interoperability unit study: traction … interoperability unit study: traction current settlement...

ERA INTEROPERABILITY UNIT STUDY: TRACTION CURRENT SETTLEMENT SYSTEM

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INTEROPERABILITY UNIT

STUDY: TRACTION CURRENT SETTLEMENT SYSTEM

Reference: ERA/REP/07-2011/INT Document type: Final Report

Version: 1.0

Date: 14.04.2011

Prepared by Reviewed by Approved by

Name

Stanislaw LIS

Ignacio BALLESTER

Wouter MALFAIT

Airy MAGNIEN

Andrzej HARASSEK

Jean – Charles PICHANT

Position Project Officers Head of Economic Evaluation Unit

Head of Fixed Installations Sector

Head of Interoperability Unit

Date

&

Signat.

14/04/2011 14/04/2011 14/04/2011

ERA INTEROPERABILITY UNIT

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CONTENTS

EXECUTIVE SUMMARY

1. STUDY ON TRACTION SETTLEMENT SYSTEM ................................................................... 6

1.1 Mandate of the agency ..................................................................................................................... 6

1.2 Reference documents ....................................................................................................................... 7

1.3 Abbreviations and definitions ........................................................................................................... 8

1.4 Scope ............................................................................................................................................... 9

1.5 Working method .............................................................................................................................. 9

1.6 Reporting ...................................................................................................................................... 10

2. INTRODUCTION .................................................................................................................... 11

2.1 Main role of the Railway Traction Electric Energy network ............................................................ 11

2.2 Traction current supply systems ..................................................................................................... 12

2.3 Traction current billing .................................................................................................................. 13

2.4 Energy Settlement system, concept. ................................................................................................ 13

3. LEGAL BASIS AND SUPPORTING DOCUMENTS ................................................................ 14

3.1 Legal background .......................................................................................................................... 14

3.2 Energy Market & Railway Market ................................................................................................. 14

3.2.1 Railway market .......................................................................................................................................................... 14

3.2.2 Energy Market ........................................................................................................................................................... 17

3.2.3 Interaction between the Rail sector directives and the Energy Directive 2009/72 ............................................................... 19

4. ERA SURVEY QUESTIONNAIRE .......................................................................................... 21

4.1 Scope ............................................................................................................................................. 21

4.2 Structure ....................................................................................................................................... 21

4.3 Analysis ......................................................................................................................................... 22

4.3.1 Is the railway electric energy network considered to fall within the scope of energy market directives? ............................... 23

4.3.2 What is the actual status and role of the IM in relation to the energy market, according to energy market Directive

2003/54? ................................................................................................................................................................... 23

4.3.3 Do you have Third Party Access rules implemented for access to the IM’s electric energy network (to allow a choice

of energy supplier)? .................................................................................................................................................... 24

4.3.4 What methods are used for traction current billing? ........................................................................................................ 24

4.3.5 How many electric traction units are in use? .................................................................................................................. 25

4.3.6 In your network, an on – board meter is mandatory or optional........................................................................................ 25

4.3.7 In case of international traffic: what is the process to exchange data between IMs, between IM/RUs? ................................. 26

4.3.8 Will the IM’s electric energy network be considered as a ‘closed distribution system’ (according to art 28 of 2009/72

directive)? ................................................................................................................................................................. 26

4.3.9 General comments ...................................................................................................................................................... 27

5. TRACTION CURRENT SUPPLY ............................................................................................ 28

5.1 TPA NOT YET implemented (SCENARIO 0) ................................................................................. 28


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5.2 Implementation of Third Party Access for traction current ............................................................. 29

5.2.1 Scenario 1: Energy directive. ...................................................................................................................................... 29

5.2.2 Scenario 2: railway directive. ....................................................................................................................................... 31

5.2.3 Additional comments to both scenarios ......................................................................................................................... 32

6. FUNCTIONAL REQUIREMENTS OF THE SETTLEMENT SYSTEM ................................... 33

7. EXCHANGE OF DATA BETWEEN DIFFERENT ACTORS AND EXISTING

AGREEMENTS OF THE INDUSTRY...................................................................................... 35

7.1 Data exchange between different actors .......................................................................................... 35

7.1.1 Introduction ............................................................................................................................................................... 35

7.1.2 Public grid connection ................................................................................................................................................ 35

7.1.3 Supplier ..................................................................................................................................................................... 35

7.1.4 Balancing .................................................................................................................................................................. 35

7.1.5 Data exchange ............................................................................................................................................................ 36

7.1.6 Recognition of data from on board measurement equipment ........................................................................................... 36

8. ECONOMIC EVALUATION ................................................................................................... 37

9. CONCLUSIONS ....................................................................................................................... 38

9.1 Opportunity and consequences to include requirements from settlement system in ENE TSI ............ 39

9.1.1 Introduction ............................................................................................................................................................... 39

9.1.2 TSI – Functional versus structural approach .................................................................................................................. 39

9.2 Railway – energy markets interface ................................................................................................ 40

9.3 Implementation of TPA .................................................................................................................. 40

9.3.1 Proposal for further actions to be undertaken: ................................................................................................................ 41

10. LIST OF ANNEXES ........................................................................................................... 42


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EXECUTIVE SUMMARY

This report contains the Agency’s findings in relation to the tasks detailed in clause 2.2.e of the

Mandate received from the European Commission.

The main focus of this report is:

(i) the legal and technical aspects associated with application of the Third Party Access

concept (TPA) in relation to the supply of traction current to railway undertakings;

(ii) exploring the possibility of specifying, within the Technical Specifications for

Interoperability (TSI), the requirements for a railway traction energy settlement system;

(iii) assessing the likely scale of costs associated with implementing TPA in relation to

settlement and on-board metering. However, it does not seek to fully assess and

quantify the wider impact of TPA on the railway business;

In preparing this report the Agency has also sought information from, and taken into

consideration, input from a number of relevant stakeholders which include, Member States,

National Safety Authorities, rail sector actors and European rail sector organisations. In

addition, the Agency has also assembled a Task Force comprised of rail sector experts with

specific knowledge in this area to help support development of this report.

The analysis undertaken within this report is mainly based on examination of the relevant parts

of the existing rail and energy sector directives, and feedback from stakeholders in response to

the Agency’s questionnaire which was prepared specifically for this study.

In developing this report it has become increasingly clear that if under TPA the supplier of

traction current (i.e. the energy) to individual railway undertakings is located from outside the

rail sector, this will have impacts on actors within both the energy sector and rail sector.

Consequently there are associated legal and technical issues which impinge on both of these

sectors and those actors who have to comply with directives applicable to these sectors.

In order to facilitate the analysis, the report uses conceptual scenarios as a basis for exploration

of the main legal and technical aspects associated with the provision of TPA, settlement and

metering. The first scenario seeks to capture the current position in much of the European rail

sector where TPA is not widely adopted in relation to traction current supply. Two further

scenarios are used to explore the provision of TPA in the context of using the existing Railway

Directive (2001/14/EC) or by using the existing Energy Directive (2009/72/EC).

Based on the analysis and available information, the report sets out a number of conclusions.

The key findings are summarised below:

a) with regard to traction current, the existing rail and energy directives overlap;

b) the conceptual scenarios demonstrate that it is not possible to provide TPA at railway

undertaking level by simply applying the existing energy directive or existing railway

directive;

c) currently, within the rail sector, the Infrastructure Manager (IM) is usually the supplier

to railway undertakings, and most vehicles do not have on board energy metering;

d) at present much of the European rail sector is not yet technically ready to implement

TPA in the area of traction current. The technical constraints include factors such as the


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availability and deployment of suitable on-board metering and associated ground based

settlement systems;

e) the costs associated with widely deploying on board metering and settlement systems to

facilitate TPA in accordance with the study scenarios is estimated, on average, to

increase the annual cost of the total traction energy cost by 2.3% when compared with

the scenario without TPA. However, this percentage is subject to some uncertainty and

can vary substantially between member states;

f) there is currently a divergence between Member States in the application of the energy

directive to the rail sector and in particular to traction current;

g) if guidance is not available, the transposition of the energy directive within Member

States may be suboptimal for the rail sector and adversely impact domestic and

international railway passenger and freight business;

h) future implementation of TPA should be done in such a way that it does not conflict

with the Commissions objectives to ensure the rail sector becomes more competitive.

Adjustment to the existing legal framework based on Railway Directive 2001/14 is

likely to be necessary to achieve TPA in the railway sector;

i) given the structural nature of the relevant Technical Specifications for Interoperability

(TSI) and the requirements associated with a suitable settlement system, the existing

TSIs do not present a suitable opportunity to include settlement system requirements.

Such requirements would be better placed in separate documents, the exact nature of

which will also be influenced by the decisions taken in respect of the eventual legal

framework for implementing TPA.

Consequently, in light of the conclusions reached within this report there are a range of issues

which need to be addressed and further actions have been identified in order to progress towards

a more competitive and liberalised railway market.


