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: 21st Sep 2018
  • Decisions
  • 2 Associated documents
This letter sets out our decisions to request amendments to the Channel TSOs' proposals for the relevant RD & CT methodologies.

  • Published: 14th Sep 2018
  • Decisions
  • 2 Associated documents
This letter details our decision to assign TSO obligations under the Guideline on Electricity Balancing Regulation within GB.

  • Published: 14th Sep 2018
  • Decisions
  • 3 Associated documents
This letter sets out our decisions to request amendments to the IU TSOs’ proposals for the relevant RD & CT methodologies.

  • Published: 13th Sep 2018
  • Decisions
  • 2 Associated documents
This letter sets out our decision to request an amendment to the all TSOs’ proposal for Electricity Exchange Schedules and the necessary next steps.

  • Published: 7th Sep 2018
  • Decisions
  • 2 Associated documents
This letter sets out the Authority’s decision to approve the CGMM proposal submitted by NGET on 12 February 2018.

  • Published: 15th Aug 2018
  • Decisions
  • 2 Associated documents
Decision to request amendment - Transmission System Operators’ proposal for Key Organisational Requirements, Roles and Responsibilitiy relating to data exchange

  • Published: 27th Jul 2018
  • Decisions
  • 2 Associated documents
This letter sets out our decision to request an amendment of the amended Channel TSOs’ proposal for the Common Capacity Calculation Methodology.

  • Published: 23rd Jul 2018
  • Decisions
  • 2 Associated documents
This letter sets out our decision to approve the IU TSOs’ proposal for the application of the CNTC approach to capacity calculations for the IU Region.

  • Published: 23rd Jul 2018
  • Decisions
  • 2 Associated documents
This letter sets out our decision to approve the IU TSOs’ proposal for the Common Capacity Calculation Methodology and outlines the next steps.

  • Published: 13th Jul 2018
  • Decisions
  • 2 Associated documents
This letter sets out our decision to approve the amended FCA CGMM, pursuant to Article 4(9) and Article 4(11) of the FCA Regulation, and outlines next steps.

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