European market

To achieve a single European market in electricity, two key requirements must be in place:

  1. there must be sufficient physical transmission links between member states to transmit demand
  2. there need to be enough efficient market-based mechanisms to make the most of the transmission capacity.

To fulfil this aim we actively work on: 

  • GB Interconnector Policy
  • European Framework Guidelines and Network Codes for Electricity Markets
  • Electricity Regional Initiatives Project.

The GB Interconnector Policy

Our work within this area focuses on promoting cross-border electricity trading and the efficient use of electricity interconnectors.

The overall aim of our work is to maximise the efficient use of existing and planned interconnection by ensuring that users can respond efficiently to differences in energy prices across different countries. To optimise the use of existing capacity, we work to:

  • remove barriers to trade
  • ensure effective competition
  • ensure an appropriate allocation of  rights  and responsibilities between market participants.

We also work to create arrangements capable of sending clear investment signals for efficient levels of additional interconnection, thus facilitating further development of interconnections between Britain and other European countries.

European Framework Guidelines and Network Codes

We contribute to developing European Framework Guidelines for electricity markets, which then provide a basis for upcoming European Network Codes. Our team is currently involved in the development of European Network Codes on electricity balancing, capacity allocation and congestion management and forward transmission rights. 

Regional Initiatives

We play an active role in the Electricity Regional Initiative Project. This was initially launched in 2006 as an interim step to speed up the integration of Europe's national electricity markets.

The implementation of EU legislation aimed at liberalising the European energy markets (called the Third Package), combined with the strong commitment by member states to complete the internal energy market by 2014, adds further impetus to the project.

The UK is part of the France-UK-Ireland (FUI) region. As the lead regulator of this initiative, we work closely with other National Regulatory Authorities (NRAs), member state representatives and Transmission System Operators to identify specific barriers or distortions to trade and introduce practical improvements that will contribute to removing them.

A key priority for the region is the implementation of the CACM FG Target Model for electricity, which sets out the vision for intraday, day-ahead and long-term trading, cross-border balancing and capacity calculation.

The Electricity Regional Initiatives also cover interconnection. Four interconnectors with the UK currently exist, connecting Britain with France, the Netherlands, the Republic of Ireland, and Northern Ireland, with an overall capacity of 4 GW. Additional interconnectors with France, Belgium and Norway have also been proposed.

Publications and updates

  • Published: 19th May 2017
  • Decisions
  • 2 Associated documents
This letter sets out our decision to approve, in line with the all Regulatory Authority agreement, the CGMM and outlines the necessary next steps that must be taken.

  • Published: 17th May 2017
  • Decisions
  • 1 Associated documents
This document specifies our decision on which generators are classified as an ‘emerging technology’ in Great Britain.

  • Published: 17th Feb 2017
  • Decisions
  • 2 Associated documents
This letter sets out our decision to request an amendment to the Congestion Income Distribution Methodology.

  • Published: 14th Feb 2017
  • Decisions
  • 3 Associated documents
Our decision to request, in line with the all Regulatory Authority agreement and for the second time, an amendment to the all NEMO proposal for the Market Coupling Operator Plan and outlines the necessary next steps that must be taken.

  • Published: 13th Feb 2017
  • Decisions
  • 7 Associated documents
Our decision on the criteria for assessing derogation requests under the Grid Connection Codes.

  • Published: 10th Feb 2017
  • Decisions
  • 1 Associated documents
We are approving the arrangements concerning more than one Nominated Electricity Market Operator (NEMO) in the Great Britain bidding zone and outlining the necessary next steps.

  • Published: 10th Jan 2017
  • Decisions
  • 3 Associated documents
This letter sets out our decision to approve the Generation and Load Data Provision Methodology and to request an amendment to the Common Grid Model Methodology as well as the necessary next steps.

  • Published: 13th Dec 2016
  • Closed: 17th Jan 2017
  • Consultations & responses
  • 2 Associated documents
We are consulting on the criteria that we should use to assess derogation requests under the Requirement for Generators network code (RfG), Demand Connection Code (DCC) network code and High Voltage Direct Current (HVDC) network code.

  • Published: 30th Nov 2016
  • Decisions
  • 1 Associated documents
Our final decisions on designation of EPEX SPOT SE as a Nominated Electricity Market Operator (NEMO) and revocation of APX Commodities Limited’s NEMO designation.

  • Published: 24th Oct 2016
  • Decisions
  • 2 Associated documents
Ofgem’s decision to assign TSO obligations under the RfG, HVDC, DCC, and FCA Regulations within GB.