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1. STUDY ON TRACTION SETTLEMENT SYSTEM

This report has been prepared jointly by the Interoperability and the Economic Evaluation Units

of the European Railway Agency; the Impact Assessment (Annex 2) has been elaborated by the

Economic Evaluation Unit.

1.1 MANDATE OF THE AGENCY

The Article 1 of the Commission Decision C (2010)2576 final, concerning a mandate to the

European Railway Agency to develop and review Technical Specifications for Interoperability

with a view to extending their scope to the whole rail system in the European Union states that:

“The mandate for extending the scope of technical specifications for interoperability ("TSI") to

be issued in accordance with Article 8(2) of Directive 2008/57/EC is hereby adopted by the

Commission.”

The Annex, Section 2.2. of the Mandate 2010 states that:

“The Agency shall carry out the following complementary studies:

(...)

e) “Complementary study on the opportunity and the consequences to specify, in the TSI on

Energy, requirements concerning the infrastructure part of the traction energy billing system.

This study should cover at least the following aspects: the interface with the energy suppliers,

the interaction between the interoperability directive and the energy directive (Directive

2009/72/EC), the implementation of the Third Party Access in the rail sector, the requirements of

the settlement system, the exchange of data between the different actors, the existing agreements

of the industry.”

The final reports concerning the abovementioned complementary studies shall be delivered as

set out in section 3.2 (...). Where appropriate, on the basis of the results of these studies, the

present mandate will be updated by the Commission in accordance with the procedure set out in

Article 29(3) of Directive 2008/57/EC.”


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1.2 REFERENCE DOCUMENTS

Ref. Document Reference Official

Journal

Last

Modification Version

[1] Commission Decision C(2010)2576 final of 29.4.2010

concerning a mandate to the European Railway Agency to

develop and review Technical Specifications for

Interoperability with a view to extending their scope to the

whole rail system in the European Union

[2] Council Directive 91/440/EEC on the development of the

Community´s railways

L 237, p 25

[3] Directive 2001/14/EC of the European Parliament and of

the Council on the allocation railway infrastructure capacity

and the levying of charges for the use of railway

infrastructure and safety certification

L 75, p. 29

[4] Proposal for a Directive of the European Parliament and of

the Council establishing a single European railway area

(Recast) SEC(2010) 1043, SEC(2010) 1042


the Council concerning common rules for the internal

market in electricity and repealing Directive 96/92/EC

L 176, p. 37

[6] Directive 2009/72/EC of the European Parliament and the

Council concerning common rules for the internal market in

electricity and repealing Directive 2003/54/EC

L 211, p. 55


the Council of 17 June 2008 on the interoperability of the

rail system within the Community (with amendments done

in 2011)

L 191, p.1

L 57, p.21

[8] Regulation (EEC) No 2598/70 of the Commission of 18

December 1970 specifying the items to be included under

the various headings in the forms of accounts shown in

Annex I to Council Regulation (EEC) No 1108/70 of 4 June

1970

L 278, p.1

[9] Regulation (EC) No 881/2004 of the European Parliament

and of the Council of 29 April 2004 establishing a

European railway agency (Agency Regulation)

L 164, p. 1

[10] Regulation (EC) No 1335/2008 of the European Parliament

and of the Council of 16 December 2008 amending

Regulation (EC) No 881/2004 establishing a European

Railway Agency (Agency Regulation)

L 354, p.51

[11] “Economic Methodology Guidelines”, 15/12/2006,

Document approved by the Article 21 Committee on 26

April 2007.


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1.3 ABBREVIATIONS AND DEFINITIONS

ABBREVIATION FULL TEXT / DEFINITION

AC Alternating current

Agency The European Railway Agency (ERA)

CBA Cost Benefit Analysis

CENELEC European Committee for Electrotechnical Standardisation

CDSO Close Distribution System Operator

CR Conventional Rail

DC Direct current

DSO Distribution System Operator

ECJ European Court of Justice

EE Economic Evaluation

EMS Energy Measuring System

EN European Norm

ENE Energy

ERA The European Railway Agency

HV High Voltage

IA Impact assessment

IEM Internal Electricity Market

IM Infrastructure Manager

INF Infrastructure

LOC&PAS Locomotive and passenger carriages

MS Member State

NoBo Notified Body

NSA National Safety Authority

OCL Overhead contact line


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RST Rolling stock

RU Railway Undertaking

TEN Trans – European Network

TEU Treaty of the European Union

TPA Third Party Access

TSI Technical Specifications for Interoperability

TSO Transmission System Operator

UIC International Union of Railways

WP Working Party

WWII World War II

1.4 SCOPE

According to COMMISSION DECISION of 29.4.2010, the study should cover at least the

following aspects:

Analysis of the opportunity and the consequences to specify, in the TSI on Energy,

requirements concerning the infrastructure part of the traction energy billing system;

the interface with the energy suppliers;

the interaction between the interoperability directive and the energy directive (Directive

2009/72/EC);

the implementation of the Third Party Access in the rail sector;

the requirements of the settlement system;

the exchange of data between the different actors;

existing agreements of the industry.

1.5 WORKING METHOD

The analysis has been carried out by the Fixed Installations Sector of the Interoperability Unit of

the European railway Agency in collaboration with other Sectors and Units of the Agency,

particularly with the Economic Evaluation Unit.

To draft the study a task force was created in order to collaborate with ERA. ERA

requested from CER, EIM and UNIFE candidates.

A questionnaire was created by ERA, and was sent and addressed to the railway sector

via NSAs and Representative Bodies. The purpose of the questionnaire was to have an

overview of the current situation on traction energy settlement system in the European

Union and consequences of the implementation of the energy market directives in the

railway sector.


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1.6 REPORTING

The report for this study will be delivered to the European Commission by 4 May 2011.

Comments received from NSAs and Representative Bodies have been taken into account in the

final version.

The report summarises the conclusions of the study, highlights the problems to be solved in the

current situation and proposes further actions to be undertaken.


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2. INTRODUCTION

2.1 MAIN ROLE OF THE RAILWAY TRACTION ELECTRIC ENERGY

NETWORK

The main objective and business of the railway sector it is to provide a transport service to

passengers and freight customers, utilizing the railway network, in a safe way.

As propulsion the railway uses different sources of energy. In the past it was steam, generated in

the locomotive taking heat from burning coal or oil. Now diesel and electric engines are in use.

The last one can be supplied from internal – installed batteries on the vehicle – or external

sources – via contact lines. It should be underlined that majority of today traffic is done by

traction units taking electric power from external sources via contact lines.

Though, as it is estimated, a significant 10% of total costs spent by railway operators are traction

costs, it should be highlighted that delivery of power – including also electric energy – has to be

considered as an ancillary service in order to achieve the main objectives.

The railway traction network seems to look similar to public electric energy system, but there are

major differences. Some important aspects were given below.

Traction current network was exclusively invented and designed to meet propulsion

requirements and also railway restrictions. Among the most important aspects which should have

been addressed, were the support for the reliability and punctuality of transport, increase of line

capacity, train speed, safety of passengers, staff and third parties along the electrified track.

Since the very beginning it was clear that 3 phase – used in the energy market – is not suitable

for railway because of technical difficulties. Instead 1 phase/DC systems were introduced.

It should be added that majority of different railway supply systems were developed before the

WWII, taking into account technologies available at that time. Moreover the decision, on

choosing the supply system by particular country, was also based on national, military, strategic

reasons.

Though today the technological progress reduces some limitations but does not eliminate them

completely.

Contact line – particularly overhead contact line – systems not only convey energy (like in the

public transmission/distribution systems) but they should also fulfil complicated mechanical

requirements (like e.g.: as much as possible constant height over a track, higher tensions, more

frequent supports). It has to assure the delivery of current without, as much as possible,

interruptions, with the best collection quality to mobile objects.

This requires the use of much more expensive materials (mainly copper/copper alloy) compared

to energy market (mainly aluminium/iron). Due to the contact with current collectors the life

cycle of a contact line is significantly lower than overhead/cable lines and apart from costs, the

replacement creates also transport (the core railway business) disruptions.

Substation equipment has to be tailored to the railway needs: traction supply system, voltage and

current levels which are not spotted outside, more frequent appearance of short circuits and other

failures compared to public energy system, higher safety requirements due to voltage level and

possible availability by people and animals.


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Mobile customers have to accept higher ranges of voltages and frequencies and more often

supply interruptions (intentional – in separation sections and unintentional – during i.e. short

circuits or overloads) in comparison to energy market.

On the other hand it should be underlined that the railway electrification had (and still has) the

immense impact on the development of public electric grid in different countries. To deliver

significant power to the trains, parallel to contact line, substations and overhead lines owned by

the railway – power, transformer stations and connecting HV lines of public network were built,

giving base for future investments in infrastructure, industry, accommodation, etc.

Particular exception creates low frequency 16,7 Hz system, which was developed independently

from public 3 phase 50 Hz. This system owns its power plants, HV network and even

international HV interconnectors. Today, together with technology progress, it is supported by

converter substations 3~50 Hz/1~16,7Hz.

