Support in preparation of CACM amendments related to the Market Coupling Operation governance

The electricity network codes and guidelines create a common and detailed framework for the European internal electricity market. Among them, the Regulation 2015/1222 establishing a guideline on capacity allocation and congestion management (‘CACM’) sets the rules for electricity exchanges across EU bidding zones, and the definition of electricity wholesale prices. The Commission is starting the process to review and amend some elements of this Regulation.

The CACM Regulation has established the basis for the construction of the pan-EU electricity markets in day-ahead and intraday timeframe, through one of its key element: the market coupling. Market coupling is the core of the electricity market as it centrally and simultaneously determines the electricity prices in all EU bidding zones which are coupled and optimizes the use of the cross-border transmission lines by implicitly allocating their capacity within the process.

The implementation of market coupling across Europe, in both day-ahead and intraday timeframe, is an obligation stemming from the CACM regulation. It is still ongoing but should be leading to a full market coupling among EU member states in 2021. Nonetheless, many challenges remain. This concerns in particular the governance of the market coupling operation (‘MCO governance’).

MCO governance is a key element to ensure efficient implementation of the CACM objectives on the long run, and proper market functioning. The operation of the Market Coupling is a natural monopoly, but is today operated by various entities, many of which also having commercial interest (such as electricity power exchanges); this situation has raised several issues during the CACM implementation so far.

In the framework of the review of CACM Regulation, and based on elements discussed with NRAs, ACER and stakeholders, the Commission needs to assess the possible options for governing the market coupling operation (‘MCO governance’), with a clear analysis of parties involved, how they work together, which are the degrees of centralisation, how the regulated and unregulated parts are separated, and what are the potential impacts of each option (positive and negative). This would provide a support for decision making as regards to the amendments the Commission could propose ultimately. The subject for this call for tenders is providing support to assessing the different potential models for MCO governance.

Contractors will be required to provide the services in close coordination with the Commission services and in a time span of max. 4 months.

Maximum amount: 50.000 €

Economic operators who do not express their interest before the deadline will not be invited to submit an offer. The latter restriction will not apply to the minimum five economic operators directly invited by the Commission.

Deadline for the expression of interest is 18 May 2021 at 24:00

Please express your interest by e-mail to this address: ENER-C3-CALLS-NEWec [dot] europa [dot] eu (ENER-C3-CALLS-NEW[at]ec[dot]europa[dot]eu)