Monitoring

Regulation (EU) 2019/942​ and CACM Regulation task the Agency and ENTSO to monitor the implementation of CACM Regulation.

The purpose of these tasks is generally twofold. First, the Agency and ENTSO-E should mon​​itor the effectiveness in the implementation of CACM Regulation in terms of implementation of the requirements and provisions by TSOs and NEMOs. Second, once the specific requirements of CACM Regulation have been implemented, ENTSO-E and the Agency should monitor the effect of the CACM Regulation on the efficiency of capacity allocation and congestion management in the day-ahead and intraday timeframe and on the functioning of electricity market in general.

Both aspects are addressed in different monitoring reports issued by the Agency and ENTSO-E.​

Article 82 of the CACM Regulation, Article 5(1)(e) of the Regulation (EU) 2019/942 and Article 32 of the Regulation (EU) 2019/943​ set out the monitoring task of the implementation of single day-ahead and intraday coupling for ENTSO-E and the Agency.

The Agency needs to monitor the implementation by the ENTSO-E of network codes and guidelines. The Agency also needs to monitor the implementation of the network codes and the guidelines and their effect on the harmonisation of applicable rules aimed at facilitating market integration as well as on non-discrimination, effective competition and the efficient functioning of the market, and report it to the Commission.

Report on implementation of CACM Regulation

The Agency plans to issue annually the reports on the implementation of CACM Regulation. As the implementation of CACM Regulation is still in a stage of development and approvals of terms and conditions and methodologies and no effective implementation has taken place yet, the Agency did not issue any monitoring reports with this respect. This first general monitoring report on the implementation of CACM Regulation was issued in 2019.​

Pursuant to Article 7 of the CACM Regulation, the Agency also needs to monitor NEMOs' progress in establishing and performing the MCO functions, in particular regarding the contractual and regulatory framework and regarding technical preparedness to fulfil the MCO functions and the Agency needs report to the Commission whether progress in establishing and performing single day-ahead or intraday coupling is satisfactory. The Agency submitted to the Commission the first report on NEMOs' progress in establishing and performing the MCO functions. Based on Commission's request, the update of this report is submitted to EC every 6 months.

Report on the effects of CACM Regulation

The Agency's task to monitor the effect of CACM Regulation on the harmonisation of applicable rules aimed at facilitating market integration as w​​ell as on non-discrimi​nation, effective competition and the efficient functioning of the market is performed jointly with the Agency's monitoring of the internal market in electricity in accordance with Article 15 of the Regulation (EU) 2019/942​. Although the main provisions of CACM Regulation have not been implemented yet and therefore the effects cannot be observed yet, the annual Market Monitoring Report by the Agency analyses the effects of the early implementation activities of electricity market integration such as market coupling in the day-ahead and intraday timeframe and introduction of flow-based capacity calculation. You can find more about the Agency's monitoring of internal market in electric​ity here.​

Report on capacity calculation and allocation

Pursuant to Article 31 of CACM Regulation, ENTSO-E needs to draft a report on capacity calculation and allocation and submit it to the Agency no later than 2 years after entry into force of CACM Regulation. The subsequent issues of this reports are to be delivered to the Agency every two years if requested so from the Agency.  ​

Action 1: In August 2017, ENTSO-E submitted to the Agency the first Biennial report on capacity calculation and allocation. 

Action 2: In August 2019, ENTSO-E submitted to the Agency a subsequent report on capacity calculation and allocation 2019.

Report on harmonisation of capacity calculation methodology

Pursuant to Article 21 of the CACM Regulation, the harmonisation of capacity calculation methodology shall be subject to an efficiency assessment concerning the harmonisation of the flow-based methodologies and the coordinated net transmission capacity methodologies that provide for the same level of operational security. All TSOs shall submit the assessment with a proposal for the transition towards a harmonised capacity calculation methodology to all regulatory authorities within 12 months after at least two capacity calculation regions have implemented common capacity calculation methodology.

No actions have been completed yet with regard to this topic.

Report on harmonisation of redispatching and countertrading

Pursuant to Article 35 of the CACM Regulation, all TSOs in each capacity calculation region shall develop a report assessing the progressive coordination and harmonisation of mechanisms, agreements and proposals reflecting the right of the TSOs to redispatch all available generation units and loads in accordance with the appropriate mechanisms and agreements applicable to its control area, including interconnectors. The report shall be submitted to their respective regulatory authorities for their assessment. The proposals in the report shall prevent these mechanisms and agreements from distorting the market.

No actions have been completed yet with regard to this topic.

Report on operation of SDAC and SIDC

Pursuant to Article 37 of the CACM Regulation, all TSOs and all NEMOs shall review the operation of the price coupling algorithm and continuous trading matching algorithm no later than two years after the approval of the SDAC and SIDC algorithms and submit the report to the Agency. If requested by the Agency, the review shall then be repeated every second year.

No actions have been completed yet with regard to this topic.

Report on the costs of establishing, amending and operating SDAC and SIDC

Pursuant to Article 80 of the CACM Regulation, all relevant NEMOs and TSOs shall provide a yearly report to the regulatory authorities in which the costs of establishing, amending and operating single day-ahead and intraday coupling are explained in detail. Costs directly related to single day-ahead and intraday coupling shall be clearly and separately identified and auditable. The report shall also provide full details of contributions made to NEMO costs by TSOs in accordance with Article 76(2).

Action 1: In March 2019, the Agency published all NEMOs' and all TSOs' report on the common and regional costs of establishing, amending and operating SDAC and SIDC for the year 2017. In April 2019, all NEMOs together with all TSOs submitted a corrigendum of the report (page 12 only) and the Agency published it.

Action 2: In August 2019, the Agency published all NEMOs' and all TSOs' report on the common and regional costs of establishing, amending and operating SDAC and SIDC for the year 2018.

Action 3: In August 2020, the Agency published all NEMOs' and all TSOs' report on the common and regional costs of establishing, amending and operating SDAC and SIDC for the year 2019. 

Action 4: In September 2021, the Agency published a report on national costs and cost contributions of establishing, amending and operating SDAC and SIDC for the years 2017 and 2018, as a complementary part of the already published all NEMOs’ and all TSOs’ reports on common and regional costs.