The energy system of the IM is not only used for traction reasons. Part of the energy is used for

other equipment and tasks that are also essential to let the trains drive, for example;

signalisation,

switches (including heating),

pre – heating of passenger trains,

maintenance and other technical facilities (from IM and RU),

passenger stations (including shops),

communication,

lighting,

etc.

The technical requirements for these installations are more comparable with those of the public

grid (AC, tension, fixed off – take points). Nevertheless also in this case, the energy must be

considered as an ancillary service in order to achieve the main objectives.

2.2 TRACTION CURRENT SUPPLY SYSTEMS

As it was mentioned above electric energy is one of the sources of propelling a train. For traction

purposes the main railway lines in Europe are electrified in majority (about 98% of the railway

networks in EU27, Norway, and Switzerland) with four systems:

1~AC 25kV 50Hz,

1~AC 15kV 16,7Hz,

DC 3kV,

DC 1.5kV

In case of traction current, the energy taken from the public grid – transmission and distribution

system – is later, on the railway side, transformed/converted in substations and delivered to

electric vehicles via contact lines and rails.

In countries using traction current with reduced frequency – 16,7 Hz – there is also a separate

high voltage network (which includes dedicated generators).


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2.3 TRACTION CURRENT BILLING

The invoice for traction current can be issued on the two different bases:

The consumption of energy, which is delivered for traction purposes, is measured by the

meters (fulfilling the requirements on the energy market) on the primary side of the

substations. Later on it is distributed to vehicles and RUs are billed on the basis of their

train operations and associated payload (passengers / freight). Typically these estimated

methods take into account the characteristic of the vehicle, track profile and layout etc.;

The other method is to charge RUs on the basis of energy measurement by meters

installed on – board of the vehicles. In this case the railway IM normally needs access to

data from the vehicles to support activities such as settlement and billing relating to all

energy distributed and traded via the traction current supply system.

The deeper analyses of this issue will be given in following chapters.

2.4 ENERGY SETTLEMENT SYSTEM, CONCEPT.

The terms billing and settlement are often imprecisely used and can be subject to different

interpretations. Below we explain the differences in the aim to eliminate doubts and

misunderstanding.

The ‘energy settlement system’ is defined as the process by which data from measured points

are attributed to the particular point of the energy supply chain, combining with tariff

information, providing a basis for payments for the volume of energy, the use of system charges

associated with transmission and distribution networks, and also the contractual trade

arrangement between the actors of the energy chain (e.g. generators, transmission / distribution

system operators, suppliers, customers etc.).

The ‘energy billing system’ is the financial transaction inside the supply chain, based on

accountancy, taking data collected from energy settlement system.

Therefore, data used by energy billing system to invoice the various actors, including the final

customers, will be provided by energy settlement system.

Simplifying – the settlement system deals with acquisition and allocation of energy data while

the billing system is a financial tool (normally applied by each company) to create invoices

based on the settlement system data.

Taking all into account in the report we will further analyse the requirements in relation to

settlement but not billing system.


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3. LEGAL BASIS AND SUPPORTING DOCUMENTS

3.1 LEGAL BACKGROUND

Though both railway and energy markets have been developed separately, in each case the

approach to create common, open, competitive market seemed to be similar.

Due to their strategic importance, as a base for development and security of each Member State,

for a long time railway and energy supply were controlled and supervised by state authorities and

tightly protected from any foreign influences.

To break this rule, steps were introduced to split the national organisations into independent

undertakings, dealing, generally, with:

Delivering of ‘service’ – it means: electricity supply (in energy market) or transport of

passengers/freight (in railway market)

Operating and maintenance of infrastructure/network, which enables to provide the

abovementioned ‘service’ to the customers – energy consumers or individual

passengers/freight receivers.

Those steps were undertaken by the Commission by issuing legal acts on European level in the

form of railway and energy packages.

To support the European legislations creating common rules for internal markets – both energy

and railway, independent regulators – in each Member State – were established to oversee,

control and ensure the competitive and non – discriminatory access to those markets.

Additionally the law foresees the cooperation of each market regulatory bodies at European

level.

3.2 ENERGY MARKET & RAILWAY MARKET

It is important to identify the link between both markets, railway market and energy market, and

to identify the roles that RUs and IMs take according to energy market definitions.

3.2.1 RAILWAY MARKET

Among the legal documents referring to the railway market we would concentrate on those

relating to the actors and their relations to access and ownership of railway infrastructure with

particular focus on energy subsystem.

Within the railway market there are two groups of directives, one dealing with organisation and

operation of the market (e.g. 1991/440 and 2001/14), and the other dealing with specifications to

safeguard interoperability and technical compatibility (e.g. 2008/57 with amendments).

3.2.1.1 RAILWAY INFRASTRUCTURE

At the beginning we should raise a question what is behind this term. The complex definition

was given in the Council Directive 91/440/EEC on the development of the Community’s

railways (considered as the first act encouraging competitiveness and market opening):

‘railway infrastructure’ shall mean all the items listed in Annex I.A to Commission Regulation

(EEC) N° 2598/70 of 18 December 1970 specifying the items to be included under the various

headings in the forms of accounts shown in Annex I to Regulation (EEC) N° 1108/70(1), with the

exception of the final indent which, for the purposes of this Directive only, shall read as follows:

'Buildings used by the infrastructure department'


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To complement this view, the relevant indent in the abovementioned regulation referring to

traction current energy supply says:

Railway infrastructure consists of the following items, provided they form part of the permanent

way, including sidings, but excluding lines situated within railway repair workshops, depots or

locomotive sheds, and private branch lines or sidings:

- Ground area;

- Track and track bed

(...)

- Plant for transforming and carrying electric power for train haulage: sub – stations, supply

cables between sub – stations and contact wires, catenaries and supports; third rail with

supports;

(...)

3.2.1.2 RAILWAY ACTORS

The main activities in the railway market are:

- management of railway infrastructure – performed by IM´s.

- rail transport activities – fulfilled by RU´s.

The definition of both actors was also given in Directive 91/440/EEC but hereunder it is cited its

more developed version, which appeared in Directive 2001/14/EC:

‘Infrastructure manager’ means any body or undertaking that is responsible in particular for

establishing and maintaining railway infrastructure. This may also include the management of

infrastructure control and safety systems. The functions of the infrastructure manager on

a network or part of a network may be allocated to different bodies or undertakings;

‘Railway undertaking’ means any public or private undertaking, licensed according to

applicable Community legislation, the principal business of which is to provide services for the

transport of goods and/or passengers by rail with a requirement that the undertaking must

ensure traction; this also includes undertakings which provide traction only;

It should be underlined, that performing above activities does not require the ownership of either

infrastructure or vehicles.

Infrastructure manager/railway undertaking rights and obligations in relation to traction current

supply

From the rights and obligations imposed by European railway legislation we would stress those

referring to access to supply equipment for traction current, and the provision of the traction

current. These aspects are covered by Directive 2001/14/EC on the allocation of railway

infrastructure capacity and the levying of charges for the use of railway infrastructure and safety

certification.

The art.5, together with Annex II, defined ‘services’ which can be provided by IM for RU´s.

Some of them are inside compulsory access package, others as ‘additional services’ provided

upon the RU request.

In case of traction current supply ‘use of electrical supply equipment for traction current, where

available’ is among items listed in Annex II, point 2.


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As it is set out in the art.5, point 1 – The supply of services referred to in Annex II, point 2 shall

be provided in a non – discriminatory manner and requests by railway undertakings may only be

rejected if viable alternatives under market conditions exist.

The traction current itself is considered as ‘additional service’ (see Annex II, point 3).

But according to the art.5, point 2 – Where the infrastructure manager offers any of the range of

services described in Annex II, point 3 as additional services he shall supply them upon request

to a railway undertaking.

Proposal for a Directive of the European Parliament and of the Council establishing a single

European railway area (Recast) COM(2010) 475 final.

This new directive will repeal, among others, Directives 91/440 and 2001/14. It is a reaction of

the Commission on the result of implementation of first railway package (which included also

Directive 2001/14) in Member States. But it also reflects a need for legal simplification and

clarification of some provision, to eliminate doubts in application. In this report we would

concentrate on aspects – already mentioned and changes implemented in COM(2110) 475 final.

Definitions:

The definitions of ‘railway undertaking’ and ‘infrastructure manager’ were adapted. The

definition of railway infrastructure appeared again as adaptation of definition from dir. 91/440.

As an important modification the new Annex I was added, listing the items belonging to the

railway infrastructure to be in accordance with 2598/70 Regulation.

Services:

The article 13 of new directive (corresponding to art. 5 of Directive 2001/14) referring to

‘conditions of access to service’ and accompanied with the Annex III (former Annex II of

Directive 2001/14) extended significantly provisions addressing access to service facilities and

the supply of the services (see Art.13 point.2).

The important changes were introduced to aspects relating to energy supply. The Commission

proposed, in the context of the recast of the first railway package (COM(2010) 475 final), to

include the use of electrical supply equipment for traction current in the so-called "minimum

access package", the minimum set of services to which all railway undertakings are entitled in a

non-discriminatory manner upon payment of a charge set at the cost directly incurred as a result

of operating the train service (direct cost).

