Market Committee

ENTSO-E’s market activities are overseen by the ENTSO-E Market Committee (MC) chaired by Kjell Arne Barmsnes from Statnett, Norway and Peter Scheerer from TransnetBW, Germany as Vice-Chairman.
The Committee reports to the ENTSO-E Board and Assembly.

All activities of the ENTSO-E MC are supported by the ENTSO-E Market Secretariat team.

Any question related to these activities can be raised to market@entsoe.eu

What we do

Market issues are at the heart of promoting an effectively competitive internal market, delivering benefits to society. The objective of the Market Committee and associated Working Groups and projects is to implement the 3rd Internal Energy Market package and the Clean Energy Package as they provide the way to develop a well-functioning European electricity market.

The ENTSO-E Market activities are about:

• Developing a harmonised European market framework, notably through drafting market network codes/guidelines and methodologies;
• Coordinating implementation projects related to the different timeframes and within the different regions ; and
• Developing and maintaining tools which ensure transparency towards stakeholders.

How we are organised

Currently, there are six Working Groups (WGs) and three projects directly reporting to MC. WGs and projects are supported by our Secretariat team. You can learn more about WGs and projects below.

Projects have strong links with some WGs. Each project is described under the most relevant WG: digital archive and data formats for ACER data provision with WG Market Information & Transparency, and PT art. 16 and TF Technical report/Bidding Zone with WG Market Integration.

Future MC Meetings

MC Meeting Minutes

WG Market Integration

ENTSO-E’s Market Integration Working Group (MIWG) reports to the Market Committee (MC) and represents the focal point for work related to Capacity Allocation & Congestion Management, to Forward Capacity Allocation and part of the Clean Energy Package network codes.

The MIWG focus its work in support of the role and initiatives of ENTSO-E Market Committee toward the establishment of an integrated and seamless European electricity market. In doing so, the group is guided by the IEM objectives of competitiveness, efficiency, sustainability and security of supply.

The main tasks of the Market Integration Working Group are :

• Facilitate the All TSOs process, including ENTSO-E and non ENTSO-E members for developing the methodologies according to the FCA, CACM and CEP regulations.
• Develop methodologies and the corresponding amendments according to the requirements set in the FCA and CACM guidelines, and ensure their implementation through the Single Allocation Platform, Single Day Ahead Market, and the Single Intraday Market.
• Consult with stakeholders and interact with the regulatory authorities through the approval process
• Develop proposals for harmonisation of methodologies at pan-European level and coordinates the work done by the Capacity Calculation Regions;
• Applying both technical and business knowledge, provide feedback, commentary and guidance to the Market Committee on the project and operational deliverables.

MIWG works closely with the Working Group Ancillary Services and the Working Group Reporting on Market Integration to develop pan-European methodologies and regulatory monitoring reports as required by the European Network Codes and Clean Energy Package.

MIWG, together with ACER co-organises the Market European Stakeholder Committee (MESC) with the aim to complement, and not to replace, the legal obligations of stakeholder consultation and information included in the network codes during the implementation period.

Technical Report Task Force

According to IME Regulation Art.14 and CACM Art. 34, every three years, ENTSO-E shall report on structural congestions and other major physical congestions between and within bidding zones, including the location and frequency of such congestions, and, according to Article 14.2 of the Electricity Regulation (CEP70), an assessment of whether the cross-zonal trade capacity reached the linear trajectory pursuant to Article 15 or the minimum capacity pursuant to Article 16 of this Regulation.

The scope of work for the Task Force is to deliver the Technical Report no later than 9 months of letter’s receiving date. The Technical Report is an All TSOs project; by regulation, non-mandated countries can participate on voluntary basis.

The last Technical report has been published in November 2021:

• Read the ENTSO-E Bidding Zone Technical Report
• Check out the key findings of the report!

Bidding Zones Task Force

The Clean Energy Package, with the new Electricity Regulation triggers the development of common methodology and assumptions that are to be used in the bidding zone review process and alternative bidding zone configurations to be considered to be submitted to the relevant NRAs by all relevant TSOs within 3 months from CEP EIF (art.14(5)). The Board and the MC confirmed that for this first step, all TSOs are considered relevant in accordance with EC interpretation.

This project is a fundamental deliverable for ENTSO-E, as it impacts the future decision of bidding zone configuration, action plans and contributing to achieving requirements set out in art.16 of Internal Market for Electricity Regulation (70% cross-border capacity).

