FIA has responded to the Department of Energy & Climate Change (DECC) in the UK on proposals for the monitoring and enforcement of nominated electricity market operators (NEMO) under Commission Regulation (EU) 2015/1222 of 24 July 2015, establishing a guideline on capacity allocation and congestion management (CACM). CACM came into force on 14 August 2015. It sets out provisions for coupling of the day–ahead and intra-day electricity markets across the European Community. An integrated EU wholesale electricity market provides a number of important benefits, including increased security of supply and increased competitiveness. To achieve market coupling, the Regulation requires the creation of harmonised trading arrangements across the interconnectors which link the transmission systems in different Member States. The trading arrangements establish a capacity allocation and congestion management method where interconnection capacity and electricity is sold at the same time in one daily day-ahead auction and then continuously during the intra-day period. The aim is to maximise the efficient use of interconnection and to ensure that electricity flows follow prices.
