S.2. Internal Energy Market

D.2.7. EU Network Codes

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ACER adopts Decision on methodology for market-coupling algorithms

Monday, July 30, 2018


At the end of July, ACER adopted a Decision amending the methodology for the development and maintenance of the price-coupling algorithm for day-ahead and intraday markets, proposed by all Nominated Electricity Market Operators (NEMOs). National Regulatory Authorities submitted the proposal to ACER after they failed to reach an agreement.

ACER amended the methodology in several instances, ruling that it was not fully compliant with Regulation 2015/1222 establishing a guideline on capacity allocation and congestion management (CACM) and that it failed to sufficiently describe the requirements and functionalities of the algorithms with regard to monitoring, transparency and the process for managing modification.

The amendments also: (i) clarify the management of algorithm performance with regard to products and requirements, as well as the concepts of economic welfare, scalability and repeatability; (ii) introduce shorter and more explicit deadlines for the development of the algorithms; (iii) set procedures requiring NEMOs to publish various reports and information and to keep the algorithm performance within the required standards; and (iv) alter management and decision making processes to ensure cooperation between NEMOs and transmission system operators for any future amendments to the algorithms.