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: 8th Oct 2019
  • Decisions
  • 2 Associated documents
This letter details our decision to conditionally approve the TSOs’ proposal for the Terms and Conditions related to balancing in accordance with Article 18 of the Commission Regulation (EU) 2017/2195 establishing a guideline on electricity balancing.

  • Published: 27th Aug 2019
  • Decisions
  • 3 Associated documents
Decision to approve ElecLink's Access Rules and Charging Methodology

  • Published: 9th Aug 2019
  • Decisions
  • 2 Associated documents
This letter sets out our decision to request for amendments to 3 proposals and request for the Agency to adopt decisions on 3 proposals required by the EBGL Regulation.

  • Published: 7th Aug 2019
  • Decisions
  • 1 Associated documents
This letter acknowledges that the obligations mapped to the Grid Code and NETS SQSS cover most of the requirements of Articles 118 and 119 of the SOGL Regulation and approves the intermediate methodology, which covers the remaining requirements of...

  • Published: 22nd Jul 2019
  • Decisions
  • 2 Associated documents
This letter sets out our decision to approve the amended IU TSO methodologies for coordinated redispatching and countertrading and for coordinated redispatching and countertrading methodologies in accordance with Articles 35 and 74 of the Comission...

  • Published: 22nd Jul 2019
  • Decisions
  • 2 Associated documents
This letter sets out our decision to approve the IU TSO’s proposal for the methodology for splitting long-term cross-zonal capacity, and outlines the necessary next steps.

  • Published: 22nd Jul 2019
  • Decisions
  • 2 Associated documents
This letter sets out our decision to request an amendment to the IU TSO’s proposal for the long-term capacity calculation methodology, and outlines the necessary next steps that must be taken.

  • Published: 19th Jul 2019
  • Decisions
  • 2 Associated documents
This letter details our decision to request further amendments to the TSO’s proposal for the implementation framework for a European platform on the imbalance netting process in accordance with the EBGL Regulation.

  • Published: 21st Jun 2019
  • Decisions
  • 2 Associated documents
This letter details our decision to assign TSO obligations under the Emergency & Restoration Regulation within GB.

  • Published: 21st Jun 2019
  • Decisions
  • 1 Associated documents
Request for amendment to the Electricity System Operator's proposal for the terms and conditions to act as defence and restoration service providers, for the list of SGUs responsible for implementing on their installations measures from other EU Network...

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