The traction current can still be offered as additional service but charges for which shall be

shown on the invoices separately from charges for using the electrical supply equipment.

Furthermore, the draft text states that where this service is offered by only one supplier the

charge imposed shall not exceed the cost of supplying it, plus reasonable profit (see art.31.8).

It should also be noted that the supply of ‘traction current’ is generally exempt from the

principles of charging (art.31), except for the ‘single supplier’ situation mentioned in the

previous sentence.

3.2.1.3 REGULATORY BODY

Responsibilities of railway market regulatory body are defined in the relevant articles of above

mentioned Directives.


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In case of charges the regulatory body shall ensure that they comply with provisions referred in

chapter ‘infrastructure charges’ and are non – discriminatory (see art. 30.3 of Directive 2001/14

corresponding to art. 56.3 of the recast).

Additionally Member States shall take the measures necessary to ensure that decisions taken by

the regulatory body are subject to judicial review (see art. 30.6 of Directive 2001/14

corresponding to art. 56.6 of the recast).

3.2.2 ENERGY MARKET

3.2.2.1 ENERGY MARKET LIBERALISATION

The liberalisation of energy market in the European Union is a process driven by the Directives

of the European Parliament and of the Council (Directive 96/92/EC, Directive 2003/54/EC,

Directive 2009/72/EC).

The Directives laid down the general conditions that should be in place to assure the creation of

a single internal electricity market (IEM) in Europe.

The way to reach this goal started with Directive 96/92/EC, by introducing the concept of

eligible customers, being consumers who have the legal capacity to contract volumes of

electricity from any supplier.

This process was accelerated by Directive 2003/54/EC, introducing the Third Party Access

principle, by which suppliers and generators will have access to the grid to settle negotiated

electrical energy transactions for delivering electric energy.

Therefore, TPA constitutes one of the keys on the liberalisation of the electricity market in

Europe. Under the energy market liberalisation all eligible customers benefit from this

liberalisation from 2007.

3.2.2.2 THIRD ELECTRICITY PACKAGE

In this context, on July 13th 2009 the European Parliament and the Council of the European

Union published the Third Electricity Package in which there was a new Directive 2009/72/CE –

concerning common rule for the internal market in electricity and repealing Directive

2003/54/EC. This directive needs to be transposed to law in all Member States by March 2011.

Among the significant changes this new electricity directive introduced, it was the new concept

of ‘Closed Distribution Systems’ which can be applicable for nearly all electricity networks

that aren’t public – transmission or distribution grids (article 28).

This concept was introduced after the ECJ ruling related to the Citiworks AG case (Case number

C – 439/06). See also clause 3.2.2.4

Main actors in the energy market

If we look at the energy market similarly to railway market – from service provider and manager

of infrastructure point of view – we can distinguish following actors (definitions after art.2 of

Directive 2009/72/EC):

‘producer’ means a natural or legal person generating electricity;

‘supplier’ who ‘supplies’ which means the sale, including resale, of electricity to

customers;


PAGE 18 OF 42

‘transmission system operator’ (TSO) means a natural or legal person responsible for

operating, ensuring the maintenance of and, if necessary, developing the transmission

system in a given area and, where applicable, its interconnections with other systems,

and for ensuring the long – term ability of the system to meet reasonable demands for

the transmission of electricity;

‘distribution system operator’ (DSO) means a natural or legal person responsible for

operating, ensuring the maintenance of and, if necessary, developing the distribution

system in a given area and, where applicable, its interconnections with other systems

and for ensuring the long – term ability of the system to meet reasonable demands for

the distribution of electricity;

‘wholesale customer’ means a natural or legal person purchasing electricity for the

purpose of resale inside or outside the system where he is established;

‘final customer’ means a customer purchasing electricity for his own use;

Detailed obligation for TSO and for DSO are given in chapters – respectively – IV, V and VI of

abovementioned Directive.

3.2.2.3 REGULATORY BODY

Chapter IX of Directive 2009/72/EC specifies the role and duties of national energy regulatory

authorities towards energy market underlining their independence and power in relation to

consumer protection and effective competition.

Directive also stresses the need of cooperation energy market regulators – at the European level

and fostering the cross – border links.

3.2.2.4 CLOSED DISTRIBUTION SYSTEMS (ARTICLE 28)

The concept of a close distribution system was introduced to facilitate third party access on

certain distribution systems with specific characteristics, where slightly less onerous and

proportionate requirements are considered appropriate. This gives an opportunity to final energy

customers, located ‘within a geographically confined industrial, commercial or shared services

site’ to benefit from TPA rule. As a consequence it also enables any energy suppliers to have

access to these potential customers.

Article 28 of Energy Directive 2009/72 provides the legal basis for Member States to classify

a system which distributes electricity, in these areas, as a closed distribution system if:

for specific technical or safety reasons, the operations or the production process of the

users of that system are integrated, or

the system distributes electricity primarily to the owner or operator of the system or

their related undertakings.

More details what ‘can include closed distribution systems’ indicates recital (30) of the

Directive:

‘Industrial, commercial or shared services sites such as train station buildings, airports,

hospitals, large camping sites with integrated facilities or chemical industry sites’.

It should be underlined that the operator of a closed distribution system shall fulfil the DSO

requirements set in chapter VI of above mentioned Directive but Member States may exempt it

from following obligations:


PAGE 19 OF 42

to procure the energy it to cover energy losses and reserve capacity in its system;

to approve tariffs prior to their entry into – force.

In addition the Commission issued the Interpretative Note on Directive 2009/72 EC concerning

common rules for the internal market in electricity. Clause 5 of this document provides further

interpretation regarding closed distribution systems.

3.2.2.5 THIRD – PARTY ACCESS (TPA)

The idea of third party access (TPA) – so strongly highlighted by energy market directives – is

a consequence of opening for competition the internal EU market. In the context of creation of

an internal open market, with a principle proposed by article 3 of the Treaty of the European

Union (TEU) together with the Protocol 27 of the TEU, many economic sectors within the

European Union have undergone a liberalisation process over the past decades. Also the

electricity sector and the railway sector, both referred to as ‘network industries’, belong to this

category.

The liberalisation process in these ‘network industries’ leads to provide third parties with access

to the network, to certain ‘essential facilities’ that cannot be duplicated for economic reasons.

In the electricity sector, this means that the end – user, which is connected to the network, has

a free choice of energy supplier and that the supplier/producer has free access to this network

and all customers connected to it.

Important aspect, which should be mentioned in the process of supply, is the balancing – the

comparison between the amount of energy injected (import or production) within discrete time

period with the real off take (export or consumption). This balancing process can have financial

consequences. More details about the process in the case of traction current supply are described

in clause 7.

3.2.3 INTERACTION BETWEEN THE RAIL SECTOR DIRECTIVES AND THE

ENERGY DIRECTIVE 2009/72

To address current supply issue in interaction with energy directive 2009/72 we will take into

account Directive 2001/14 and Interoperability Directive 2008/57. At the beginning we will

compare energy directive 2009/72 with Directive 2001/14.

Both directives – the Electricity and the Railway – deal with different markets. In case of

implementation of the principle of free access to infrastructure they are compliant with idea of

opening each market for competition. But the scopes are different.

The scope of Directive 2009/72 is to establish ‘common rules for the generation, transmission,

distribution and supply of electricity, together with consumer protection provisions, with a view

to improving and integrating competitive electricity markets in the Community’.

Directive 2001/14 ‘concerns the principles and procedures to be applied with regard to the

setting and charging of railway infrastructure charges and the allocation of railway

infrastructure capacity’. It deals with all issues relating to the access to railway infrastructure

and the traction current supply is only one of aspects addressed in art.5.2 and Annex II point 3.


PAGE 20 OF 42

If we concentrate on current supply, both directives do not contain the same principles. One

states that the free choice of electricity supplier is mandatory; the other does not give such an

obligation however free supplier choice is not ruled out entirely. But it should be underlined that

Directive 2001/14 (though even older than Directive 2003/54, introducing TPA rule in energy

market) was the first one taking into account possible option for RU not to be supplied by IM by

including traction current in additional services offered by IM.

The Electricity Directive 2009/72 and the Railway Directive 2001/14 foresee both a detailed way

to implement the principle of opening the market, for example:

- an independent regulator;

- possible combination of different roles;

- contracts;

- tariffs;

- procedure to treat complaints.

It should also be noted (as it was mentioned above) that though there are similarities, the current

supply to mobile customers is a different task compared to supply fixed customers from public

grid.

These specific issues are not taken into account by energy market directive organizing generally

the market.

What’s more, train operators would like to benefit from harmonized rules in international traffic.

Those rules are implemented in the whole railway sector with the provisions of the

Interoperability Directive (last version 2008/57) and application of relevant TSIs.

In the case of energy supply, to avoid variety of solutions, appropriate requirements referring on

– board meters were set out in the TSI.

