Today, ACER issues its Recommendation proposing potential improvements to the gas Capacity Allocation Mechanisms Network Code (CAM NC).

The CAM NC harmonises how Transmission System Operators (TSOs) offer and allocate available gas transmission pipeline capacity to network users. The network code, last amended in 2017, needs to be updated to reflect Europe’s decarbonisation goals and the evolving gas market.

The revision process

In 2023, ACER initiated the revision process, as invited by the European Commission. The revision process was informed by new regulatory elements from the hydrogen and gas decarbonisation package, ACER’s initial analysis of the network code's achievements and areas for improvement, and dialogue with stakeholders.

Following the analysis of inputs received during the last consultation (September-October 2024), ACER concluded the revision process by issuing its Recommendation to the European Commission on 20 December 2024.

What are the main recommendations?

• Utilise the current gas system efficiently and strengthen its monitoring by improving transparency on how capacity is maximised, and enhance coordination and consultation among relevant regulatory authorities, TSOs and network users.  
• Enhance transmission capacity that is made available by increasing auction opportunities for existing capacity products and introducing a capacity offer between monthly and daily auctions, thereby contributing to security of supply.
• Allow a quick modification of non-essential auction details to ensure auctions can reflect the evolving market conditions, while maintaining harmonised rules for capacity allocation across all interconnection points.

What are the next steps?

The European Commission can amend the network code following the comitology process. ACER’s Recommendation offers a starting point for that process.

ACER has released its multi-annual 'Single programming document 2025-2027', outlining its strategic goals and priorities for the coming years. The document also includes ACER’s 2025 Annual Work Programme, which focuses on advancing the EU energy market while tackling emerging regulatory challenges.

Which are ACER’s priorities for 2025-27?

ACER's will continue its work on:

• the EU energy market;
• infrastructure and security of supply;
• the integrity and transparency of wholesale energy markets; and
• longer-term regulatory challenges.

The 2025 annual work programme incorporates the new tasks given to ACER by different legislative packages adopted in 2024:

• the Hydrogen and decarbonised gas market package of laws;
• the Methane Emissions Regulation;
• the reforms of the Electricity Market Design; and
• the revisions of the Regulation on Energy Market Integrity and Transparency (REMIT).

Access previous editions.

Today, ACER has submitted to the European Commission its Recommendation to amend the HVDC Network Code, which sets binding rules for connecting high-voltage direct current (HVDC) systems and direct current (DC) connected ‘power park modules’ to the grid. 

Why amend the rules? 

These amendments aim to safeguard future energy system needs in the EU. Substantial growth in generation capacity of isolated offshore Alternating Current (AC) networks (or AC hubs) is expected. 

This ACER Recommendation aims to address the changes in the electricity sector, focusing on the growing role of offshore power park modules, demand facilities, power-to-gas units (e.g., electrolysers for renewable hydrogen), electricity storage, and HVDC systems connecting isolated (AC) networks.  

Key terms explained:  

• Power park modules refer to offshore generators, comprising a single or a set of generating units connected to the offshore AC network (e.g., wind, solar, wave, etc.). 

• AC hubs will connect large-scale (tens of GW) offshore power generation and large-scale industrial demand (electrolysers) along with storage and other demand. 

• Demand refers to system users that are consuming electricity from the network (e.g., power-to-gas units, industrial consumers, etc). 

What is this ACER Recommendation about? 

In December 2023, ACER recommended amending the Network Codes on requirements for grid connection of generators and demand connection. To ensure consistency in grid connection rules and address new system needs (e.g., offshore networks and new system users like storage and demand facilities), ACER initiated the amendment process of the HVDC Regulation. 

ACER proposes: 

• Expanding the Network Code’s scope to include new offshore demand facilities, power-to-gas facilities (mainly electrolysers), offshore electricity storage, and HVDC systems connecting isolated AC networks. 

• Introducing technical requirements for new offshore demand facilities, power-to-gas facilities (mainly electrolysers), and offshore electricity storage to support both interconnected and offshore systems. 

