Market monitoring

The Third Energy Package tasks the Agency with monitoring the internal markets for electricity and gas. To this purpose, the Agency prepares an annual market monitoring report in close cooperation with the European Commission, National Regulatory Authorities, and other relevant organisations. The legal basis for the Agency’s market monitoring duties is in Article 11 of Regulation (EC) No. 713/2009.   
   
Moreover, the objective of the Agency’s market monitoring activities is to explain how energy markets can perform more efficiently, thus making energy more affordable to the benefit of European energy consumers. For example, if barriers to market integration of the internal electricity and gas markets are removed, then the level of competition should improve. As a consequence, the Agency’s market monitoring report aims to compare retail market competition in different markets across the EU, with a view to identifying instances of best practice which improve market performance.  
   

The Agency’s report assesses the internal markets for energy and, in particular, focuses on retail prices (including compliance with consumer rights as mentioned in the Third Package), network access (including grid access for renewable energy sources), and on any barriers to the Internal Energy Market (IEM).​ The Market Monitoring report consists of 4 parts: electricity wholesale, Gas wholesale, electricity and gas retail and Customer Protection.    

Methodology

In 2011 a dedicated market monitoring team commenced the work on the first market monitoring report. Starting from the relevant legislation, they developed a methodology to assess retail markets, network access and wholesale market integration to detect market barriers. From this a set of indicators emerged for each of these three areas, which have been debated with national regulators, the European Commission and other relevant stakeholders.

The same methodology was applied for the second market monitoring report and the third market monitoring report covering respectively 2012 and 2013. The fourth market monitoring report (covering 2014) builds on the methodology of the third edition and extents the methodology in retail markets by applying the so-called ACER Retail Competition Index (ARCI).  

The Market Monitoring team draws from public and non-public data sources to fill the selected indicators. For instance, the Agency sources data from national regulators and benefits from work executed by national regulators through CEER. As regards to public sources the Agency collects for example data from the ENTSO’s platforms and the Energy Markets Observation System (EMOS).  

 

Consultancy studies 

1. In 2015, the Agency commissioned a consultancy study to present an overview of the current forward electricity markets and ways to monitor the functioning and efficiency of these markets. It also includes proposals for monitoring the effect of the Forward Capacity Allocation Guideline.   

The final report and the presentation of the study are accessible below:   

  • ECA study on European Electricity Forward Markets and Hedging Products – State of Play and Elements for Monitoring; and
  • Power point presentation of the study.

2.  In 2015, the Agency also commissioned a consultancy study to develop a methodology for a composite index, the ‘ACER Retail Competition Index (ARCI)’. The methodology uses a representative selection of the most important indicators presented and analysed in the retail chapter of the MMR. The index allows the results of the individual indicators to be summarised in a more comprehensive way and, on this basis, provides an indication of the relative performance of competition in MS’s retail markets. The final report with the methodology is available at:  

 

Ranking the Competitiveness of Retail Electricity and Gas Markets at the National Level in Member States of the European Union and in Norway

3. Within the context of Regulation (EC) No 715/2009 and Directive 73/2009, Network Codes (NCs) and Guidelines (GLs) were created. These regulations also established ACER’s market monitoring responsibilities in terms of implementation and economic effects of NCs on market performance. In order to prepare and implement a monitoring framework for gas network codes, the Agency commissioned a consultancy study in 2015 for a methodology to evaluate the impact of the gas Network Codes and Guidelines in terms of implementation and market effects. The study went through market consultation between 12 June and 17 July 2015.   

The final report and the presentation of the study are accessible below:   

   
   
   
   
   

​   

​ 

​