But the interoperability issues as they are understood in railway field are not addressed in the

energy market. Energy market directive concentrates only on creating a general legal framework

(which later on is filled by national implementation) and rules with more freedom. In this sense

European railway legislation is much stricter, limiting MS’ activity.

With this different approach we would face more problems in the future in development of

international and domestic railway traffic.


PAGE 21 OF 42

4. ERA SURVEY QUESTIONNAIRE

4.1 SCOPE

ERA developed a questionnaire and sent it to National Safety Authorities and Representative

Bodies with the aim of getting an overview of the current situation on traction energy settlement

system in the European Union, and consequences of the implementation of the energy market

directives in the railway sector.

4.2 STRUCTURE

The questionnaire was divided in six parts, as follows:

Energy market – current situation and the consequences of application of energy

directives for IM and for RU;

Railway traction current supply – current situation in railway traction and non–

traction current supply, with indication of actors and their role in this process,

implementation of Third Party Access rules;

Traction energy billing system – the relative share of bills based on the carried load

versus bills based on energy on – board meters;

Vehicles – the number of vehicles equipped with on – board meters/used for billing and

its characteristics;

Billing system/data transfer based on on–board meters – the current requirements of

traction energy settlement systems, data exchange, the current status of utilisation, and

the technical and legal requirements for existing on– board meters;

Questions to assess the future situation – consequences of application energy market

Directive 2009/72, ‘DSO’ or ‘closed distribution system’ and Measuring Instruments

Directive.


PAGE 22 OF 42

4.3 ANALYSIS

At the process of the analysis of the questionnaires’ answers we focused on aspects relating to

traction current and its relationship between energy and railway market.

The following table summarizes the answers received with reference to countries and taking into

account the source: national safety authority (NSA), railway undertaking (RU), infrastructure

manager (IM)

Questionnaires Countries Number NSA RU IM

1 DE 2 1*) 1

2 PT 1 1

3 FR 2 1 1

4 UK 1 1

5 PO 2 2

6 IT 2 1 1

7 A 2 1

1

8 FI 1 1

9 BE 2 1 1

10 SL 3 2 1

11 CS 1 1

12 ET 1 1

13 NL 2 1 1

14 RO 1 1

15 SV 1 1

16 HU 1 1

17 ES 2 1 1

18 NOR 1 1

28 9 8 11

*) The answer was prepared with cooperation of Federal Network Agency.

Below we would comment some questions and their answers, giving an overview on current

status of traction current supply.

NOTE: in following diagrams ‘NA’ means – No Answer provided


PAGE 23 OF 42

4.3.1 IS THE RAILWAY ELECTRIC ENERGY NETWORK CONSIDERED TO FALL

WITHIN THE SCOPE OF ENERGY MARKET DIRECTIVES?

The significant numbers of answers consider the railway electric energy network and particularly

that related to traction current supply as not (or not completely) falling under energy market

regulation.

In case of answers YES, the new concept of Closed Distribution system (created by Directive

2009/72), was taken into account as possibly applicable for traction railway system.

4.3.2 WHAT IS THE ACTUAL STATUS AND ROLE OF THE IM IN RELATION TO

THE ENERGY MARKET, ACCORDING TO ENERGY MARKET DIRECTIVE

2003/54?

In majority of countries, the role of IM, according to former energy directive, is limited to final

customer or private network owner, not being a subject of energy market directive.

The answer indicated as DSO + final customer should be understood that IM is considered as

DSO in relation to 3 – phase 50 Hz grid belonging to IM but final customer for traction current

installations.

Particular attention should be given to the case where IM has DSO license and plays an active

role on the energy market. In this example, IM has a special branch or is an independent

company which main business and activities are inside the energy market and is supervised by

the energy market regulator.

YES 38.9%

NO (or not completely)

50.0%

YES BUT EXCLUDING OCL

5.6% NA 5.6%

DSO 11.1%

FINAL CUSTOMER / PRIVATE NETWORK

OWNER 66.7%

DSO+FINAL CUSTOMER

16.7%

NA 5.6%


PAGE 24 OF 42

4.3.3 DO YOU HAVE THIRD PARTY ACCESS RULES IMPLEMENTED FOR

ACCESS TO THE IM’S ELECTRIC ENERGY NETWORK (TO ALLOW A

CHOICE OF ENERGY SUPPLIER)?

The answers clearly reflected the present situation – traction current supply, due to particular

features and dedicated installations, is considered as a service naturally delivered by IM. As

main reasons behind are:

national legal situation – clearly indicating IM as the only supplier;

European legal situation – some member states consider that traction current supply is

out of the scope of energy market directive (see clause 4.3.1);

lack of alternative solutions: organisational, standards, equipment;

only IM has the knowledge about the railway traffic – number of trains, carried load and

passengers etc. – which is needed to calculate the energy consumption on the base of

estimations (see also clause 4.3.4).

It is important to underline that among answers YES for implementation of rules, not all IM have

already prepared technical solutions (meters on board, settlement system).

4.3.4 WHAT METHODS ARE USED FOR TRACTION CURRENT BILLING?

Due to the fact that currently only small number of vehicles are equipped with meters for billing

purposes (see clause 3.3.5), in majority cases bills for traction current consumption are based on

different estimated methods. Inside combination there have been included cases that the data

coming from the meters are used not to invoice but to measure the consumption that will be later

used as an input in the estimated method. It must be highlighted that there is no possibility to

avoid estimated methods completely – they will always be used for vehicles not equipped with

meters.

But even in the case of vehicles equipped with meters, the data from them may not be available

(damage of on – board installations or lack of communication) or trustful.

YES 29,4%

NO 70,6%

TRACTION CURRENT

ESTIMATED METHOD

82,4%

COMBINATION 11,8%

METERS 5,9%


PAGE 25 OF 42

4.3.5 HOW MANY ELECTRIC TRACTION UNITS ARE IN USE?

This calculation was done taking into account questionnaire answers and data on total number of

electrical RST – units in Europe: 70.000 RST – units (Table 21 ‘Tractive Stock’ – Railway

International Statistics 2008) and represents the current situation.

It should be underlined that any future change in the share of metered vehicles depends, among

others, on:

availability of standard on – board equipment;

costs of installation, maintenance, legal limits (new homologations) particularly for

retrofitting rolling stock;

age of rolling stock;

purpose – energy saving, billing;

preparation of IM;

Member State policy.

4.3.6 IN YOUR NETWORK, AN ON – BOARD METER IS MANDATORY OR

OPTIONAL

This diagram reflexes the current approach – generally on – board meter is considered as

‘optional’ equipment of the vehicle. The answer – ‘mandatory’ – represents one MS. But in

some MS the implementation plans exist for on board meters installations, referring new RST in

the next years.

Equipped with meters acc. TSI 0,39%

Equipped with meters acc. with national

standards 11,96%

NON EQUIPPED 87,65%

MANDATORY 5,56%

OPTIONAL 77,78%

NA 16,67%


PAGE 26 OF 42

4.3.7 IN CASE OF INTERNATIONAL TRAFFIC: WHAT IS THE PROCESS TO

EXCHANGE DATA BETWEEN IMS, BETWEEN IM/RUS?

For international traffic, the exchange of consumption data between IM´s / IM´s and IM´s /

RU´s, has a great importance for the application of TPA.

UIC organised a group, which later on developed a leaflet 930 titled: Exchange of data for cross

– border railway energy settlement. Its aim was to establish a voluntary standard for exchanging

data for cross – border traffic.

Though it makes a step forward in creation of common agreement on this issue and gains

popularity among IM´s, but according to answers still the majority does not recognize it as

a common standard. This is obviously also caused by the small amount of interoperable meters,

being already operational (see clause 4.3.5).

Some countries indicated that this protocol is being implemented or has been implemented but is

still not in use (considered in both cases as YES).

4.3.8 WILL THE IM’S ELECTRIC ENERGY NETWORK BE CONSIDERED AS

A ‘CLOSED DISTRIBUTION SYSTEM’ (ACCORDING TO ART 28 OF 2009/72

DIRECTIVE)?

This question asked for future possible implementation of new energy market directive in the

railway field and in this case application of close distribution system as a solution (see also

clause 3.2.2.4 – Closed distribution systems). Half of answers indicated YES. As it was

underlined above – the introduction of directive 2009/72 into Member States law was foreseen in

March 2011. During drafting this report, the results and obligations which would be put on the

IM as CDSO were not clear.

For countries that considered that closed distribution systems is not applicable for railway market

the main arguments behind were that it: does not match with IM’s electric energy network and

refers to “geographically confined industrial, commercial or shared services site”

YES 33,33%

NO 11%

NA 56%

YES 50% NO

27,78%

NA 22,22%


PAGE 27 OF 42

4.3.9 GENERAL COMMENTS

Summarising received answers we would like to draw attention to some aspects:

There are legal uncertainties in adoption of Third Party Access for traction current:

European legal situation – some Member States consider that traction current supply is

out of the scope of energy directive (see clause 4.3.1); however the Energy Directive

2009/72 is still in process of implementation by Member States;

existing legal national environment referring to traction current supply (IM – only

supplier);

metrological cross– acceptance unclear;

application of energy directives to traction current and role of IM in energy market

according to those directives – particularly unclear implementation of CDSO;

overlapping of directives covering activities and regulation of energy and railway

sectors.