Process and next steps 

This ACER Recommendation is the result of extensive engagement including: 

• Public consultation (June-September 2024).   

• Webinar (June 2024).

ACER reviewed the stakeholders’ feedback and consulted the European Network of Transmission System Operators for Electricity (ENTSO-E) and other stakeholders to finalise the Recommendation.  

The next step is for the European Commission to adopt the Network Code in line with the Electricity Regulation.  

The Comisión Nacional de los Mercados y la Competencia (CNMC) has imposed a €6 million fine on GESTERNOVA S.A. and a €1.5 million fine on AXPO IBERIA for manipulating the Spanish electricity market between 30 September and 30 December 2022.

These penalties come under the REMIT Regulation (EU) No 1227/2011, which prohibits market manipulation and seeks to protect the integrity and transparency of the EU’s wholesale energy markets.

In its decisions, CNMC found that GESTERNOVA S.A. and AXPO IBERIA had breached Article 5 of REMIT by manipulating the continuous intraday market by:

• Giving false or misleading signals regarding the supply of wholesale energy products, through behaviour known as ‘quote stuffing’.
• Issuing (and also withdrawing in AXPO IBERIA’s case) non-genuine orders to be in an advantageous position to execute cross-border sales with France.

CNMC’s investigation revealed that GESTERNOVA S.A. and AXPO IBERIA, in multiple sessions of this period, issued (or also withdrew in AXPO IBERIA’s case) non-genuine sell orders by using algorithmic trading with the goal of monopolising the order book queue for the D+1 product. Their behaviour blocked other market participants’ orders from being accepted in the order queue. Consequently, at the start of the trading session, one or more of GESTERNOVA S.A.’s and AXPO IBERIA's sell orders were prioritised at the top of the order book, ready to be the first matched once additional capacity would become available at the interconnection with France.

CNMC considers the behaviour as “quote stuffing” (defined in 6.1st edition of ACER REMIT Guidance as entering a large number of orders to trade and/or cancellations and/or updates to orders to trade so as to create uncertainty for other participants, slowing down their process, and/or to camouflage one’s own strategy).

ACER welcomes the rigour of CNMC’s enforcement with these third and fourth CNMC market manipulation decisions this year.

Access the GESTERNOVA Decision and AXPO Decision, together with CNMC’s GESTERNOVA press release and AXPO press release (both in Spanish).

See the latest ACER table of REMIT breach sanction decisions adopted by national regulatory authorities.

Check the ACER REMIT Guidance (6.1st edition) for more information on the types of trading practices which could constitute market manipulation under REMIT.

Interested in further information on enforcement decisions under REMIT? Check out ACER’s REMIT Quarterly reports.

Check out ACER latest guidance on REMIT and LNG data reporting, updated in December 2024 to align them with the revised REMIT Regulation.

Today, ACER issues its Opinion on the draft statutory documents proposed by future hydrogen transmission network operators to formally establish the European Network of Network Operators for Hydrogen (ENNOH) as an association under the Belgian law.

As an independent body, ENNOH will be responsible for fostering collaboration among hydrogen transmission network operators across the EU.

What’s the role of ACER?

ACER is mandated to provide an Opinion on ENNOH’s draft statutory documents, which were submitted at the end of August.

ACER conducted a public consultation from 23 September to 21 October 2024, seeking views from organisations representing all stakeholders, in particular hydrogen system users, including customers. All responses received are available on the consultation page.

What is the main conclusion?

ACER welcomes the draft statutory documents received, and suggests how to enhance them to further support the establishment of ENNOH. ACER highlights, however, that a crucial factor for success lies in the timely and committed transposition of certification provisions from the Hydrogen and Decarbonised Gas Market Directive by the Member States. This responsibility, ACER notes, rests with the relevant ministries, not ENNOH or its members.

What are the next steps?

This ACER’s Opinion is addressed to the European Commission, which now has three months to provide its opinion. Should the Commission’s opinion be favourable, future hydrogen transmission network operators will have three months to adopt and publish the statutory documents.

