG)

Market Monitoring 
Governance (MMG TF)

Electricity Market and 
Networks (ENM TF)

Capacity Allocation 
Management (CAM TF)

Co-Chair: Geoff 
Boon (E-Control)

Co-Chair: Louise Van 
Rensburg (Ofgem)

Co-Chairs: Alain 
Marien (CREG) & Sven 
Kaiser (E-Control)

Co-Chairs: Benoit Esnault 
(CRE), Markus Backes 
(BNetzA) & Yvonne 
Grösch (BNetzA)

Wholesale Market 
Surveillance (WMS TF)

Joint ACER-CEER 
Flexibility (FTF)

Co-Chair: Axel Biegert 
(BNetzA) & Charlotte 
Ramos -Roig (CRE)
Co-Chair: Axel Biegert 
(BNetzA) & Charlotte 
Ramos -Roig (CRE)

Co-Chairs: Cristian 
Lanfranconi (AEEGSI) & 
Romain Benquey (CRE)

Gas Infrastructure 
(GIF TF)

Co-Chairs: Benoit 
Esnault (CRE) & Carola 
Millgramm (E-Control)

Balancing (BAL TF))

Co-Chairs: Ryan 
McLaughlin (Ofgem) & 
Francesco Cariello (AEEG)

Tariffs (TAR TF)

Co-Chairs: Benoit Esnault 
(CRE), Tom Maes (CREG) & 
Markus Krug (E-Control)

Gas Target Model 
(GTM TF)

Chair: Walter Boltz 
(E-Control)

BoR

Working Group

Task Force

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ANNEX III: Statistics on financial management 

Budgetary Outturn Account

The Budgetary Outturn Account presents, on a cash basis, the actual amounts cashed as income and 
the amount of cash spent to honour the payment of commitments, as well the amounts of unutilised 
and cancelled appropriations.  

31 December2014

31 December 2013

€

€

INCOME

European Commission subsidy

10 880 000.00

11 930 220.00

Other income - assigned revenue

15 960.46

4 198.52

TOTAL INCOME

EXPENSES

10 895 960.46

11 934 418.52

Expenditure related to employees of the agency -Title I

Payments 

5 181 457.00

4 762 240.75

Carry-forwards and carry-overs

182 356.44

102 093.10

Agency’s building and associated expenses - Title II

Payments 

1 439 745.25

1 495 346.94

Carry-forwards and carry-overs

984 338.30

1 871 815.48

Operational expenditure - Title III

Payments 

977 784.41

304 246.59

Carry-forwards and carry-overs

1 569 815.11

3 101 094.17

TOTAL EXPENSES

10 335 496.51

11 636 837.03

Total appropriations not utilised

560 463.95

297 581.49

BUDGETARY OUTTURN BEFORE SPECIAL ITEMS

560 463.95

297 581.49

Cancelled carry-overs

Exchange rate differences

BUDGETARY OUTTURN

148 844.07

118 814.39

(756.01)

(472.10)

708 552.01

415 923.78

Interest generated by the end of the financial 
year to be returned to the Commission

0.00

3 060.03

Total to be returned to the Commission

708 552.01

418 983.81

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111

The following table and chart present the budget implementation by fund source C1 (2014 budget):

31 December 2014 

€

TITLE 1

Budget

Committed

Paid

Carry forward

Carry over

Total expenditure

Appropriations not utilised

Executed

TITLE 2

Budget

Committed

Paid

Carry forward

Carry over

Total expenditure

Appropriations not utilised

Executed

TITLE 3

Budget

Committed

Paid

Carry forward

Carry over

Total expenditure

Appropriations not utilised

Executed

TOTAL

Budget

Committed

Paid

Carry forward

Carry over

Total expenditure

Appropriations not utilised

Executed

5 804 191.00

5 363 813.44

5 181 457.00

182 356.44

0.00

5 363 813.44

440 377.56

92.41%

2 467 255.00

2 424 083.55

1 439 745.25

984 338.30

0.00

2 424 083.55

43 171.45

98.25%

2 608 554.00

2 547 599.52

977 784.41

1 569 815.11

0.00

2 547 599.52

60 954.48

97.66%

10 880 000.00

10 335 496.51

7 598 986.66

2 736 509.85

0.00

10 335 496.51

544 503.49

95.00%

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Implementation of 2014 budget − fund source C1 

