Capacity Allocation & Congestion Management

General Provisions

NEMOs designation

Each Contracting Party shall ensure that one or more NEMOs are designated by six months after the entry into force of this Regulation

Each Contracting Party electrically connected to a bidding zone in another Contracting Party or Member State shall ensure that one or more NEMOs are designated by six months after the entry into force of this Regulation to perform the single day-ahead and/or intraday coupling.

If a national legal monopoly for day-ahead and intraday trading services which excludes the designation of more than one NEMO already exists in a Contracting Party or Contracting Party’s bidding zone at the time of the entry into force of this Regulation, the Contracting Party concerned must notify the Energy Community Secretariat within two months after entry into force of this regulation and may refuse the designation of more than one NEMO per bidding zone.

NEMOs tasks

By twelve months after the entry into force of this Regulation all NEMOs from Contracting Parties and Member States shall submit to all regulatory authorities, the Energy Community Regulatory Board and the Agency for the Cooperation of Energy Regulators a plan on integration of NEMOs from Contracting Parties in the MCO functions, and in the agreements between NEMOs and with third parties. The plan shall include a detailed description and the proposed timescale for implementation, and a description of the expected impact of such integration on the performance of the MCO functions.

All TSOs and NEMOs Terms and conditions or methodologies

All TSOs and NEMOs methodologies are directly applicable for Contracting Parties.

TSOs and NEMOs shall apply the following methodologies, any amendments thereof shall be subject to approval by the Agency for the Cooperation of Energy Regulators. The Articles mentioned below refer to Commission Regulation (EU) 2015/1222, links are provided to the respective approved methodologies:

the plan on joint performance of MCO functions in accordance with Article 7(3);
the capacity calculation regions in accordance with Article 15(1);
the generation and load data provision methodology in accordance with Article 16(1);
the common grid model methodology in accordance with Article 17(1);
the proposal for a harmonised capacity calculation methodology in accordance with Article 21(4);
back-up methodology in accordance with Article 36(3);
the algorithm submitted by NEMOs in accordance with Article 37(5);
products that can be taken into account by NEMOs in the single day-ahead and intraday coupling process in accordance with Articles 40(1) and 53(1);
the maximum and minimum prices in accordance with Articles 41(1) and 54(2);
the intraday capacity pricing methodology to be developed in accordance with Articles 9(2), 9(6) and 55(1);
the intraday cross–zonal gate opening and intraday cross-zonal gate closure times in accordance with Article 59(1);
the day-ahead firmness deadline in accordance with Article 69;
the congestion income distribution methodology in accordance with Article 73(1).

Regional Terms and conditions or methodologies

The proposals for the following terms and conditions or methodologies and any amendments thereof shall be subject to approval by all regulatory authorities of the concerned region:

the common capacity calculation methodology in accordance with Article 20(2);
decisions on the introduction and postponement of flow-based calculation in accordance with Article 20(2) to (6) and on exemptions;
the methodology for coordinated redispatching and countertrading in accordance with Article 35(1);
the common methodologies for the calculation of scheduled exchanges in accordance with Articles 43(1) and 56(1);
the fallback procedures in accordance with Article 44;
complementary regional auctions in accordance with Article 63(1);
the redispatching or countertrading cost sharing methodology in accordance with Article 74(1).

The following terms and conditions or methodologies and any amendments thereof shall be subject to individual approval by each regulatory authority or other competent authority of the Contracting Parties concerned:

where applicable, NEMO designation and revocation or suspension of designation in accordance with Article 4(2), (8) and (9);
if applicable, the fees or the methodologies used to calculate the fees of NEMOs relating to trading in the day-ahead and intraday markets in accordance with Article 5(1);
proposals of individual TSOs for a review of the bidding zone configuration in accordance with Article 32(1)(d);
where applicable, the proposal for cross-zonal capacity allocation and other arrangements in accordance with Articles 45 and 57;
capacity allocation and congestion management costs in accordance with Articles 75 to 79;
if applicable, cost sharing of regional costs of single day-ahead and intraday coupling in accordance with Article 80(4).

Capacity calculation

Capacity calculation time-frames

TSOs shall calculate cross-zonal capacity for at least the day-ahead and the intraday time-frames.

Capacity calculation regions

The following default capacity calculations regions including Contracting Parties are established.

Capacity Calculation Region Shadow South-East Europe (Shadow SEE CCR): Bidding-zone borders BA-RS, ME-BA, ME-AL, AL-MK, RS-MK, ME-RS, ME-KS, AL-KS, MK-KS, RS-KS as well as HR-BA, HR-RS, HU-RS, RO-RS, BG-RS, BG-MK, GR-MK, GR-AL
Capacity Calculation Region Italy-Montenegro (ITME CCR): Bidding-zone borders IT-ME
Capacity Calculation Region Eastern Europe (EE CCR): Bidding-zone borders UA-MD, UA-PL, UA-SL, UA-HU, UA-RO, MD-RO

All TSOs of Shadow SEE and EE CCR shall conclude agreements with the EU TSOs of SEE CCR by 6 months after the entry into force of this Regulation setting the basis for the cooperation between non-EU and EU TSOs in Shadow SEE and EE CCRs.

6 months after all SEE Contracting Parties participate in SDAC a proposal for flow-based capacity calculation needs to be submitted.