ACER issues its Opinion on the Winter Supply Outlook 2024/25 published by the European Network of Transmission System Operators for Gas (ENTSOG).

ENTSOG’s Winter Supply Outlook 2024/2025 evaluates the resilience of the European gas system by analysing different scenarios involving prolonged disruptions of Russian gas imports. The Outlook focuses also on Europe’s preparedness for winter 2024/2025 and summer 2025, examining its gas system’s capacity to cope with typical and severe winter conditions (including high demand and the consequences of the expiry of Ukraine’s gas transit agreement with Russia by the end of December 2024). It also assesses the potential impact of supply disruption via the TurkStream pipeline (running from Russia to Turkey) and models varying levels of Liquified Natural Gas (LNG) supply to Europe, including high, standard, and low supply scenarios.

Highlights of ENTSOG’s Winter Supply Outlook:

• High gas storage levels: on 1 October 2024, EU gas storage reached 94% of its capacity, thanks to reduced consumption, high initial storage levels, and measures by Member States.

• Monitor withdrawals from gas storage: Early gas withdrawals could deplete storage by the end of the season, increasing the risk of demand curtailment during cold spells.

• Summer storage targets: maintaining 30-40% of storage at the start of the next injection season (March 2025) is crucial to meet the 90% target by the end of summer 2025.

• Reduced reliance on Russian gas: the EU could maintain 40% storage levels at this winter's end without Russian pipeline gas, showing increased independence.

• Mitigating full supply disruptions: in case of a full gas supply disruption, extra supplies mainly from LNG imports and a 15% demand reduction are needed to avoid curtailment and maintain storage levels.

• LNG and Norwegian gas: LNG and Norwegian gas are now primary sources for EU Member States and the Energy Community’s contracting parties.

What is in ACER’s Opinion?

• ACER acknowledges that ENTSOG enlarged the scope of its methodology to include gas supply and storage developments (i.e. strategic reserves based on each Member States’ regulations, Ukrainian storage as a last resort) and to reconsider the role of LNG regasification terminal tanks for short-term storage flexibility. ACER also supports ENTSOG's efforts to model a ‘low LNG supply scenario’ that excludes Russian LNG supplies.

• ACER acknowledges that ENTSOG enlarged the scope of its methodology to include gas supply and storage developments (i.e. strategic reserves based on each Member States’ regulations, Ukrainian storage as a last resort) and to reconsider the role of LNG regasification terminal tanks for short-term storage flexibility. ACER also supports ENTSOG's efforts to model a ‘low LNG supply scenario’ that excludes Russian LNG supplies.

• ACER recommends ENTSOG to consider the following methodological improvements:
  • The inclusion of a qualitative analysis of gas futures prices and summer-winter spreads for better forecasting of potential challenges for market-based filling of gas storages.
  • Clarify the assumptions and methodology used to build the ‘low LNG supply scenario’.
  • Specify capacities added by newly commissioned projects.
  • Compare seasonal demand projections with forecasts from other institutions.

• ACER highlights the importance of a close cooperation between ENTSOG and ENTSO-E to ensure consistent results in their respective seasonal outlooks. In addition, ACER identified several risk factors for the upcoming year:
  • likely stop of Russian gas transit through Ukraine after 2024;
  • unusually cold winter;
  • failure to reduce gas demand;
  • increased demand volatility from gas power plants;
  • rising Asian gas demand;
  • low storage levels at the end of winter;
  • operational incidents in supply routes;
  • rising tensions in the Middle East affecting LNG flows and crude prices.

ACER publishes today an updated edition of its Guidance on REMIT application, reflecting the changes introduced by the revised REMIT Regulation.

ACER regularly produces and updates a non-binding Guidance for National Regulatory Authorities (NRAs), market participants and other relevant stakeholders, to ensure effective coordination and consistency in the application of REMIT. This guidance ensures that REMIT requirements are well explained and uniformly applied, providing clarity and direction to NRAs, market participants and other relevant stakeholders.                          