10.88

10.34

7.60

2.74

Budget

Commited

Paid

Carry forward

12

10

8

6

4

2

0

s
n
o

i
l
l
i

m

Title 1

During  the  financial  year  2014,  the  budget  allocated  under Title  1  was  implemented  at  a  level  of 
92.41%. The  slightly  low  level  of  implementation  of  commitment  appropriations  is  a  result  of  va-
cancy gaps during the year and the retrospective application of: 

(cid:116)(cid:1) Regulation (EU) No 422/2014 of the European Parliament and of the Council of 16 April 2014 ad-
justing, with effect from 1 July 2011, the remuneration and pensions of officials and other servants 
of the European Union and the correction coefficients, and, 

(cid:116)(cid:1) Regulation (EU) No 423/2014 of the European Parliament and of the Council of 16 April 2014 ad-
justing, with effect from 1 July 2012, the remuneration and pensions of officials and other servants 
of the European Union and the correction coefficients.

The  correction  coefficients  from  these  Regulations  applying  to  Slovenia  resulted  in  budgetary 
savings.

Title 2

The Agency managed to finalise most of the tender procedures launched during the financial year 
2014 and this resulted in a high implementation of the allocated budget under Title 2. 

The renewal of a few large contracts that expired towards the end of the year led to a low implemen-
tation of the payment appropriations, resulting in the need to carry forward these funds into the 
following financial year.

Title 3

The Agency managed to place all the planned orders before the end of the year, which resulted in a 
high implementation of the commitment appropriations. However, the low implementation of the 
payment appropriations was influenced by the nature of the REMIT project that extends over several 
years, whereas the IT infrastructure and user licences needed to be contracted in advance to ensure 
a smooth transition to the go-live stage expected during 2015.

The following table and chart present the implementation of the appropriation stemming from the 
assigned revenue, fund source C4:

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113

31 December 2014

€

11 345.06

11 345.06

0.00%

1 151.23

1 151.23

0.00%

TITLE 1

Budget

Appropriations not utilised

Executed

TITLE 2

Budget

Appropriations not utilised

Executed

s
n
o

i
l
l
i

m

16

14

12

10

8

6

4

2

0

Implementation of 2014 budget − fund source C4 

12.50

0.00

Budget

Commited

0.00

Paid

0.00

Carry forward

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The following table and chart present the implementation of the appropriation carried forward from 
the year 2013 on fund source C8:

31 December 2014 

€

102 093.10

81 861.27

81 861.27

81 861.27

20 231.83

80.18%

488 215.66

392 600.89

392 600.89

392 600.89

95 614.77

80.42%

4 484 693.99

4 451 696.52

4 451 696.52

4 451 696.52

32 997.47

99.26%

5 075 002.75

4 926 158.68

4 926 158.68

4 926 158.68

148 844.07

97.07%

TITLE 1

Budget

Committed

Paid

Total expenditure

Cancelled carry-forwards

Executed

TITLE 2

Budget

Committed

Paid

Total expenditure

Cancelled carry-forwards

Executed

TITLE 3

Budget

Committed

Paid

Total expenditure

Cancelled carry-forwards

Executed

TOTAL

Budget

Committed

Paid

Total expenditure

Cancelled carry-forwards

Executed

s
n
o

i
l
l
i

m

6

4

2

0

Implementation of 2014 budget − fund source C8 

5.08

4.93

4.93

Budget

Commited

Paid

 
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115

Payment time limits for invoices as at 31 December 2014

Total number of payments

Number of late payments

Percentage of late payments

2 125 

93

4.38%

From a total number of 2 125 payments executed during 2014, 93 payments exceeded the time limit 
due to suspensions applied mainly for missing documents from suppliers. The Agency did not make 
any interest payments for the suspended payments.

