CRU Market Revenue Cap Surplus Assessment Supplementary Decision

Due to global events in 2022, which resulted in significantly higher-than-average electricity prices, the EU decided on emergency interventions, including a cap on market revenue(s) in the energy sector. Legislation, hereafter referred to as the Act, was enacted to introduce the cap on revenues in Ireland for the period between 1 December 2022 to 30 June 2023. The CRU is the competent authority, who plays a key role in administering the cap on market revenues in Ireland. EirGrid is the collection agent.

As of June 2024, approximately €188.9 million has been declared to the CRU, as the amount liable to be paid to the collection agent. EirGrid has collected 99.4 per cent of the monies that are liable to be paid. EirGrid is continuing to pursue the remaining uncollected amounts.

Supplementary Decision

The CRU has today, 28th June 2024, published a supplementary decision paper on two topics. First, the impact, including the materiality, of the final settlement re-run on participants’ original market revenue cap returns. Second, the impact, including materiality, of changes to PPAs or hedging arrangements, such as RESS arrangements or other schemes, on a participants’ original returns. The paper also provides guidance on next steps including the submission process and data requirements.

Consistent with the Act, participants will be required to submit an updated return and subsequently make a payment to (or receive payment from) the collection agent due to the impact of settlement re-runs or hedging-related changes. Based on the CRU’s supplementary decision and having regard to the administrative costs and benefits, a materiality threshold of €1000 applies for changes to participants’ adjusted surplus revenue as a result of either the M+13 settlement rerun and/or changes to hedging agreements.

Next steps

Participants are required to submit an updated return by 14th August 2024 if they have had a material change to adjusted surplus due to the M+13 settlement re-run or changes to hedging arrangements and PPAs. Participants are required to make payment of any liable amount following the self-billing process as defined by EirGrid. Payment for any liable amount as a result of the M+13 settlement rerun must be made by 31st August. Payment for any liable amount as a result of changes to hedging arrangements and PPAs must be made by 30th September 2024.

The CRU welcomes any queries to regarding the supplementary decision paper to the Market Revenue Cap mailbox (marketrevenuecap@cru.ie).