Railway sector is now not technically ready to charge for the traction energy consumption basing

on the on – board meters base because of:

relatively small number of vehicles are equipped with meters used for invoicing;

relevant standard and TSI referring on– board installations are still pending;

only few IMs have settlement system enabling use of on– board data for invoicing;

need of data exchange harmonisation and acceptance between RU/IM, IM/IM etc.


PAGE 28 OF 42

5. TRACTION CURRENT SUPPLY

The issue of the traction current supply crosses the border between two sectors, railway and

energy.

In majority of countries, the supply of RUs with traction current usually was a duty of IM (or

dedicated railway company), and stayed inside the railway scope. However it should be noted

that there are differences, which can be derived from the particular implementation of European

railway and energy packages into national law.

With the opening of energy market and common implementation of the rule that the customer,

using any grid, has access to any supplier, the approach in the railway field is also changing.

This report does not question the applicability of TPA in traction current supply.

The following clauses describe the general processes but not taking into account particular

national solutions.

5.1 TPA NOT YET IMPLEMENTED (SCENARIO 0)

This is a standard current approach – reflecting existing technical and (in some countries) legal

situation. Energy and railway market are clearly separated – from energy market point of view

IM is considered as the final customer.

RU´s are not able to apply TPA and have to buy their traction energy at the IM and follow the

predefined framework. When the IM is the only provider of traction current to the RU, the RU is

protected because this activity is regulated under directive 2001/14.

IM owns the connections to the public grid (TSO or DSO). The IM can freely choose its

electricity supplier (direct contract or via a power exchange) on the energy market with fully

implemented TPA rule. The IM buys all the electricity delivered to Contact Lines (its own

losses, but also the consumptions for all the RU´s).

The energy consumption at the substations of the IM is measured by the TSO or DSO (or a party

fulfilling this role on request of these public grid operators) with application of meters fully

accepted on the energy market. Later on this energy is attributed to RU depending on:

a) If there is no meter on– board (or is failed)

IM estimates the consumption of each RU. In most countries this is based on traffic

category (freight, local passengers, intercity, high speed …), ton– km, km, temperature,

etc.

b) If there is meter on– board

IM receives energy data coming from the on– board energy meters. This might be

directly or via an intermediate server of the RU. It is the IM who is responsible for

checking the quality of the metered data and the meter reading process. He also

validates the energy data.

IM normally defines the framework regarding the additional service – traction current – inside

the Network Statement. The regulator of the railway market is competent to check this

framework. This framework might be a cost splitting model or some published tariffs.


PAGE 29 OF 42

5.2 IMPLEMENTATION OF THIRD PARTY ACCESS FOR TRACTION

CURRENT

In this case the RU should be recognized by the energy market as an eligible customer. As

a consequence the IM for this RU should play the role of grid owner/manager – the real legal

status of IM depends on which of the following scenarios is applied.

The scenarios given below are conceptual scenarios to illustrate the provision of TPA:

- one using existing energy market directives;

- a second using the existing railway directives.

These hypothetical scenarios have been developed to explore the legal aspects, conditions and

consequences of introducing TPA for RU´s. Consequently these scenarios are not intended to be

considered as a practical implementation of TPA.

5.2.1 SCENARIO 1: ENERGY DIRECTIVE.

In this scenario the energy directive applies to the provision of traction current for the purpose of

ensuring TPA for RU.

In addition this will also allow suppliers’ access to eligible customers such as RU´s.

Legal aspects

According to energy directive definitions, IM should be considered as DSO for RUs

which want to apply TPA, with all consequences and obligations set by the European

law and its transposition into national law;

If the IM supplies traction current to RU´s, IM will also be considered as

a wholesale customer;

In addition IM will also be considered as a final customer for his own consumption;

Railway traction current supply has to comply with rules of the energy market;

Energy market has to accept and adapt to special features like: mobile customers

changing distribution zones, international traffic, mutual recognition of metrological

acceptance for on– board metering etc.

If TPA is applied according to energy directive, this directive also covers the railway

infrastructure.

Conditions:

a) RU (applying TPA)

Energy measurement Traction current energy on – board measurement should be accepted in the energy

market.

Data transfer Data transfer from on – board measurement system, their acceptance, validation and

availability should be done according to the energy market rules.

b) RU (not applying TPA)

The arrangements in clause 5.1 continue to apply.

c) IM

Having a Settlement system, accepted by the energy market and being able to:

- handle and exchange the data with energy market according to its rules;


PAGE 30 OF 42

- manage and verify all data (IT software/ hardware to manage all data) coming from

meters from the primary side of substations, traction current energy on– board

measurement, any other energy consumed from traction current installations for other

than traction purposes;

- take into account the energy (calculated on the base of estimated methods) used by

the vehicles not equipped with on– board meters;

- take into account losses in the installations;

- prepare invoices to those RUs who are not applying TPA (IM is the supplier);

- prepare invoices (use of grid charge, possible balancing of energy, metering costs) to

those RUs who are applying TPA (IM is not the supplier but the grid operator);

- prepare invoices for suppliers or RU’s relating to charges for transporting energy via

the IM’s Distribution System;

- exchange data between IM/IM;

- exchange data between IM/RU (according to energy market if RU applies TPA).

Having a system to exchange specific information with the energy market (e.g. in

case of the change of the supplier or the change of consumption profiles)

Having additional qualified staff to deal with energy matters to be active on the

energy market:

- trading energy (acting as a supplier of energy to those end customers connected to

the grid of IM);

- verification and handling the data and to transmit these data to all parties involved;

- development of estimation methods when necessary.

Consequences

Benefits

Rules of TPA as implemented in the energy market are legally clear with clear

obligations/rights for various actors (e.g. TSO, DSO, supplier, customer, Member State,

energy market regulator etc.);

RU has similar legal rights to other final customers in the energy market;

Additional business opportunities for IM in another market (apart from railway), unless

IM is designated as a CDSO.

Drawbacks

Energy directive and existing national regulations and rules do not readily accommodate

certain rail sector features e.g. currently unable to accommodate the mobile consumer

concept;

Problems in harmonisation rules in case of international traffic – energy market is

developed on national level;

Energy market requests energy meters on all connections of end users to the grid of a

DSO;

Rail sector only has modest levels of on– board metering at present;

Risk regarding the acceptance of technical solutions, developed specifically for the

railway market, in the energy market like on– board energy measurement system, rail

settlement system etc.;

Problems with splitting responsibilities and obligations between railway and energy

directives and regulatory arrangements e.g. implementing the railway directives to the

electrical supply equipment and energy directives to the traction current;


PAGE 31 OF 42

Additional burdens (and extra costs) on IM to fulfil the DSO and supplier requirements

according to energy market on European and national level (like e.g. licence

requirement in some countries);

5.2.2 SCENARIO 2: RAILWAY DIRECTIVE.

In this scenario the railway directive applies to the provision of traction current for RU.

Legal aspects

Application of art. 5.1 and 5.2 of dir. 2001/14

Scope of energy subsystem according to interoperability directive (2008/57)

Conditions

a) RU (applying TPA)

Energy measurement system (EMS) EMS as specified in LOC & PAS TSI (or in national laws), and metrologically tested

according to national calibration law.

Data transfer Data transfer between vehicle and data collecting system.

b) RU (not applying TPA)

The arrangements in clause 5.1 continue to apply.

c) IM

Having a Settlement system, being able to:


- manage and verify all data (IT software/ hardware to manage all data) coming from

the meters from the primary side of substations, traction current energy on– board

measurement, any other energy consumed from traction current installations for other

than traction purposes;




- prepare invoices to those RUs who are not applying TPA (IM is the supplier)


those RUs who are applying TPA;

- exchange data between IM/RUs and IM/IM (e.g. according with UIC leaflet 930) and

between IM / energy market according to its rules.

Consequences

Benefits

Avoidance of excessive burdens in relation to application of the energy market directive

within the railway sector;

More freedom within TPA application for taking into account specific features of

railway field (e.g. mobile customers);


PAGE 32 OF 42

Opportunity to reach clear separation between railway and energy market and between

railway and energy market regulator responsibilities;

Easier harmonisation of rules for international traffic on the base of railway

interoperability directive;

Less additional qualified staff needed to be able to implement TPA;

In future, opportunity to improve rights of RU regarding energy market aspects inside

the railway regulation and under supervision of railway regulator.

Drawbacks

Weaknesses in the legal status and regulation of TPA according to railway market

directive (RU rights and protection are very limited in relation to traction current

supply);

No clear role of IM according to energy market directive in facilitating TPA;

Risk of non – acceptance of data from RUs having the role as end customers within the

energy market.