4%

Payment time limits

Total number of payments
Number of late payments

96%

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The number and values of procurement procedures and contracts implemented in 2014 is presented 
below:

Type of procedure

Negotiated – low value – FwC

Negotiated – low value 
– purchase order

Negotiated – low value –  
single contract

Open (concluded in 2014)

Specific contracts, 
following FWC

Order forms following FWC

TOTAL

Number of 
procedures

Value of contracts 
in EUR

Total amount 
committed in EUR

1

54

5

7

34

146

247

60 000.00

Not applicable

210 521.55

210 521.55

88 745.20

88 745.20

5 310 000.00

Not applicable

2 715 423.51

2 715 423.51

733 030.34

733 030.34

Not applicable

3 747 720.60

146

733 030.34

2 715 423.51

1

Number of procedures

54

5

7

34

Negotiated − low value − FWC
Negotiated − low value − purchase order
Negotiated − low value − single contract
Open (concluded in 2014)
Specific contracts, following FWC
Order forms, following FWC

60 000.00

210 521.55

88 745.20

Number of procedures

Negotiated − low value − FWC
Negotiated − low value − purchase order
Negotiated − low value − single contract
Open (concluded in 2014)
Specific contracts, following FWC
Order forms, following FWC

5 310 000.00

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117

ANNEX IV: Organisational chart

The Agency’s organisational chart as at 31 December 2014 is presented below: 

DIRECTOR

Director’s Office

Strategy 
coordination 
and compliance

Legal Cell

Press and 
Communications

Knowledge 
Management

NRA 
Coordination

ADMINISTRATION 
DEPARTMENT

ELECTRICITY 
DEPARTMENT

GAS DEPARTMENT

MARKET 
MONITORING 
DEPARTMENT

Financial Cell

Procurement Cell

Budget and 
Finance Team

HR Team

IT Team

Electricity 
Policy, Market 
Monitoring Team

Gas Policy, 
Market 
Monitoring Team

Market Data 
Management 
Team

TSO Cooperation 
Electricity Team

TSO Cooperation 
Gas Team

Framework 
Guidelines, 
Network Codes – 
Electricity Team

Framework 
Guidelines, 
Network Codes 
– Gas Team

Market Conduct 
Team

Market 
Surveillance and 
Analytics Team

Regional 
Cooperation 
Electricity Team

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ANNEX V: Establishment plan 

The Agency’s establishment plan for 2 014 is presented below:

Category 
and 
grade

Establishment plan 
in the approved EU 
Budget 201414
TA

officials

Posts filled as at 31 
December 201415 
TA

officials

Establishment plan 
in the approved EU 
Budget 201516 
TA

officials

AD 16

AD 15

AD 14

AD 13

AD 12

AD 11

AD 10

AD 9

AD 8

AD 7

AD 6

AD 5

Total AD

AST 11

AST 10

AST 9

AST 8

AST 7

AST 6

AST 5

AST 4

AST 3

AST 2

AST 1

Total AST

AST/SC 6

AST/SC5

AST/SC4

AST/SC3

AST/SC2

AST/SC1

Total 
AST/SC

TOTAL

1

4

2

6

6

4

16

39

1

14

15

1

1

3

1

4

5

4

7

11

37

1

3

11

15

1

4

2

6

6

7

13

39

1

1

13

15

54

52

54

14  Establishment plan grades (EU Budget 2014).

15  Establishment plan grades (EU Budget 2014), including promotions and modification of the establishment plan in application of Article 32(1) of 

the framework Financial Regulation).

16  Establishment plan grades (EU Budget 2015).

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Geographical balance

On 31 December 2014 the Agency employed 53 staff members and had 13 SNEs of different geo-
graphical origin. Staff and SNEs come from 22 different EU countries (in alphabetical order): Austria, 
Belgium, Bulgaria, Cyprus, Czech Republic, Finland, France, Germany, Greece, Hungary, Ireland, Italy, 
Lithuania,  Poland,  Portugal,  Romania,  Slovakia,  Slovenia,  Spain,  Sweden,  the  Netherlands  and  the 
United Kingdom.

Employees by nationality and gender as of 31 December 2014

Austrian

Belgian

British

Bulgarian

Dutch

French

German

Greek

Hungarian

Italian

Lithuanian

Polish

Romanian

Slovenian

Spanish

Swedish

Portugese

Irish

Cypriot

Czech

Slovak

Finnish

Female (24)

Male (51)

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Gender balance

In accordance with Article 1(d) of the Staff Regulations and Articles 12(1) and 82(1) of the CEOS, the 
Agency applies an equal opportunities policy for its staff, adopting measures and taking actions to 
promote equal opportunities for men and women.

The graph below presents an overview of the Agency’s staff by grade and gender as of 31 December 
2014, including those to whom offer letters were sent and offers accepted and SNEs whose second-
ment was agreed with the seconding institution.

