On 14th August 2015, the Commission Regulation (EU) No 2015/1222 of 24 July 2015 establishing a Guideline on Capacity Allocation and Congestion Management (hereinafter “CACM Regulation”) came into force. The latter set the rules for the functioning of the cross border day-ahead and intraday market in EU and made the market coupling legally binding across the EU.
On 21st December 2015, BSP has been designated by the Energy Agency in accordance with article 4 of the CACM Regulation as a Nominated Electricity Market Operator (hereinafter »NEMO«) for a period of 4 years, in order to perform the single day-ahead and intraday coupling within the territory of the Republic of Slovenia.
Europe's electricity spot exchanges that have been designated as NEMOs have subsequently established the »NEMO Committee« to take forward their joint responsibility to further develop and operate the European single day-ahead and intraday market coupling as required under the CACM Regulation. The NEMO Committee has been established via a voluntary cooperation agreement between the NEMOs as a way to enable the timely and efficient management of their joint responsibilities under CACM.
On 14th April 2016, the NEMO Committee, representing all NEMOs from across Europe, submitted to National Regulatory Authorities (NRAs) and ACER the plan that specifies how to jointly set up and perform the Market Coupling Operator (MCO) function (the “MCO Plan”). The MCO Plan details the governance and cooperation rules among the NEMOs and outlines the relationship with third parties. The MCO Plan has been approved by all NRAs on 26th June 2017.
Furthermore, on 14th February 2017 the NEMOs, where relevant in cooperation with the TSOs, submitted to national regulatory authorities the following proposals for terms and conditions or methodologies:
- a proposal for the price coupling algorithm and for the continuous trading matching algorithm (Algorithm proposal), incorporating a common set of requirements for the price coupling algorithm (DA Algorithm) and the continuous trading matching algorithm (ID Algorithm);
- a proposal concerning products that can be taken into account in the single day-ahead and single intraday couplings;
- a proposal for a back-up methodology to comply with the obligations set out in Article 39 and 52 of CACM;
- a proposal on harmonized maximum and minimum clearing prices to be applied in all bidding zones which participate in single day-ahead and single intraday couplings.
This follows a public consultation held in accordance with Article 9 of CACM which ran from 3rd November 2016 to 2nd December 2016. A consultation workshop for stakeholders took place on 14th November, in cooperation with the TSOs. The consultation feedback received from stakeholders has been duly considered.
- Euphemia algorithm public description
- CACM Regulation
- Presentation NEMO Committee
- Presentation ENTSO-E
- Workshop Q&A
- Stakeholders’ responses
- Justification document