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The CACM Regulation sets out specific obligations for NEMOs, TSOs, regulatory authorities and the Agency regarding the development and approval of different terms and conditions or methodologies, which are considered as detailed rules for the operation of Internal Electricity Market in the day-ahead and intraday timeframe. Article 9 of CACM Regulation describes the process of adoption of these terms and conditions or methodologies. In accordance with Article 9(6) of CACM Regulation these terms and conditions or methodologies are divided into European, regional and national. They are developed either by TSOs or NEMOs and in specific cases the cooperation of both.

A proposal from NEMOs or TSOs should typically be consulted upon in accordance with Article 12 of CACM Regulation and submitted to the concerned regulatory authorities and to the Agency in accordance Article 9(9) of CACM Regulation. The proposal should contain a timescale for implementation and the expected impact on the objectives of the CACM Regulation (Article 3). The concerned regulatory authorities should take decisions concerning the proposed terms and conditions or methodologies within six months after the receipt of the proposal. Where the regulatory authorities are not able to approve the proposal, they can request an amendment, which gives the concerned NEMOs or TSOs two months for amending the proposal. Subsequently the regulatory authorities need to approve the amended proposal within two months after receiving the amended proposal. If the regulatory authorities are not able to reach an agreement or upon their joint request, the Agency becomes competent to adopt a decision on the proposal within six months from the referral.

To enable a regular review of the terms and conditions or methodologies, the TSOs or NEMOs responsible for developing these terms and conditions or methodologies may propose amendments to them and submit them for approval to regulatory authorities. The regulatory authorities may request amendments to those the terms and conditions or methodologies which have already been approved in the past.

For the designation of NEMOs and reviewing the existing bidding zone configuration, different rules and procedures apply and are described in more detail in pages Designation of NEMOs and Bidding zone review.

See the implementation table for more details on the current status of this topic.