Employees by grade and gender as of 31 December 2014 (* including two cost free SNEs)

AD (37)

AST (15)

SNE (13)

CA (10)

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ANNEX VI: Results of the 2014 job screening exercise 

Job Type (sub) category

Administrative Support and Coordination

Administrative Support

Coordination

Operational

Top Level Operational Coordination

Programme Management & Implementation

Evaluation & Impact Assessment

General operation

Neutral

Finance/Control

Linguistic

Total

Year N  
(total number)

Year N (%)

18

14

4

60

9

51

8

8

86*

20.93%

16.28%

4.65%

69.77%

10.47%

59.30%

9.30%

9.30%

100%

*Total number of establishment plan posts + seconded national experts, interim staff and trainees 
(as per the Agencies’ Job Screening Methodology guidelines)

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ANNEX VII: Financial accounts

Statement of Financial Performance

for the year ending 31 December 2014

REVENUE

European Commission subsidy

Other operating revenue

TOTAL OPERATING REVENUE

1 January– 
31 December 2014 

1 January–  
31 December 2013 

€

€

Notes

1

10 174 912.15

11 514 296.22

(219 655.35)

222 373.08

9 955 256.80

11 736 669.30

ADMINISTRATIVE AND OPERATIONAL EXPENSES

2

Staff expenses 

Fixed asset related expenses

Other administrative expenses

Operational expenses

4 789 856.17

4 474 523.55

260 414.54

193 198.48

2 166 182.44

1 524 328.50

2 158 420.82

574 308.30

TOTAL ADMINISTRATIVE AND OPERATIONAL EXPENSES

9 374 873.97

6 766 358.83

SURPLUS/(DEFICIT) FROM OPERATING ACTIVITIES

580 382.83

4 970 310.47

FINANCIAL OPERATIONS

Financial operations expenses

3

SURPLUS/(DEFICIT) FROM FINANCIAL ACTIVITIES

ECONOMIC RESULT OF THE YEAR

111.43

(111.43)

52.29

(52.29)

580 271.40

4 970 258.18

 
 
 
 
 
 
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Balance Sheet

ASSET 

as of 31 December 2014

NON-CURRENT ASSETS

Intangible fixed assets

Tangible fixed assets

Plant and equipment

Computer hardware

Furniture and vehicles

Other fixtures and fittings

TOTAL NON-CURRENT ASSETS

CURRENT ASSETS

  Short-term receivables

Current receivables 

Sundry receivables

Prepaid expenses and accrued income

  Cash and cash equivalents

TOTAL CURRENT ASSETS

1 January– 
31 December 2014  
€

1 January– 
31 December 2013  
€

Notes

4

5

6

7

2 920 071.47

1 324 759.39

433 807.13

440 087.51

726.31

1 218.27

200 981.87

300 897.86

64 944.27

167 154.68

56 963.92

81 007.46

3 353 878.60

1 764 846.90

2 156, 03.33

2 042 113.22

70 831.99

43 758.12

798 136.14

475 901.55

23 014.50

299 220.09

3 372 278.26

5 468 548.31

5 528 981.59

6 266 684.45

TOTAL CURRENT AND NON-CURRENT ASSETS

8 882 860.19

8 031 531.35

 
 
 
 
 
 
 
 
 
 
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EQUITY AND LIABILITIES 

as of 31 December 2014

EQUITY

Accumulated surplus/(deficit)

Economic result of the year

TOTAL EQUITY

CURRENT LIABILITIES

Accounts payable

Current payables

Accrued expenses and deferred income

Accounts payable with consolidated entities

1 January– 
31 December 2014  
€

1 January– 
31 December 2013  
€

Notes

7 105 145.03

2 134 886.85

580 271.40

4 970 258.18

7 685 416.43

7 105 145.03

1 197 443.76

926 386.32

348.38

488 543.36

708 552.02

0.00

507 402.51

418 983.81

TOTAL CURRENT LIABILITIES

1 197 443.76

926 386.32

TOTAL EQUITY AND LIABILITIES

8 882 860.19

8 031 531.35

  
 
 
 
 
 
 
 
 
 
 
 
 
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Cash Flow Statement

Surplus/(deficit) from operating activities

580 382.83

4 970 310.47

1 January– 
31 December 2014  
€

1 January– 
31 December 2013 
€

Cash Flows from Operating Activities

Adjustments

Amortisation (intangible fixed assets)

Depreciation (tangible fixed assets)

Depreciation (transferred fixed assets)

Amount written off (tangible fixed assets)

