Commission Regulation (EU) 2015/1222 of 24 July 2015 establishing a Guideline on Capacity Allocation and Congestion Management - CACM (Regulation on market coupling), known also under the acronyms: the 'CACM Guideline' or the ‘CACM Regulation’, applies in the European Union as from 14 August 2015.

 


Initially, the CACM Regulation was envisaged to be adopted as a network code under Article 6 of Regulation (EC) No 714/2009), which, however, would require a sufficient level of technical and legal detail.

 

Given that fully harmonised procedures and timings with the said level of detail could not be achieved in the circumstances, ENTSO-E and the ACER proposed that many terms, conditions or methodologies jointly be developed by:

 

- Transmission System Operators (TSOs), and/or 

 

- Nominated Electricity Market Operators (NEMOs);

 

after the adoption of the CACM Regulation and jointly approved by the regulatory authorities.


As a general rule, the CACM Regulation, which implements Regulation (EC) No 714/2009, can amend only non-essential elements of Regulation (EC) No 14/2009 pursuant to Article 8(5) of that Regulation (principle underlined in the Decision of the Agency for the Cooperation of Energy Regulators No 06/2016 of 17 November 2016 on the electricity transmission system operators' proposal for the determination of the capacity calculation regions).

 

 

CACM Regulation objectives

 

 

Article 3 of the CACM Regulation defines the objectives of this important piece of the European energy market legislation.

 

According to this provision the CACM Regulation aims at:

 

(a) promoting effective competition in the generation, trading and supply of electricity;

 

(b) ensuring optimal use of the transmission infrastructure;

 

(c) ensuring operational security;

 

(d) optimising the calculation and allocation of cross-zonal capacity and providing non-discriminatory access thereto,

 

(e) ensuring fair and non-discriminatory treatment of market participants and:

 

- TSOs,

 

- NEMOs,

 

- Agency for the Cooperation of Energy Regulators (ACER) and other regulatory authorities;

 

(f) ensuring and enhancing the transparency and reliability of information;

 

(g) contributing to the efficient long-term operation and development of the electricity transmission system and electricity sector in the Union;

 

(h) respecting the need for a fair and orderly market and fair and orderly price formation;

 

(i) creating a level playing field for NEMOs.

 

Recital 27 to the CACM Regulation underlines, as the objective of the Regulation, the establishment of single day-ahead coupling (SDAC) and single intraday coupling, which "cannot be successfully achieved without a certain set of harmonised rules for capacity calculation, congestion management and trading of electricity."

 

Recitals 28 and 29 develop this thread accentuating, respectively, that "single day-ahead and intraday coupling should only be implemented stepwise", and that the single day-ahead and intraday coupling require the introduction of harmonised maximum and minimum clearing prices.

 

An important step for the realisation of the above objectives was the formal start of the Single Intraday Coupling (SIDC) on 12 June 2018.

 

 

Binding subsidiary instruments to be developed under the CACM Regulation

 

 

The CACM Regulation envisages a number of binding subsidiary instruments to be adopted.

 

According to the CACM Regulation, the adoption of such instruments is entrusted to the National Regulatory Authorities of the European Union Member States (NRAs). 

 

In the case of binding subsidiary instruments having a EU-wide scope of application, this requires NRAs to decide unanimously on the adoption of identical legal acts in all national legal systems within a six-month period, after which the responsibility is transferred to the ACER.

 

The CACM Regulation envisages, in particular, the following tasks to be implemented in the pan-European electricity market:

 

(a) determination of Capacity Calculation Regions (CCR) - Article 15(1),

 

(b) determination of Day-Ahead Firmness Deadline (DAFD) - Article 69,

 

(c) determination of the Intra-Day Cross-Zonal Gate Opening Time (IDCZGOT) - Article 59(1),

 

(d) determination of the Intra-Day Cross-Zonal Gate Closure Time (IDCZGCT) - Article 59(1),

 

(e) requirements for price coupling algorithm and requirements for continuous matching algorithm - Article 37(1),

 

(f) generation and load data provision - Article 16,

 

(g) the EU-wide Common Grid Model methodology - Article 17,

 

(h) congestion income distribution methodology - Article 73,

 

(i) monitoring activities of ENTSO-E - Article 82.

 

The European Network of Transmission System Operators for Electricity (ENTSO-E) Market Committee meetings are used to discuss the corresponding "all TSOs" decisions in the above fields.