5.2.3 ADDITIONAL COMMENTS TO BOTH SCENARIOS

Each scenario requires adaptation of existing energy and railway (European and

national) laws to fulfil TPA within the railway sector because of special features

e.g. mobile customers, international traffic;

Existing legal frameworks in some countries do not allow the supply traction current

from sources other than IM;

Existing European legal framework does not safeguard vulnerable RU´s (small RU´s are

not guaranteed their supply at reasonable cost);

Additional burdens on IMs (and associated costs) can endangered the competiveness of

the railway market;

Problem of metrological cross acceptance of on – board metering, particularly for

international traffic exists for both scenarios. Inclusion of EMS in the revised

Metrological Instrument Directive has been proposed, but the outcome is not yet

known;

According to answers from the questionnaire, the railway sector is not technically ready

to implement TPA, e.g. most trains are still unmetered.

For the foreseeable future metered and unmetered trains will need to be accommodated;

Different implementation of TPA may become a hindrance in the international traffic;


PAGE 33 OF 42

6. FUNCTIONAL REQUIREMENTS OF THE SETTLEMENT

SYSTEM

The settlement system, which must be introduced by IM, should collect data (i) from vehicles’

EMS, (ii) data (energy imported/exported) from each meter on the connection point in the

substations, (iii) meters measuring non – traction loads using the traction current distribution

system.

The settlement system must be able to:


- manage and verify all data.




- prepare invoices to those RUs who are not applying TPA (IM is the supplier);


those RUs who are applying TPA;

- prepare invoices for suppliers or RU’s relating to charges for transporting energy via

the IM’s Distribution System;

- exchange data between IM/IM;

- exchange data between IM/RU.

In relation to data coming from on board EMS (i), the settlement system should consist of the

following three processes:

1- Data collecting from on board measurement systems (energy consumed and regenerated)

2- Exchange of data with other settlement systems;

3- Attributing energy consumptions to the consumers.

It has also to fulfil the energy market requirements for:

content of data;

exchange format;

time limit for data access for all partners being involved in the process of energy

delivery.

The figure below illustrates the data flow from on board energy measurement system to and

through settlement system.


PAGE 34 OF 42

Requirements for EMS are specified in the CR LOC&PAS TSI. The detailed requirements for

data exchange should be further specified within the development of the requirements of the

settlement system.

Given below is an indication of the current state of standardisation which could be used as a

basis for future development.

1. Interface from on – board data handler to on ground Data Collecting

- General requirements are defined in EN.

2. Data Collecting

- EN has some essential requirements regarding data security and basic functionalities that

should be implemented.

- UIC leaflet 930 also has some essential requirements, e.g. regarding pre – validation of the

collected data.

- UIC leaflet 930 appoints the IM as the responsible party1 for the data.

- UIC leaflet 930 gives the RU the right of access to this data.

3. Exchange of data between IM´s.

- UIC leaflet 930 defines a protocol for these interfaces.

- UIC leaflet 930 describes the tasks to be fulfilled (e.g. validation of location data and

splitting consumptions towards the networks of different IM´s).

4. Attributing energy consumptions.

- Supporting document 2 to UIC leaflet 930 describes the information needed to be able to

make a correct validation or estimation for unmetered trains, and gives recommendations

for estimation systems.

- Supporting document 3 to UIC leaflet 930 describes the right access of RU to his

consumption data (validated data coming from energy meter or estimated data).

- Exchange of data between IM and energy market is defined at the national level.

1 Data may be collected by other parties, but IM remains responsible for data security.


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7. EXCHANGE OF DATA BETWEEN DIFFERENT ACTORS AND

EXISTING AGREEMENTS OF THE INDUSTRY

This chapter describes the general exchange of information between actors involved in traction

current supply.

7.1 DATA EXCHANGE BETWEEN DIFFERENT ACTORS

7.1.1 INTRODUCTION

On board equipment of trains must fulfil other sets of requirements defined in the railway field

different than standard industrial meters. Railway sector is developing procedures to exchange

data of mobile end customers on an international basis.

Track access conditions and the minimum service package including the access to railway

energy installations are offered by IM, published in the Network Statement and accepted by the

railway regulator. Traction current is considered as an additional service provided by IM.

In case of traction current consumption, the IM on whose network the consumption took place is

responsible for handling the data and to transmit this data to all parties involved.

7.1.2 PUBLIC GRID CONNECTION

The IM has the access points to the public grid (DSO or TSO). He is responsible for all the

necessary contracts with these operators of public grids and transmitting the necessary data to the

public grid operators.

7.1.3 SUPPLIER

At present, if the IM sells energy to one RU, he must offer this service to all RUs. In this case,

the RU has the right to choose the IM as supplier. The IM has different options to provide

himself of this energy:

- buy it on the power exchange;

- buy it from a trader or a supplier;

- produce the energy itself;

- import the energy from another country.

In any case, the IM is responsible for sending the necessary information in accordance with the

national energy market rules. In some countries the supply information must be sent to the

electricity regulator.

7.1.4 BALANCING

Balancing is an important process in energy data exchange.

As electricity cannot be stored easily, the injection of energy must at all the time be the same as

the off – take. This obligation must be fulfilled for each balancing zone.

In general, there is one balancing zone for each country. Nevertheless, it is possible that one

country is divided in more than one balancing zones. In most of the countries, the TSO is the

main responsible party to control and check the global balance of his zone.

He is also responsible for the settlement of imbalances. In some countries the Imbalance

Settlement Party can be another independent body.


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For each injection and off – take point in a certain balancing zone the grid operator, user or his

supplier must appoint a Balancing Responsible Party. In most of the cases this will be the

producer or the supplier himself. The Balancing Responsible Party must keep the energy balance

for all his injections and off – take points for which he is responsible.

Nevertheless, there could be in imbalance for a certain time period. If he has a shortage of

energy, he gets automatically energy from the system. In this case the Imbalance Settlement

Party will send him a bill. If he has a surplus of energy, the system will absorb this. In most of

the time, he will be paid for this energy by the Imbalance Settlement Party.

The time period to control the imbalance can be different for each balancing zone. In most of the

balancing zones, a period of 15 minutes is taken.

The settlement can only be done if the Imbalance Settlement Party receives all the necessary

information from all the grid operators (TSO and DSO).

In the railway sector, the IM sends the information about the injection/off – take to each

Balancing Responsible Party active at the IM – grid for each time period.

In case of applying TPA in the railway sector the introduction of mobile access points needs

a change of the existing balancing rules.

7.1.5 DATA EXCHANGE

The IM has always to use national energy market rules for data exchange with energy market

actors. Currently there are no European standards used throughout Europe for this type of

information. Also the part data exchange in the new grid codes (under development) will not

result in a European data exchange format for this data flow.

Other requirements can also be different:

- time period to be used for time series;

- deadline for transmitting time series for previous month;

- methods for corrections;

- conditions regarding minimal quality level of energy meters;

- etc.

Within the railway sector, for international traffic, data exchange between IM/IM and between

IM/RU for billing and settlement purposes, are specified in UIC leaflet 930. This allows the

consumption to be correctly accounted for within each MS.

7.1.6 RECOGNITION OF DATA FROM ON BOARD MEASUREMENT

EQUIPMENT

EMS as a part of the RST subsystem has to be assessed and certified according to requirements

set in CR LOC&PAS TSI by application of procedure for establishing the ‘EC’ declaration of

verification.

Additionally, sensors and energy meter have to be tested by a metrological laboratory in the MS.

Following issues should be addressed to eliminate barriers in the international traffic:

mutual recognition of the metrological assessment among MS;

cross acceptance of the re – verification framework. (including frequency, responsible

bodies, etc)


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8. ECONOMIC EVALUATION

Traction energy represents 5 – 10% of total cost within RU. In absolute values, the total amount

of annual traction energy cost within Europe lies between 5 – 10 G€.

The share of traction energy costs in relation to total costs of RU is increasing due to the

tendency of an increase of electricity unit price over the last years.

TPA is technically feasible with the use of on – board meters, although a legal framework has

to be further developed to apply TPA in the traction energy market. In this legal framework,

RUs not choosing to apply TPA, must get traction energy supplied at reasonable cost and

overheads in order not to create barriers for these RUs (in particular small RUs with limited

means to act on the energy market).

It is very unlikely that suppliers and other parties in the electricity market (e.g. party responsible

for settling the imbalance on the grid) will accept big end consumers not using energy meters.

This assumption must be evaluated with the stakeholders of the energy market (DG ENER).

In scenarios 1 and 2, the overall increase in costs of metering and settlement to support TPA

based on one case study is estimated in average at 2.3 % of total traction energy costs (with

current traction energy prices) in comparison with scenario 0. However this percentage will vary

substantially between Member States, depending upon national requirements. The choice to

apply TPA or not would be made by the individual RUs by evaluating their balance between

costs and benefits.

Large investment costs may be necessary for the IM in its role as Distribution System Operator

according to the energy market directive (scenario 1). These costs could vary by two orders of

magnitude, according to national legislations and circumstances. Costs could then be recovered,

at least partly, by new users (other than RUs) getting their energy supply from the railway

electricity grid owned by the IMs. But increased charges for existing users (RUs) may result if

income from new users does not cover the IM’s additional costs. Therefore, the business case at

national level must consider to what extend the IM has to fulfil the obligations of DSO

(subsidiarity principle).