9 311.56

8 932.22

251 704.81

184 266.26

0.00

0.00

748.96

0.00

(Increase)/decrease in short-term receivables

(1 358 567.19)

(739 949.89)

(Increase)/decrease in other liabilities

Increase/(decrease) in current payables

(18 859.15)

348.38

238 152.05

(8 948.77)

Increase/(decrease) in liabilities related to consolidated entities

289 568.21

(1 862 588.74)

Net Cash Flow from Operating Activities

246 110.55

2 790 922.56

Cash Flows from Investing Activities

Purchase of tangible and intangible fixed assets

(1 850 048.07)

(1 537 327.21)

Net Cash Flow from Investing Activities

(1 850 048.07)

(1 537 327.21)

Financing Activities

Financial operations revenues/expenses

Net Cash Flow from Financing Activities 

(111.43)

(111.43)

(52.29)

(52.29)

Net increase/(decrease) in cash and cash equivalents

(2 096 270.05)

1 253 543.06

Cash and cash equivalents at the beginning of the period

5 468 548.31

4 215 005.25

Cash and cash equivalents at the end of the period

3 372 278.26

5 468 548.31

Statement of Changes in Net Assets

as at 31 December 2014

Net Assets

Balance as of 1 January 2014

Economic result of the year

Opening 
balance €

Economic result 
of the year €

Total Net 
Assets €

  7 105 145.03 

0.00

7 105 145.03

0.00

580 271.40

580 271.40

Balance as of 31 December 2014

  7 105 145.03 

580 271.40

7 685 416.43

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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Notes to the Financial Statements

NOTES TO THE FINANCIAL STATEMENTS

1. Revenue

The revenues of the Agency for the financial year 2014 consist of:

(cid:116)(cid:1) the subsidy received from the general budget of the European Union; 
(cid:116)(cid:1) income on fixed assets returned by the insurance for lost items;
(cid:116)(cid:1) reversal of 2013 recognised income as a result of applied salary and country coefficient adjust-

ments; and

(cid:116)(cid:1) foreign exchange realised gains.

31 December 
2014 €

31 December 
2013 €

European Commission subsidy

      10 174 912.15 

  11 514 296.22 

Fixed assets income

Exchange rate gains

                  411.62 

              962.99 

                  274.95 

              125.17 

Other operating revenue

(220 341.92)

       221 284.92 

        9 955 256.80

  11 736 669.30 

2. Expenses

Staff expenses consist of personnel-related expenses such as salaries, allowances and other wel-
fare benefits.

All salary calculations giving the total staff expenses included in the Statement of financial performance 
of the Agency are externalised to the Office for administration and payment of individual entitlements 
(also known as the Paymaster’s Office-PMO) which is a central office of the European Commission.

The PMO’s mission is to manage the financial rights of permanent, temporary and contractual staff 
working at the Commission, to calculate and to pay their salaries and other financial entitlements. 
The PMO provides these services to other EU institutions and agencies as well. The PMO is also re-
sponsible for managing the health insurance fund of the Institutions, together with processing and 
paying the claims for reimbursement from staff members. The PMO also manages the pension fund 
and pays the pensions of retired staff members. The PMO is being audited by the Court of Auditors.

The Agency is only responsible for communicating to the PMO the reliable information enabling the 
staff costs to be calculated. It is also responsible for checking that this information has been correctly 
handled  in  the  monthly  payroll  report  used  for  accounting  payroll  costs.  It  is  not  responsible  for 
calculating the payroll costs performed by the PMO.

Fixed assets-related expenses contain the charge of amortisation of intangible assets and the depre-
ciation of tangible assets for the financial year ending 31 December 2014.

Other  administrative  expenses  consist  of  costs  associated  with  the  building,  office  running  costs, 
including the cost of physical inventory that does not qualify as financial assets, as well as the cost 
of interim personnel.

Operational expenses include the cost of operational missions, meetings, workshops, public hear-
ings, REMIT project-related costs and other operational expenditure incurred for the functioning of 
the Agency.

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Administrative and operational expenses

31 December 2014  
€

31 December 2013  
€

Staff expenses 

4 789 856.17 

4 474 523.55 

Fixed asset-related expenses

260 414.54 

193 198.48 

Other administrative expenses

2 166 182.44 

1 524 328.50 

Operational expenses

2 158 420.82 

574 308.30 

9 374 873.97 

6 766 358.83

3. Financial expense

Financial expenses relate to bank charges for operating the Agency bank accounts.

