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  EU Member States Adopt Major Building Block of the Internal Energy Market

Brussels, 2014-12-05

The adoption of the Regulation on Capacity Allocation and Congestion Management (CACM) by Member States in Comitology today, 5 December 2014, represents a significant milestone in the European effort to deliver the internal energy market (IEM), and a prerequisite for achieving European long term decarbonisation objectives. It is the first text to be adopted as part of the Electricity Network Codes programme, which will provide Europe with the largest and most competitive electricity market in the world.

The adoption of CACM, which was drafted by ENTSO-E according to an ACER Framework Guideline, is the result of more than three years of collaborative work involving hundreds of European experts from all industry sectors, regulators, transmission system operators (TSOs), ENTSO-E, Member States and the European Commission. ENTSO-E expresses its thanks and congratulations to all those who dedicated time to this ambitious task. The large majority support received in favour of adoption is encouraging for the smooth and successful implementation process.

CACM will now go through scrutiny from the European Parliament and Council. ENTSO-E hopes this phase will lead to the definitive adoption of the text in its current form in early 2015.

The adoption of CACM is a significant achievement, but it is only a beginning. TSOs and other stakeholders already started early implementation projects of CACM. The adoption of the regulation will clearly boost those efforts in creating well-functioning pan-European intra-day and day-ahead markets. The task ahead is not an easy one, and will once again require massive involvement and dedicated work from TSOs and all parties of Europe’s electricity sector.

ENTSO-E now looks forward to other network codes being discussed and adopted in Comitology over the next year, in the fields of network connection, system operations and markets, and to further cooperation with the European Commission, Member States, regulators and stakeholders in the coming months.

AboutCACM

CACM will help achieve a fully integrated electricity market for Europe by setting out the rules that will introduce a single approach to cross-border electricity trading in Europe. The guideline sets out rules for capacity allocation – allocating the available cross-border capacity on the electricity transmission infrastructure in day-ahead and intraday timescales, and outlines the way in which capacity will be calculated across the different zones. CACM also sets out the rules for congestion management, the management of scarce transmission capacity among the parties requesting use of such

Related Links

Draft Commission Regulation establishing a Guideline on CACM

source: ENTSO-E
added: 11.12.2014
 
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