The main scope of work for the Bidding Zones Task Force is to coordinate the Bidding zone review process, facilitate stakeholder involvement, oversee the Locational Marginal Prices (LMP) calculation project, and prepare the final bidding zone review report.

Where do we are today in the process of the BZR?

• ACER issued on the 24 November 2020 the methodology and assumptions that are to be used in the bidding zone review process and for the alternative bidding zone configurations to be considered
• As requested in ACER methodology, the TSOs shall provide to ACER the Local Marginal Pricing (LMPs) in line with Article 11 of Annex I of the decision No 29/2020 by 31st October 2021 – Delay announced by the TSOs and ENTSO-E till February 2022
• ACER shall determine the alternative BZ configurations by 3 months from the delivery of the LMPs by the TSOs
• The TSOs shall start the BZ review process (that shall last 1 year) once ACER determine the alternative BZ configurations

Project Team Article 16

• The Clean Energy Package, with the new Electricity Regulation introduced a new regulatory framework for cross-border capacity allocation. Here, specifically art. 16 is of high relevance as it requires TSOs to provide minimum levels of available capacity for cross-zonal trade (so-called 70% rule).
• There is a need for TSOs and ENTSO-E to develop a consistent approach across the Regions on the implementation of CEP art 16 while the monitoring responsibilities stay on a national level at NRAs.
• TSOs overview of the 70% implementation in 2020 can be found in the Technical report published in November 2020.

WG Reporting on Market Integration

The main aim of the Reporting on Market Integration Working Group (RMI WG) is to enhance information exchange between Regions and ENTSO-E and follow-up the regional development of market integration related to the requirements stemmed from the electricity balancing (EB) regulation (Commission Regulation (EU) 2017/2195 of 23 November 2017), the capacity allocation and congestion management (CACM) regulation (Commission Regulation (EU) 2015/1222 of 24 July 2015) and forward capacity allocation (FCA) regulation (Commission Regulation (EU) 2016/1719 of 26 September 2016).

Since these regulations establish legal requirements for ENTSO-E to monitor the TSO’s implementation, the RMI WG is in charge of gathering information to assess CACM, FCA and EBGL implementation projects and report on the implementation. Consequently, the RMI WG works closely with Working Group Market Integration and Working Group Ancillary Services.

The published reports that assess the above mentioned obligations can be found on the Monitoring Reports page. Further information is available in the dedicated public ENTSO-E websites for CACM, FCA and EB.

WG Economic Framework

ENTSO-E’s Working Group Economic Framework (EF WG) reports to the Market Committee (MC) and represents the focal point for work related to elements of the EU Regulation, e.g. the Clean Energy Package, which relate to TSO tariffs, regulatory frameworks, and cost-sharing.

EFWG provides the appropriate tools to promote a consistent and sound economic framework for TSOs. The objectives include fair regulatory treatment for TSO revenues, costs and incentives and the establishment of consistent pricing structures and inter-TSO compensation mechanism. The Working Group is also in charge of producing regular overviews on transmission tariffs, congestion income, ITC and other relevant financial data.

Specific tasks of the EF WG include:

Inter-TSO Compensation (ITC)

• The ITC mechanism is a multiparty agreement concluded between ENTSO-E and, ENTSO-E member countries. It is designed to compensate parties for costs associated with losses resulting with hosting transits flows on networks and for the costs of hosting those flows.
• The ITC mechanism is governed by Article 49 of Regulation (EU) 2019/943. Commission Regulation (EU) 838/2010 contains further specifications of this ITC mechanism.
• According to the mandate, ENTSO-E is to publish the amount of losses incurred on national transmission systems and the perimeter fee.

