Curtailment, price thresholds and decoupling
Curtailment (maximum/minimum prices reached)
Curtailment of bids in the day-ahead market will occur where the aggregated supply and demand curves within a price area do not intersect. This may be the case in an area where there is significant over supply or under supply (this kind of situation is rather rare).
In order to settle the price at balance between demand and supply in an area with over supply, it is necessary to curtail sales bids so that the supply curve intersects with the demand curve at minimum price – currently EUR -500.
In order to settle the price at balance between demand and supply in an area with under supply it is necessary to curtail the purchase bids so that the demand curve intersects with the supply curve at maximum price – currently EUR 4000.
Total curtailment in a price area is divided among the affected members pro rata based on their wish to sell or buy at minimum or maximum price (respectively).
Price thresholds in GB for the Nord Pool N2EX auction
For the GB market there exist lower and upper price thresholds (from 14.09.2021 these are GBP -500 / +4000). If thresholds are exceeded it triggers a second auction with a 20-minute reopening of order submission for the GB market participants. Members will be informed about the new time for order submission.
Decoupling of market areas from the multi-regional coupling (MRC)
If for some reason any of the MRC areas is not able to be part of the multi-regional coupling process, a decoupling of that market area may take place. In case of a decoupling, auction results will be delayed, reopening of order submission will take place and affected capacities will no longer be included in the auction.