Annexes to COM(2018)538 - Development of single day-ahead and intraday coupling in the Member States and of competition between NEMOs in accordance with Article 5(3) of Commission Regulation 2015/1222

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dossier COM(2018)538 - Development of single day-ahead and intraday coupling in the Member States and of competition between NEMOs in accordance ...
document COM(2018)538 EN
date July 16, 2018
agreement among relevant parties at several occasions.

In addition, the implementation of the various methodologies required for the market coupling has proven to be challenging. While deciding on such matters, it is essential to ensure that NEMOs are treated in a non-discriminatory way and that the current solutions are compliant with the CACM requirements (or they can be further developed to be compliant).

IV.Preliminary conclusions 

The Commission's experience with NEMOs competition remains limited at this date, notably due to the delay in the implementation of all regulatory and technical steps necessary to allow competition among NEMOs in the single day-ahead and the single intraday coupling. From the preliminary experience so far, notably in the field of day-ahead market coupling, the competition model could be implemented by the majority of Member States in the Union without major obstacles. Thus, there are no manifest reasons to change the approach chosen by CACM and to exclude competition at this stage.

At the same time, due to the ongoing implementation at the time of publication of this report and as NEMOs competition has not yet started or shown its full effect in the Member States where no monopoly exists, the Commission will not take a conclusive view at this stage on whether it is justified to abolish the possibility for Member States to provide for a legal monopoly. The possibility to apply the monopoly model and to refuse the trading services by a NEMO designated in another Member State is still considered as an exception to the default competition model. However, the monopoly NEMO exception under the CACM does not impair or limit in any way the application of the competition rules enshrined in the Treaty on the Functioning of the European Union (Treaty). In particular, the application of the Treaty's provisions on competition apply broadly to the conduct of the NEMOs on the market, including risks of cross-subsidisation, and any Member State measure granting NEMO’s exclusive rights. Therefore, as non-discrimination and a level playing field among competitive and monopoly NEMOs need to be ensured, the Commission under the Treaty’s and CACM provisions will continue to monitor the progress of day-ahead and intraday market coupling, as well as the effects of NEMO competition in the European Union.

Regarding the governance of the single day ahead and single intraday coupling the preliminary analysis of the progress made so far shows that the roles and responsibilities of NEMOs and TSOs in the development and operation of the coupling solutions need to be better clarified. While CACM appoints NEMOs with the main responsibility for these tasks, TSOs should be more involved and have a decisive role in technical requirements related to capacity calculation and allocation. Moreover, the experience shows that the MCO function plays a central role for the completion of the target model and the enhancement of NEMOs' competition. Therefore, the Commission sees a need to continue the discussion on the challenges faced so far and assess the various options for a potential change in the governance of the MCO function.

The Commission remains strongly committed to continuing the work towards the creation of the single day-ahead and single intraday coupling in order to bring further benefits to European citizens through market integration. When it comes to fully reaping the potential of cross-border trade, the best recipe remains the full and timely implementation of CACM.


(1)

     OJ L 197, 25.7.2015, p. 24–72.

(2)

     See Article 5(1), first subparagraph of CACM.

(3)

     See Article 5(1), third subparagraph of CACM.

(4)

     SWD(2018) 376

(5)

 Recital 4ff of CACM.

(6)

 Recitals 14 and 15 of CACM.

(7)

 Recital 25 of CACM.