Financial expenses

31 December 2014  
€

31 December 2013  
€

Financial operations expenses

111.43

52.29

4. Intangible fixed assets

Intangible fixed assets recorded in the inventory of the Agency consist of assets without physical 
substance and are represented by acquisitioned software and internally-generated intangible assets 
still under construction at year-end. As intangible asset under construction, the Agency records the 
relevant  costs of the IT platform build to assist  the Agency with the monitoring of  the  wholesale 
energy markets.

Intangible assets at book value

31 December 2014   
€

31 December 2013  
€

Intangible assets

5 800.33 

15 111.89 

Intangible assets under construction

2 914 271.14 

1 309 647.50 

  2 920 071.47 

  1 324 759.39

5. Tangible fixed assets

Assets with a physical substance recorded in the inventory of the Agency consist mainly of furniture, 
computer hardware, telecommunication and audio-visual equipment and other fixtures and fittings.

Tangible fixed assets at book value

31 December 2014  
€

31 December 2013  
€

Plant and equipment

Computer hardware

Furniture and vehicles

Other fixtures and fittings

 726.31 

 1 218.27 

 200 981.87 

 300 897.86 

 64 944.27 

 167 154.68 

 56 963.92 

 81 007.46 

 433 807.13 

 440 087.51 

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Amortisation and depreciation

Depreciation and amortisation as a systematic allocation of the loss in value over the useful life of an 
asset is calculated using the straight-line method with the following rates:

Type of asset

Computer software

Furniture

Transport and kitchen equipment

Computer hardware

Technical equipment

Telecommunication audio-visual equipment

6. Short-term receivables

Straight line depreciation 
and amortisation rate

25%

10%

12.5%

25%

25%

25%

The Agency benefited from a direct exemption for VAT from the Slovenian state for purchases above 
the threshold amount of EUR 60. For purchases where the direct exemption was impracticable to 
obtain, the VAT was refunded by the Slovenian state on a quarterly basis.

The  advance  payments  made  to  contractors  and  recorded  as  short-term  pre-financing  related  to 
services derived from the long-term REMIT project are expected to be provided in the course of 2015.

Salary advances paid to staff members were processed and/or recovered by the Pay Master Office 
(PMO) from the staff member’s salary in the month following the payment month.

Deferred charges consisted of pre-payments made during the year, mainly on subscriptions and in-
surance premiums, recovery of overpaid salaries of staff members, and a deposit made for the rental 
of furnished offices from Poslovni Center za Opravljanje Celovitih Pisarniskih Storitev d.o.o. 

31 December 2014  
€

31 December 2013  
€

VAT receivable

2 218.86 

901.55 

Short term pre-financing

2 039 894.36 

475 000.00 

Salary advances paid to staff

70 831.99 

23 014.50 

Deferred charges

Prepayments

Accrued income

Bank charges

Deposits and guarantees

39 875.12 

74 985.27 

943.00   

221 284.92 

-

2 940.00 

9.90 

2 940.00 

2 156 703.33 

798 136.14 

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7. Cash and cash equivalents

0The Agency’s main bank account and the imprest account were held with UniCredit AG Germany 
based on a banking services contract signed between the two parties. At 31 December 2014 the bal-
ance of the main bank account contained the related cash needed to honour the Agency’s financial 
obligations carried over into 2015.

31 December 2014  
€

31 December 2013  
€

 3 359 200.55 

 5 458 261.60 

 12 427.77 

 649.94 

 10 006.98 

 279.73 

 3 372 278.26 

 5 468 548.31 

Bank account

Imprest account

Petty cash

8. Current liabilities

As of 31 December 2014, the Agency settled most of its current obligations towards its suppliers, 
apart from one minor payment to be executed at the beginning of 2015.

Accrued expenses related mainly to goods or service delivered at the end of the financial year, but for 
which the invoices were not received, amounted to EUR 389 797.65. According to the Staff Regula-
tions (Annex V – Leave, Article 4), staff members are entitled to a compensation equal to one thirtieth 
of his/her monthly remuneration for each leave day due to him/her at the time of leaving the service. 
A  holiday  compensation  amounting  to  EUR  98  745.71  was  calculated  and  recognised  as  accrued 
expenses for all untaken annual leave entitlements as at the end of the 2014 financial year.

