Fostering the integration of the European internal electricity market
These Commission Regulations are binding rules coupling the national electricity markets and fostering their integration in the European internal electricity market. This should be achieved by an efficient use of the European electricity transmission system, while keeping an adequate level of security of supply and assuring the long-term operation and network development across the European Union.
Market codes aim at improving the market efficiency by promoting:
Allowing the most efficient use of infrastructure and resources available at European level
Creating hedging and new trading opportunities
Contributing to the creation of the European internal electricity market
Fairness and non-discrimination
In the access to cross-zonal capacity
Creating a level playing field among the parties involved
Facilitating the participation of demand response and renewable energy sources
Transparency and reliability of information
Following these objectives is beneficial for fostering competition, avoiding market distortions and entry barriers, therefore facilitating the formation of cost-reflective market prices and supporting the achievement of the European Union target for the penetration of renewable generation.
The Regulation on the internal market for electricity complemented with three Commission Regulations on market rules are forming the main legal framework for the establishment and functioning of the European internal electricity market. These three regulations are covering all the timeframes of the European internal electricity market:
Capacity Allocation and Congestion Management (CACM) Regulation 2015/1222, covering the day-ahead and intraday timeframe.
Forward Capacity Allocation (FCA) Regulation 2016/1719, covering the forward timeframe.
Electricity Balancing (EB) Regulation 2017/2195, covering the balancing timeframe.
These regulations foresee the establishment of more detailed rules and procedures called terms and conditions or methodologies, which need to be developed by Transmission System Operators (TSOs) or Nominated Electricity Market Operators (NEMOs) and approved by national regulatory authorities or ACER.
What's the role of ACER?
ACER has played a key role in developing these Regulations and will have a role in their future amendments.
For the terms and conditions or methodologies developed according to these regulations, ACER is competent to review and decide on them in case they are developed by all European TSOs or NEMOs or if the national regulatory authorities cannot agree on a regional level.
ACER can also consult TSOs, NEMOs and national regulatory authorities when terms and conditions or methodologies are developed or approved.