Implementation of European regulations

Regulation no. 2015/2022 establishing a guideline on capacity allocation and congestion management (hereinafter referred to as "the CACM") is the first among network codes which entered into force on 14 August 2015. The code lays down the allocation and stipulation of cross-border transmission capacities (CBTC) one day ahead and during the day, and it represents the key document in the efforts for the formation of a common European electric power market.

When speaking about the allocation of CBTC we speak about unifying the rules on allocation, the introduction of advanced allocation mechanisms that base on the so-called Market Coupling. ELES has been actively collaborating in these processes for a couple of years and the benefits of these processes are indisputable for market stakeholders and end consumers. The most important processes are:

• more effective allocation of CBTC and better utilisation of transmission ways,
• greater liquidity of local markets and the formation of a transparent price signal,
• prevention of speculative trading (arbitration among markets),
• reduction of costs of entering wholesale market (as a result of unification of rules) and increase of competition in the local market.

This is also the area where the largest step ahead has been made in the past few years.

Within the scope of preparation for implementing CACM GL, numerous activities are taking place in two areas: within the ENTSO-E and on regional levels, where various project groups have been established.

Documents:

• Regulation establishing a guideline on capacity allocation and congestion management (CACM)

The Regulation establishing a guideline on forward capacity allocation (FCA) entered into force on 17 October 2016. The provisions of FCA establish a framework for the calculation and allocation of interconnection capacity, and for cross-border trading, in forward markets (i.e. timeframes longer than day-ahead).

Documents:

• Regulation establishing a guideline on forward capacity allocation (FCA)

The draft Regulation establishing a guideline on electricity balancing (EB) received a positive vote in comitology on 16 March 2017. The Balancing guideline sets down rules on the operation of balancing markets, i.e. those markets that Transmission System Operators (TSOs) use to procure energy and capacity to keep the system in balance in real time. The objectives of the guideline include increasing the opportunities for cross-border trading and the efficiency of balancing markets. 

• Electricity balancing guideline: COMMISSION REGULATION (EU) 2017/2195

Terms and conditions, Methodologies and Implementation frameworks as approved/adopted by the relevant regulatory authorities:

• Implementation framework for a European platform for the exchange of balancing energy from frequency restoration reserves with manual activation as adopted by ACER.
• Implementation framework for a European platform for the exchange of balancing energy from frequency restoration reserves with automatic activation as adopted by ACER.
• Methodology to determine prices for the balancing energy that results from the activation of balancing energy bids for the frequency restoration process as adopted by ACER.