The Inter-Transmission System Operator Compensation (ITC) mechanism is defined by the Commission Regulation (EU) 838/2010. The ITC mechanism provides compensation for:
Part A of the Annex to the Regulation (EU) 838/2010 sets out guidelines on the ITC mechanism, covering the relevant costs, types of participants, derivation of the compensation and payment amounts and definitions of key input parameters. It also stipulates a number of duties for ACER, the key ones being:
In March 2013, the Agency published a recommendation on a new regulatory framework for ITC. In the Agency's view, the future framework should focus on: limiting the infrastructure compensation to existing infrastructures; engaging into cross-border cost allocation agreements for new investments; and on implementing an ex-post compensation mechanism for the loop-flow-induced costs and losses.