The budgetary outturn result remains the property of the Commission and the Agency has an obli-
gation to return the unused amount of the pre-financing. The 2014 related budgetary outturn will be 
returned during 2015, on the Commission’s request.

Accounts payable

Accrued expenses

31 December 2014  
€

31 December 2013  
€

 348.38 

0.00

 488 543.36 

 507 402.51 

Repayable positive budgetary outturn 

 708 552.02 

 418 983.81 

 1 197 443.76 

 926 386.32 

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FINANCIAL INSTRUMENTS

The financial instruments held by the Agency are cash and cash equivalents, receivables and paya-
bles. The Agency has limited exposure to financial risks and it focuses on managing the risks identi-
fied below.

Credit risk

Credit risk arises when there is the possibility of the Agency’s receivables defaulting on their contrac-
tual obligations, resulting in a financial loss for the Agency.

The maximum exposure to credit risk at the end of the financial year 2014 is the carrying amount 
of the assets shown under the notes 6 ‘Short-term receivable’, excluding the amount of short-term 
pre-financing that is already secured by bank guarantees, and note 7 ‘Cash and cash equivalents’.

Credit risk associated with the Agency’s financial assets is minimal as the majority of them are held 
with institutions with an external credit rating within the upper classes of the scale or are with debt-
ors who have never defaulted on their debt. The table below presents the credit quality of those as-
sets that are neither impaired nor past due and were grouped into two categories, with and without 
external credit rating, for the current and previous financial years.

Category:

Financial Assets

2014

Counterparties with external credit rating

Prime and high grade

Upper medium grade

Cash and cash equivalents

3 372 278.26

Lower medium grade

Refund of VAT from 
Slovenian customs office

2 218.86

Counterparties without external credit rating

Debtors who have never defaulted

Receivables, accruals and deferrals

114 590.11

TOTAL

3 489 087.23

Category:

Financial Assets

2013

Counterparties with external credit rating

Prime and high grade

Cash and cash equivalents

5 468 548.31

Upper medium grade

Lower medium grade

Refund of VAT from 
Slovenian customs office

901.55

Counterparties without external credit rating

Debtors who have never defaulted

Receivables, accruals and deferrals

322 234.59

TOTAL

5 791 684.45

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Liquidity risk

Liquidity risk arises when the Agency is unable to meet its financial obligations as they fall due. The 
Agency is exposed to liquidity risk through its trading in the normal course of business, but has ap-
propriate treasury management procedures in place to monitor forecast cash flows and ensure that 
sufficient funds are available to meet its legal commitments as they fall due.

The Agency’s liabilities have remaining contractual maturities as shown in the following table:

At 31 December

Payables with third parties

Less than one year

Payables with consolidated entities

Less than one year

TOTAL

Market risk

2014

348.38

2013

0.00

708 900.40

418 983.81

709 248.78

418 983.81

Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates, 
will affect the Agency’s income or the value of its holdings of financial instruments.

The Agency does not have any borrowings and, therefore, no exposure to risks due to interest rate 
fluctuations, nor does it have any exposure to foreign exchange rates as all its holdings of financial 
instruments are held in the functional euro currency.

The following table shows a summary of all financial assets expressed in euros.

Exposure to euros at 31 December

2014

2013

Monetary assets

Cash and cash equivalents

3 372 278.26

5 468 548.31

Receivables with Member States

2 218.86

901.55

Monetary liabilities

Payables with third parties

348.38

0.00

Payables with consolidated entities

708 552.02

418 983.81

Net position

2 780 186.83

5 050 466.05

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CHANGES IN ACCOUNTING POLICIES

There have been no changes in accounting policies for the financial year 2014.

OTHER DISCLOSURE

Contribution in kind

During the financial year 2014 the following contribution in kind were accepted:

From the CEER:

(cid:116)(cid:1) office space, logistical and secretarial support for the Agency’s liaison office in Brussels free of any 

rent, fees and charges.

Neither the legal title nor the economic ownership passed to the Agency, therefore the non-exchange 
component of these transactions is not accounted for in the accounts of the Agency.

EVENTS AFTER BALANCE SHEET DATE

The Agency did not identify any material event after its balance sheet date that would have had an 
impact on its financial performance and position.

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Trg republike 3  
1000 Ljubljana  
Slovenia

t: +386 (0)8 2053 400 
e: info@acer.europa.eu 
www.acer.europa.eu