What are the main updates?

The revised Guidance:

• Updates definitions to align them with the revised REMIT Regulation, including the concepts of market manipulation, wholesale energy products and persons professionally arranging or executing transactions (PPAETs).
• Reflects the expanded scope of REMIT’s application on data reporting: covering new products, electricity balancing markets, coupled markets and algorithmic trading. It also clarifies the extension of REMIT’s market abuse provisions to wholesale energy products that also qualify as financial instruments.
• Clarifies the concept and obligations of the PPAETs under Article 15.
• Corrects wording and references to ensure consistency with the revised REMIT Regulation.

This update was delivered after extensive consultation with NRAs, REMIT experts, and members of the Market Surveillance Forum. The European Securities and Markets Authority (ESMA) was also consulted in the process to ensure accuracy.

What are the next steps?

ACER invites NRAs and relevant stakeholders to follow the ACER Guidance while implementing the revised REMIT Regulation. Further revisions are not anticipated until all implementing and delegated acts are in place.

The EU framework that aims to prevent wholesale energy market abuse and support fair competition (REMIT) was revised in May 2024 to keep pace with evolving market dynamics. Following the ongoing discussions with relevant stakeholders after the adoption of the revised REMIT, ACER publishes today the updated:

• Transaction Reporting User Manual (TRUM) and its Annexes; and
• Guidance on reporting LNG market data.

These guidance documents help market participants with their data reporting obligations.

ACER has also released the minutes of the November roundtable meeting on data reporting.

What’s new in these ACER guidance documents?

• TRUM and its Annexes: the amendments mainly focus on clarifying the definition of Organised Marketplaces (OMPs), outlining their criteria and characteristics. This update aligns TRUM with the revised REMIT and aims to create a consistent understanding to help market participants, regulators, and other stakeholders identify and assess OMPs.
• Guidance on reporting LNG market data: the update aligns the legal references of the document with the revised REMIT, which now includes the collection of LNG market data for the publication of ACER’s daily LNG price assessment and benchmark.  

The updated TRUM and its Annexes are available in the REMIT Knowledge Base.

What was the roundtable meeting about?

On 26 and 28 November 2024, ACER organised a roundtable meeting on data reporting.

The event featured a joint session with the European Commission and gathered Associations of Energy Market Participants (AEMPs), OMPs, Registered Reporting Mechanisms (RRMs) and Inside Information Platforms (IIPs) to discuss the upcoming revision of the REMIT Implementing Regulation and other changes introduced by the updated REMIT. Stakeholders also received updates on the REMIT data reporting framework, including the TRUM.

ACER is forming a new Expert Group to provide advice on peak-shaving products. We are looking for experts (e.g. engineers and/or economists) with relevant expertise in electricity markets.

What are peak-shaving products?

Peak-shaving products are market-based tools that enable market participants to reduce their electricity consumption during peak demand periods in exchange for compensation.

Under the Electricity Market Design (EMD) Regulation, the Council can declare a regional or EU-wide electricity crisis if wholesale prices become excessively high. In such cases, Member States can direct system operators to use peak-shaving products to reduce power demand, helping to stabilise the grid and lower prices.

The EMD Regulation also mandates ACER to assess the potential impact of developing peak-shaving products on Europe’s electricity market under normal market conditions. To this end, ACER will launch a public consultation in spring 2025.

What will the Expert Group do?

The Expert Group will advise ACER on how developing peak-shaving products (i.e., products aiming to reduce electricity consumption during peak hours) might affect the EU electricity market. Experts will explore the products’ feasibility, main benefits, and potential drawbacks. They will also advise ACER in assessing whether these products can be introduced without disrupting the functioning of electricity markets or redirecting existing demand response services towards peak-shaving products.

The group will operate until summer 2025, with the possibility of extending throughout the year for further analysis.

How to apply?

Follow the instructions in the Open Letter, ensuring that you fulfill all the criteria. The deadline for application is Monday, 20 January 2025.

Read more about the Expert Group.