Capacity calculation methodologies

For the day-ahead market time-frame and intraday market time-frame the approach used in the common capacity calculation methodologies shall be a flow-based approach, except where TSOs are able to demonstrate that flow-based would not be more efficient compared to the coordinated net transmission capacity approach.

No later than 6 months after the establishment of CCRs, all TSOs in each CCR shall submit a proposal for a common coordinated capacity calculation methodology within the respective region.

No later than 6 months after at least all SEE Energy Community Contracting parties participate in SDAC, the TSOs from these Contracting parties together with the TSOs from at least Croatia, Romania, Bulgaria, Hungary and Greece shall jointly submit a proposal to introduce a common capacity calculation methodology using the flow-based approach for the day-ahead and intraday market time-frame. The proposal shall provide for a flow-based implementation date of no longer than two years after the participation of all SEE Energy Community Contracting Parties in the single day-ahead coupling.

Capacity calculation process

No later than 6 months after the establishment of the capacity calculation regions referred to in Article 15(1), all the TSOs in each capacity calculation region shall jointly set up the coordinated capacity calculators and establish rules governing their operations.

Bidding zone configuration

Reviewing existing bidding zone configurations

A review of an existing bidding zone configuration may be launched by:

the Energy Community Regulatory Board and, to the extent Member States are affected, the Agency for the Cooperation of Energy Regulators;
several regulatory authorities, pursuant to a recommendation from the Energy Community Regulatory Board or the Agency for the Cooperation of Energy Regulators;
TSOs of a capacity calculation region, together with all concerned TSOs whose control areas, including interconnectors, are within the geographic area in which the bidding zone configuration shall be assessed;

one single regulatory authority or TSO with the approval of its competent regulatory authority, for the bidding zones inside the TSO's control area, if the bidding zone configuration has negligible impact on neighbouring TSOs' control areas, including interconnectors, and the review of bidding zone configuration is necessary to improve efficiency, or to maintain operational security;
Member States and Contracting Parties in a capacity calculation region.

Regular reporting on current bidding zone configuration in Contracting Parties

The efficiency of the current bidding zone configuration shall be assessed every three years.

The Energy Community Regulatory Board and, to the extent Member States are affected, the Agency for the Cooperation of Energy Regulators, shall assess the efficiency of current bidding zone configuration every three years.

They shall:

request ENTSO for Electricity, acting in accordance with Article 3 of Procedural Act No 2022/2/MC-EnC and Article 14 of Regulation (EU) 2019/943, to extend the technical report on current bidding zone configuration drafted in accordance with Article 34(1)(a) of Regulation (EU) 2015/1222 to include the Contracting Parties; and
draft a market report evaluating the impact of current bidding zone configuration on market efficiency.

If the technical or market report reveals inefficiencies in the current bidding zone configuration, the Energy Community Regulatory Board and, to the extent Member States are affected, the Agency for the Cooperation of Energy Regulators, may request TSOs to launch a review of an existing bidding zone configuration in accordance with Article 32(1).

Redispatching and Countertrading

Coordinated redispatching and countertrading

Within 16 months upon entry into force of this Regulation, all the TSOs in each capacity calculation region shall develop a proposal for a common methodology for coordinated redispatching and countertrading.

By 26 months upon entry into force of this Regulation all TSOs in each capacity calculation region shall develop a report assessing the progressive coordination and harmonisation of those mechanisms and agreements and including proposals. The proposals in the report shall prevent these mechanisms and agreements from distorting the market.

Within 16 months upon entry into force all TSOs of a capacity calculation region shall develop a methodology for coordinated redispatching and countertrading.

Redispatching and countertrading cost sharing methodology

No later than 16 months after the decision on the capacity calculation regions is taken, all TSOs in each capacity calculation region shall develop a proposal for a common methodology for redispatching and countertrading cost sharing.

Single Day-ahead Coupling

Objectives of the price coupling algorithm

The price coupling algorithm shall produce results in a manner which:

aims at maximising economic surplus for single day-ahead coupling for the price-coupled region for the next trading day;
uses the marginal pricing principle according to which all accepted bids will have the same price per bidding zone per market time unit;
facilitates efficient price formation;
respects cross-zonal capacity and allocation constraints;
is repeatable and scalable.

Operation of single day-ahead coupling

The day-ahead market gate closure time in each bidding zone shall be noon market time day-ahead. TSOs or NEMOs may set a different gate closure time until they have joined single day-ahead coupling.

Single Intraday Coupling

Objectives of the continuous trading matching algorithm

From the intraday cross-zonal gate opening time until the intraday cross-zonal gate closure time, the continuous trading matching algorithm shall determine which orders to select for matching such that matching:

aims at maximising economic surplus for single intraday coupling per trade for the intraday market time-frame by allocating capacity to orders for which it is feasible to match in accordance with the price and time of submission;
respects the allocation constraints provided;
respects the cross-zonal capacity provided;
respects the requirements for the delivery of results set out in Article 60;
is repeatable and scalable.

Pricing of intraday capacity

All TSOs shall apply the single methodology for pricing intraday cross-zonal capacity.

Operation of single intraday coupling

Each coordinated capacity calculator shall ensure that cross-zonal capacity and allocation constraints are provided to the relevant NEMOs no later than 15 minutes before the intraday cross-zonal gate opening time.

TSOs shall apply the intraday cross-zonal gate opening and intraday cross-zonal gate closure times.