Full Impact Assessment is attached in Annex 2.


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9. CONCLUSIONS This report has been prepared in accordance with the study mandate, and is therefore based on

the understanding that the Commission intends TPA to be implemented within the rail sector and

to traction current in particular. Therefore it does not seek to quantify the benefits of TPA.

In conducting this study, following key issues have been identified:

- with regard to traction current there is an overlapping of railways and energy sector

directives;

- the two scenarios demonstrate that it is not possible to provide TPA at RU level by

simple application of energy directive or railway directive;

- within the rail sector currently the IM is usually a supplier to RUs and most vehicles are

unmetered;

- at present much of the European rail sector is not yet technically ready to implement

TPA in the area of traction current. The technical constraints include factors such as the

availability and deployment of suitable on-board metering and associated ground based

settlement systems;

- a transition period will be necessary to enable TPA within the rail sector which will

allow the necessary legal, technical and commercial changes to be undertaken;

- in scenarios 1 and 2, the overall increase in costs of metering and settlement to support

TPA based on one case study is estimated in average at 2.3 % of total traction energy

costs (with current traction energy prices) in comparison with scenario 0. However this

percentage will vary substantially between Member States, depending upon national

requirements. The choice to apply TPA or not would be made by the individual RUs by

evaluating their balance between costs and benefits;

- future implementation of TPA should be done in such a way that it does not conflict with

the Commission objectives to ensure the rail sector becomes more competitive.

Adjustment to the existing legal framework is likely to be necessary to achieve this;

- there is currently a divergence between Member States in application of the energy

directive to the railway sector and particularly in traction current;

- if guidance is not available, the transposition of the energy directive within Member

States may be suboptimal for the railway sector and adversely impact the domestic and

international railway passenger and freight business.

In light of the above, there is a need to address these issues in order to progress towards a more

competitive and liberalised railway market.


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9.1 OPPORTUNITY AND CONSEQUENCES TO INCLUDE REQUIREMENTS FROM

SETTLEMENT SYSTEM IN ENE TSI

9.1.1 INTRODUCTION

How the legal framework and interactions between railway and energy sectors are developed

will influence how and where the settlement system requirements are best addressed. For

example, if the energy directive were to be used as the main legal basis for introducing TPA

within the railway sector, settlement system requirements would be defined within this

framework and there will be no need to include requirements within TSI.

This decision has a fundamental impact on further activity.

Alternatively, if the settlement system was to be included in the ENE TSI, then the scope and

time schedule would be affected. Also it would have an impact on the timeframe of other

structural TSI´s, covering Infrastructure and Rolling Stock subsystems, with which the Energy

TSI has an interface.

9.1.2 TSI – FUNCTIONAL VERSUS STRUCTURAL APPROACH

The Energy TSI in general deals with energy subsystem which is considered as one of structural

subsystems. It sets out requirements for:

- traction current supply fixed installations and its impact on rolling stock;

- OCL to interact properly with pantograph profiles defined in TSIs for rolling stock.

All those requirements are ‘line’ related – it means that they refer to installations which are over

and close to the track (OCL with masts) or on track side (substations) but strictly connected with

particular railway line.

The TSI with its assessment process, involvement of NoBo, applied modules, can be

implemented together with ‘line construction or improvement’ in the procedure for ‘placing in

service’.

The traction current settlement system is independent of any fixed energy subsystem installations

e.g. OCL or substations. Its “infrastructure part” should be understood as the software and

hardware that is needed to allocate data between actors in the relevant railway and energy

market. It is not related to the process of ‘construction new, upgrading or renewal’ of the

subsystem and could be placed anywhere (even outside EU) with the application of new

technologies.

The conclusions from the 15th

meeting of CSG (Conformity Survey Group) on 6 of October

2010 with NB Rail regarding traction current settlement system are given below:

The track – side equipment and the transmission of data will cover operational issues

and the requirements will be functional. Therefore track – side equipment is not in the

scope of NoBos activities which may asses products with clearly defined technical

parameters.

It is preferable to specify traction current settlement system in a specific legal document

with guidelines. Otherwise if specified in an existing TSI there will be a risk the subject

to be bulked together with other important issues and not to be paid sufficient attention.

Taking into account the suggestions of CSG group, in case of the settlement system only

functional requirements can be set. Following the example of functional TSIs we believe it

would be necessary to develop a separate document devoted to this system. As a consequence we

would achieve a clear split between:


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- structural (in existing Energy TSI – related to current collector/contact line interaction and

fixed installations) and functional approach;

- requirements assessed and not assessed by NoBos;

- different implementation scenarios.

9.2 RAILWAY – ENERGY MARKETS INTERFACE

The principal issue is the fact that the main recipient of the consumption data is the energy

market. As a consequence the data should be delivered to and accepted by this market – fulfilling

the existing requirements and legal obligations for this sector.

To harmonise them and to clearly define the interface between railway and energy market can be

a difficult task. It is very unlikely that the railway sector will be able to force a standardisation on

these topics in the energy market.

To solve it, this should be done with close collaboration with experts from energy market.

9.3 IMPLEMENTATION OF TPA

The idea of Third Party Access derives from the competition law, giving the right of

free access to the open market by both: the service provider and the customer.

The main business in the railway market is to transport passengers and freight using the

railway infrastructure. RU´s have free access to railway infrastructure and provide

services to passengers and freight customers in accordance with relevant European and

national law (implementation of railway packages) and railway market regulators.

Traction current is one of the sources of energy to drive a train. In general it is

generated/converted from 3~50 Hz public electric system and supplied, primarily for

this purpose, through installations – substations, feeders, contact line – which are part of

the railway infrastructure, usually owned/managed by IM.

Due to that the traction current is delivered to mobile objects (i.e. trains) its

requirements are different from those present in the public transmission/distribution

system, supplying fixed installations.

RU must have a non – discriminatory access to traction current installations (art.5.1

Directive 2001/14).

To give possibility for RU to be supplied with traction current, the Directive 2001/14 (it

is also present in the recast) indicates it as an additional service (art.5.2). If this

additional service is offered by the IM it must be delivered to any RU upon request, but

this Directive does not oblige the IM to be a default supplier.

Current role of the IM on the energy market depends on:

- implementation of the European railway package into national law. For example –

it is possible that the incumbent RU (with or without other RUs) buys energy for

its/their own purposes on the energy market;

- its involvement in the energy market and the national implementation of energy

market directives in the railway field.

After analyses of the questionnaire answers, the railway sector is now (with few

exemptions) not yet ready to implement TPA in traction current supply.

It is related to:


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- legal framework – which directive – energy or railway – is used to introduce TPA,

current legal national framework, metrological cross– acceptance, clear role for

IM in this process, adaption of energy market rules to accept data from rail sector

which includes features such as mobile consumers etc.;

- technical equipment – lack of suitable on – board meters, lack of implemented

settlement systems for collecting and distributing the consumption data, etc.;

To allow RU the free traction current supplier choice (under TPA), following basic

requirements should be fulfilled:

- Vehicle should be equipped with a suitable on – board energy measuring system

(EMS) e.g. according to TSI;

- IM must have implemented the settlement system;

- Access, energy transportation rules and tariffs to railway traction current

installation should be known;

- IM should be recognized as an actor on the energy market.

According to the answers to the questionnaire, one country claims that TPA is currently

implemented without the need for on board metering. However we envisage on board

metering will be required for TPA in the future for RUs to be billed based on the

measured real consumption.

In any case, the introduction of TPA rule in the traction current requires relevant

adaptation of railway and energy laws. It should also take into account both TSI and non

TSI conform systems. In order not to create any obstacles for international traffic (and

interoperability) those changes should be done on the European and MS level.

The consequences of implementation of TPA in the traction current on the core railway

business should be analysed in detail. Particularly in terms of legal obligations,

additional costs (both for RU and IM) which later on would be transferred to passengers

and freight customers. The analysis should also consider how the energy market will

function when factors within the rail sector outside of RU control can affect the load

profile.

Some Member States consider that in the implementation of Energy Directive 2009/72,

the IMs distribution systems might also be regarded as a closed distribution system,

but the resulting obligations on IM are not yet clear.

9.3.1 PROPOSAL FOR FURTHER ACTIONS TO BE UNDERTAKEN:

Adapt the Railway Directive 2001/14 to include provisions to enable TPA to be applied

in the railway sector and adjust the energy market directive accordingly.

Clarify the interface between the energy directive and adapted railway directive.

Develop safeguard to ensure traction current supply to those RUs not wishing to adopt

TPA.

Clarify regulatory arrangements for traction current.

Develop settlement system requirements under the railway directive.

Resolve metrological aspects of cross acceptance of on board metering regarding

placing on the market and continued operation.

Develop appropriate transition arrangements.


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10. LIST OF ANNEXES

1. QUESTIONNAIRE TO NSAs, REPRESENTATIVE ORGANISATIONS

2. IMPACT ASSESSMENT REPORT

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