This is EU Regulation 2015/1222 establishing a guideline on Capacity Allocation and Congestion Management (CACM).

The CACM regulation is a key piece of legislation for the single market in electricity. It sets out minimum harmonised rules for the ultimate single day-ahead and intraday market coupling.

The purpose is to provide a clear legal framework for an efficient and modern capacity allocation and congestion management system, facilitating union-wide trade in electricity. This allowes more efficient use of the network and increases competition, for the benefit of consumers. 

CACM provides the legal basis for the designation of nominated electricity market operators (NEMOs), outlines their tasks associated with market coupling and provides a framework for their cooperation with TSOs.

MCO plan

All European National Regulatory Authorities (NRAs) have agreed to approve the all NEMO proposal for the Market Coupling Operator Plan (MCO Plan). The MCO Plan sets out how NEMOs shall set up and perform the MCO functions.

The MCO Plan was unanimously approved by all Regulatory Authorities on 26 June 2017.

CACM Methodologies

Under article 9 (6) of the CACM Regulation, NEMOs are obliged to propose to ACER certain terms and conditions or methodologies. The methodologies mentioned below have been approved by all regulatory authorities and have also been subject to public consultations in line with Article 12 of the CACM Regulation.

Harmonized max and min clearing prices

On 14 November 2017, ACER published its decisions 04/2017 and 05/2017 on the NEMOs’ proposals for harmonised maximum and minimum clearing prices to be applied in all bidding zones participating in single intraday coupling and single day-ahead coupling. 

In accordance with Article 41 (2) and 54 (2) of the CACM Regulation ACER set the maximum and minimum clearing price for single day-ahead coupling (SDAC) to 3,000 and -500 EUR/MWh respectively, and for the single intraday coupling (SIDC) to 9,999 and -9,999 EUR/MWh respectively.

In the event that the clearing price exceeds 60 percent of the harmonised maximum clearing price for SDAC, the latter shall be increased by 1,000 EUR/MWh the next day and shall be applied in bidding zones five weeks later.

Day-ahead and intraday products

The day-ahead products proposal for products that can be taken into account by NEMOs in single day-ahead coupling were approved by all NRAs on 24 January 2018, in accordance with Article 40 of the CACM Regulation.

On 30 January 2020, ACER approved with decision 05/2020 an updated Intraday Products Methodology which includes - in addition to products to be included in continuous trading - also products that can be taken into account by NEMOs in Day-ahead Auctions.

Back-up

The Back-up methodology, developed by NEMOs in cooperation with TSOs, for single day-ahead and intraday coupling was approved by all NRAs on 24 January 2018.

Algorithm

On 30 January 2020 with decision 4/2020, ACER adopted the updated version of the Algorithm Methodology which was first approved in July 2018.

The methodology for the price coupling algorithm, the continuous trading matching algorithm and the intraday auction algorithm incorporates also a set of requirements to, and methodologies for monitoring of, the algorithms.

The newest version of the Algorithm methodology includes in addition to the main document:

Annex 1: Common set of requirements for the price coupling algorithm
Annex 2: Common set of requirements for the continuous trading matching algorithm and the intraday auction algorithm.
Annex 3: Algorithm monitoring methodology for single day-ahead coupling
Annex 4: Algorithm monitoring methodology for single intraday coupling