 

 

Capacity calculation methods according to the CACM

 

 

The target model for capacity calculation as defned in the CACM Regulation specifies that TSOs need to apply a flow-based capacity calculation method.

 

The exception are cases where the electricity networks are not meshed and such a method would not add value compared to a coordinated NTC capacity calculation method

 

Both capacity calculation methods should be based on an EU-wide Common Grid Model and need to be applied in a coordinated way within CCRs (ACER/CEER Annual Report on the Results of Monitoring the Internal Electricity and Natural Gas Markets in 2014, November 2015, p. 153).

 

The overarching objective is to deliver an integrated EU internal electricity market.

 

Indispensable for this purpose are also the following processes supported by the CACM Regulation:

 

(a) full coordination and optimisation of capacity calculations performed by TSOs within regions,

 

(b) definition of appropriate bidding zones, including regular monitoring and reviewing of the efficiency of bidding zone configuration.

 

Important part of the CACM Regulation is the compensation regime for long-term transmission rights curtailed after the Day-Ahead Firmness Deadline.

 

 

 

 

 chronicle   Regulatory chronicle 

 

 

 

 

 

4 August 2020

 

CACM Cost Report of 2019 prepared by all NEMOs and all TSOs according to Article 80 of Commission Regulation (EU) 2015/1222 of 24 July 2015 establishing a guideline on capacity allocation and congestion management

 

1 July 2020

 

CACM Annual report 2019, NEMO Committee

 

August 2019

 

CACM Cost Report of 2018 prepared by all NEMOs and all TSOs according to Article 80 of Commission Regulation (EU) 2015/1222 of 24 July 2015 establishing a guideline on capacity allocation and congestion management

 

ENTSO-E Report on Capacity Calculation and Allocation 2019

 

30 January 2019

 

ACER Monitoring report on the implementation of the CACM Regulation and the FCA Regulation

 

 

 

 

 IMG 0744   Documentation

 

 

 

 

 

Commission Regulation (EU) 2015/1222 of 24 July 2015 establishing a Guideline on Capacity Allocation and Congestion Management - CACM (Regulation on market coupling)

 

CACM Cost Report of 2017

 

All NEMOs’ proposal for products that can be taken into account by NEMOs in intraday coupling process in accordance with Article53 of Commission Regulation (EU) 2015/1222 of 24 July 2015 establishing a guideline on capacity allocation and congestion management, 14 February 2017

 

All NEMOs’ proposal for products that can be taken into account by NEMOs in single day-ahead coupling process in accordance with Article 40 of Commission Regulation (EU) 2015/1222 of 24 July 2015 establishing a guideline on capacity allocation and congestion management, 14 February 2017

 

All NEMO’s proposal for harmonised maximum and minimum clearing prices for Single Day Ahead Coupling in accordance with Articles 41(1) of Commission Regulation (EU) 2015/1222 of July 2015 establishing a guideline on capacity allocation and congestion management, 14 February 2017

 

All NEMO’s proposal for harmonised maximum and minimum clearing prices for Single Intra Day Coupling in accordance with Article 54(2) of Commission Regulation (EU) 2015/1222 of July 2015 establishing a guideline on capacity allocation and congestion management, 14 February 2017

 

All TSOs' proposal for intraday cross-zonal gate opening and gate closure times in accordance with Article 59 of Commission Regulation (EU) 2015/1222 of 24 July 2015 establishing a guideline on capacity allocation and congestion management, 18 April 2016 – Draft for consultation

 

All TSOs' proposal for the day-ahead firmness deadline (DAFD) in accordance with Article 69 of the Commission Regulation (EU) 2015/1222 of 24 July 2015 establishing a guideline on capacity allocation and congestion management, 07 April 2016

 

Draft methodology for calculating Scheduled Exchanges resulting from single intraday coupling, 04.10.2016

 

Draft methodology for calculating Scheduled Exchanges resulting from single day-ahead coupling, 04.10.2016

 

Decision of the Agency for the Cooperation of Energy Regulators No 06/2016 of 17 November 2016 on the electricity transmission system operators' proposal for the determination of the capacity calculation regions

 

ACER/CEER Annual Report on the Results of Monitoring the Internal Electricity and Natural Gas Markets in 2014, November 2015, p. 153 

 

Joint ACER-CEER response to European Commission's Consultation on a new Energy Market Design of 07 October 2015 (p. 24) 

 

ENTSO-E draft Work Programme 2015 through December 2016 

 

 

 

 

 

 clip2  Links

 

 

 

ENTSO-E website on CACM Regulation