Price Coupling of Regions (PCR) is the project of European Power Exchanges to develop a single price coupling solution to be used to calculate electricity prices across Europe respecting the capacity of the relevant network elements on a day-ahead basis. This is crucial in order to achieve the overall EU target of a harmonised European electricity market. The integrated European electricity market is expected to increase liquidity, efficiency and social welfare. PCR is open to other European power exchanges wishing to join.

What is PCR:

PCR is based on three main principles: a single algorithm, robust operation and individual power exchange accountability.

  1. 1. The common algorithm gives a fair and transparent determination of day-ahead electricity prices and a net position of a bidding area across Europe. The algorithm is developed respecting the specific features of the various power markets across Europe and the electricity network constrains. It optimises the overall welfare and increase transparency.
  2. 2. The PCR process is based on decentralised sharing of data, providing a robust and resilient operation.
  3. 3. The PCR Matcher and Broker service enables exchange of anonymised orders and electricity network constrains among the power exchanges to calculate bidding zone prices and other reference prices and net positions of all included bidding areas.


Project is currently being operated by seven Power Exchanges: EPEX SPOT, , GME, Nord Pool, OMIE, OPCOM, OTE and TGE; PCR is used to couple the following countries: Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Hungary, Italy, Latvia, Lithuania, Luxembourg, the Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden and UK.

The initiative started in 2009, followed by signing a formal PCR Cooperation Agreement and PCR Co-ownership Agreement in June 2012. After 3 years of development, on the 4th of February 2014, PCR assets were being used in Implicit Day-ahead Market Coupling on NW Region. In the next years their implementation was gradually expanded also to other european regions.

One of the key elements of PCR project is the development of a single price coupling algorithm, which adopts the name of EUPHEMIA (acronym of Pan-European Hybrid Electricity Market Integration Algorithm). It is used to calculate energy allocation, net positions and electricity prices across Europe, maximising the overall welfare and increasing the transparency of the computation of prices and power flows resulting in net positions.