Monitoring the Implementation of the Market Codes
What is it about?
The EU Agency for the Cooperation of Energy Regulators (ACER) and the European Network of Transmission System Operators for Electricity (ENTSO-E) are mandated to monitor the market rules’ implementation.
Specifically, ACER and ENTSO-E monitor:
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the effective implementation of the Regulations’ requirements and provisions by Transmission System Operators (TSOs) and Nominated Electricity Market Operators (NEMOs)
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the impact of the Regulations on the overall efficiency of the electricity markets.
As such, ACER and ENTSO-E issue different monitoring reports.
Legal basis:
Capacity Allocation and Congestion Management (CACM) Regulation - Article 82
Monitoring the Implementation of the Market Codes
ACER monitoring
ACER monitors the implementation of the market codes, as well as their impact at European level, and reports to the European Commission.
This facilitates market integration as well as non-discrimination, effective competition and the efficient functioning of the market.
ACER investigates also the performance of regional coordination centres and of market coupling operators, and assesses its effectiveness and efficiency.
Read more about the implementation and effect monitoring strategy of ACER.
Reports on the market codes’ implementation
ACER aims to issue biennial reports on the market codes’ implementation:
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CACM and FCA Regulation: The first general monitoring report on the implementation of the CACM Regulation and the FCA Regulation was issued in 2019.
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EB Regulation: As the implementation of the EB Regulation is still in a development stage and little effective implementation has taken place before 2019, ACER did not include any monitoring assessment of the EB Regulation in its first report.
ACER expects to publish the second general monitoring report in 2022.
Market Monitoring Report – Electricity Wholesale Volume
Although several provisions of the market codes have not been implemented yet, the ACER annual Market Monitoring Report analyses the effects of the early implementation activities of electricity market integration, such as:
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market coupling in the day-ahead and intraday timeframe
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introduction of flow-based capacity calculation
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existence and quality of hedging opportunities in forward markets at different bidding zone borders in Europe
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imbalance netting and
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other regional integration projects in balancing timeframe.
Read more about ACER’s monitoring of the internal electricity market.
Monitoring the Implementation of the Market Codes
External Reports
Report on capacity calculation and allocation
The CACM and FCA Regulations requires ENTSO-E to report on capacity calculation and allocation and submit the findings to ACER.
The ENTSO-E report on capacity calculation and allocation describes the status of capacity calculation and allocation for the day-ahead, intraday and long-term timeframe. It also reviews the regional capacity calculation methodologies and assesses the status of the pan-European common grid model.
Legal basis:
Capacity Allocation and Congestion Management (CACM) Regulation - Article 31
Forward Capacity Allocation (FCA) Regulation - Article 26
ENTSO-E should submit the report to ACER every two years, if requested.
In July 2021, ENTSO-E submitted to ACER its latest report on capacity calculation and allocation.
Previous versions: 2019 and 2017
Report on the operation of market coupling algorithms - SDAC and SIDC
The CACM Regulation requires all TSOs and NEMOs to report on the market coupling algorithms’ operation. NEMOs and TSOs jointly issue the report on a yearly basis and submit it to ACER.
The annual report on the operation of market coupling algorithms for the Single Day-Ahead Coupling (SDAC) and Single Intraday Coupling (SIDC) includes:
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operations,
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incidents,
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the decisions on the requests for change and on the application of corrective measures.
The report also includes an analysis of the algorithm performance, its scalability, and an update on research and development.
Legal basis:
Capacity Allocation and Congestion Management (CACM) Regulation - Article 37
Find the latest version of the CACM Annual Report 2020
Report on the costs of establishing, amending and operating SDAC and SIDC
The CACM Regulation requires all relevant NEMOs and TSOs to provide a yearly report to the regulatory authorities explaining the costs of establishing, amending and operating single day-ahead and intraday coupling and the forecast for the upcoming year.
The report includes the actual yearly costs directly related to the establishment, amendment and the operation of single day-ahead and intraday coupling and the forecast of the costs for the upcoming year. It also provides the breakdown of regional SDAC and SIDC costs.
Legal basis:
Capacity Allocation and Congestion Management (CACM) Regulation - Article 80
Find the latest version of the CACM Cost Report 2023
Previous versions: 2022, 2021, 2020, 2019, 2018 and 2017
ENTSO-E Market Report
The CACM, FCA and EB Regulation requires ENTSO-E to monitor the progress and status of the electricity markets. Therefore, ENTSO-E publishes an annual report covering the different timeframes where electricity is traded. The report shows the progress of TSOs and NEMOs in regards to the implementation of the market codes. It further assesses the status of each cross-border market in the different timeframe including a description of the governance and operation, shows the related expenditures for the provision of these markets and presents their latest developments.
Find the latest version of the ENTSO-E Market Report 2021.
ENTSO-E’s European Report on Integration of Balancing Markets
The EB Regulation requires ENTSO-E to publish a report on monitoring, describing and analysing its implementation and describes the progress made with the integration of balancing markets in Europe.
Every two years, ENTSO-E needs to publish a detailed report (starting from June 2020), while starting from June 2021 it shall publish a shorter version to review the progress and update the performance indicators.
Additionally, at least once every two years, each TSO shall publish a report on balancing covering the previous two calendar years, which shall either be in English or at least contain an executive summary in English.
The latest available executive summaries of these national reports are included in the detailed version of the European report on integration of balancing markets of the same year.
Access the first European Report on Integration of Balancing Markets
Report on the costs of establishing, amending and operating the European balancing platforms
The EB Regulation requires all TSOs to provide a yearly report to the regulatory authorities explaining the costs of establishing, amending and operating the European balancing energy platforms for the exchange of balancing energy from frequency restoration reserves and replacement reserves and for the imbalance netting process are explained in detail.
Legal basis: