20.12.2021

ACER provides Recommendation on reasoned amendments to the Capacity Allocation and Congestion Management Regulation

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Congestion CACM

ACER provides Recommendation on reasoned amendments to the Capacity Allocation and Congestion Management Regulation

What is it about?

The EU Agency for the Cooperation of Energy Regulators (ACER) publishes today the Recommendation on the reasoned amendments to the Capacity Allocation and Congestion Management (CACM Regulation’).

The CACM Regulation provides binding rules for implementing and operating an EU-wide single market coupling and capacity calculation in the day-ahead and intraday timeframes.

The process

On 22 January 2020, ACER received a request by the European Commission to provide a recommendation on reasoned amendments to the CACM Regulation.

After the scoping and drafting phase followed by a public consultation, which ended in June 2021, ACER and national regulatory authorities have evaluated all inputs received and started a review process with transmission system operators (TSOs) and nominated electricity market operators (NEMOs) to finalise the Recommendation.

On 18 January 2022 ACER is organising a webinar to present the amendments and engage with stakeholders. Register here.

 What is the Recommendation about?

The Recommendation strives to improve the entire CACM Regulation as it proposes changes to a wide range of topics, including amendments to the Electricity Transmission System Operation Regulation (‘SO Regulation’). The figure shows an overview of the proposed amendments:

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Proposed amendments

ACER provides Recommendation on reasoned amendments to the Capacity Allocation and Congestion Management Regulation

 What are ACER’s recommendations?

   Market coupling governance and operations

ACER proposes amendments to the current market coupling governance set-up and assignment of responsibilities to make them fit for future challenges, by:

  • Introducing a joint decision making body for all TSOs and NEMOs and qualified majority voting for decisions on market coupling.

  • Establishing a European single legal entity to perform the market coupling operator’s tasks within five years after entry into force.

  • Establishing of a permanent forum to involve stakeholders and market participants in market operations.

  • The inclusion of intraday auctions as target model

  • Fostering competition between NEMOs and ensure shared order books in the intraday market until close to real time.

  • A new methodology developed by all NEMOs and TSOs on the publishing of information on the day-ahead and intraday coupling.

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ACER provides Recommendation on reasoned amendments to the Capacity Allocation and Congestion Management Regulation

Capacity calculation and bidding zone review

ACER recommends to:

  • Further specify the determination of capacity calculation regions to deliver maximal cross-zonal capacity (to the physical extent possible).

  • Provide more details and regular reviews for capacity calculation methodologies to facilitate the achievement of the 70% target.

  • Align the capacity calculation processes and bidding zone review with the Electricity Regulation.

  • Improve efficiency by reformulating the criteria used in the bidding zone review.

SO Regulation

Various amendments to the SO Regulation stem out directly from the revisions of the CACM Regulation. In particular:

  • Specific content moved from the CACM Regulation to the SO Regulation will benefit of synergies in the already existing and corresponding framework of the SO Regulation.

  • Amendments mainly relate to data exchange, the common grid model, the operational security analysis and scheduling.

Would you like to find out more?

Read more on the recommendation:

All ACER recommendations can be accessed here.