European Transmission Tariffs

• Transmission tariffs are one of the key elements of the Internal Electricity Market, as highlighted by Article 18 of Regulation (EU) 2019/943.
• Different approaches coexist under the existing regulation for recovering costs related to electricity transmission such as costs for infrastructure, energy losses, ancillary services, system balancing and re-dispatching, or costs not directly related to TSO activities.
• While a direct comparison of tariff rates across countries is not possible, ENTSO-E’s annual Overview of Transmission Tariffs in Europe report takes into account the different components and alternative approaches across 36 countries to provide interested parties with an accessible and comparable overview of the transmission tariff levels and trends from year-to-year.
• list of European Transmission Tariffs reports:
  • ENTSO-E overview of Transmission Tariffs 2020
  • ENTSO-E overview of Transmission Tariffs 2019
  • ENTSO-E overview of Transmission Tariffs 2018
  • ENTSO-E overview of Transmission Tariffs 2017
  • ENTSO-E overview of Transmission Tariffs 2016
  • ENTSO-E overview of Transmission Tariffs 2015
  • ENTSO-E overview of Transmission Tariffs 2014
  • ENTSO-E overview of Transmission Tariffs 2013
  • ENTSO-E overview of Transmission Tariffs 2012
  • ENTSO-E overview of Transmission Tariffs 2011
  • ENTSO-E overview of Transmission Tariffs 2010
  • ENTSO-E overview of Transmission Tariffs 2009

Use of Congestion Income

• The congestion income collected by TSOs when allocating electricity cross-border capacity is used according to specific rules defined under Article 19 of Regulation (EU) 2019/943.
• These conditions are set out in a methodology approved by ACER in January 2021.

Support to the MC for addressing future challenges

• The EF WG assesses and contributes to the development of regulatory proposals, new market concepts, and TSO business models.
• The Financeability Paper

WG Market Design & Renewables

Working Group Market Design & RES (WG MD&RES) reports to the Market Committee (MC) and focuses on developing necessary positions supported with qualitative and quantitative analysis to ensure that appropriate designs and market mechanisms are developed. The WG MD&RES is notably tasked with promoting these positions and engaging with ACER, the EU Commission and major EU Stakeholders.

More specifically, the WG’s tasks include:

• Market Design
  • As the power system evolves, along with technological progress and policy goals, it is important to periodically assess if the design of electricity markets is future-proof. In this context, TSOs and ENTSO-E can play a pivotal role in detecting possible shortcomings of market design, anticipating challenges, and analysing possible solutions. The Working Group Market Design and RES is the main ENTSO-E reference group in this field and has drafted several policy papers in recent years on market design, capacity mechanisms, and demand response. A new paper on market design to ensure resource adequacy in 2030 and beyond is being prepared with the objective to publish it by end of 2020.
    • 2030 Vision Paper
    • Discussion paper on Options for possible Market Design evolutions in 2030 and related webinar
• Integration of renewable energy sources
  • The WG MD&RES is the focal point within ENTSO-E on the review of existing support schemes and market mechanisms for the large scale integration of renewable energy sources, including demand-side flexibility and storage. Energy efficiency measures impacting wholesale markets and grid operation also fall in the scope of work.
  • The WG MD&RES actively supports horizontal workstreams with relevance the integration of renewable energy resources, including the development of positions on offshore development, the drafting of papers on flexibility markets and TSO-DSO coordination (check out the Active System Management report and the latest webinar on Flexibility Markets), and the provision of input to relevant legislation (Clean Energy Package, Fit-for-55) to ensure the successful integration of renewable energy sources and the realisation of synergies across sectors.
• Delivery of the Methodologies and common rules for cross-border participation in capacity mechanisms on Capacity Mechanisms
  • Article 26 of the Regulation (EU) 2019/943 introduces an obligation to enable direct cross-border participation of capacity providers located in Member States which are electrical neighbours and lists common rules, methodologies and terms of operations which aim at facilitating the implementation of direct cross-border participation in capacity mechanisms.
  • These rules were developed and submitted by ENTSO-E, and subsequently approved by ACER in December 2020.

WG Ancillary Services

Working Group Ancillary Services (WG AS) reports to the Market Committee (MC) and focuses on defining and amending pan-European methodologies for electricity balancing markets as required in the Electricity Balancing Regulation (Commission Regulation (EU) 2017/2195 of 23 November 2017). The main tasks of the Working Group Ancillary Services include:

• Develop proposals for harmonisation of methodologies at the pan-European level;
• Draft amendment proposals for methodologies, related to the implementation frameworks for European balancing platforms (IN, aFRR, mFRR, RR), the pricing of balancing energy bids, TSO-TSO settlement of energy exchanges related to balancing, imbalance settlement harmonisation, cross-zonal capacity allocation and calculation and standard products for balancing capacity and other relevant methodologies;
• Consult with stakeholders and submit the proposals for the approval process by regulatory authorities and ACER, more information on Electricity balancing stakeholders group;
• Ensure that all relevant topics to MC are identified, evaluated and accordingly taken into account;
• Applying both technical and business knowledge, provide feedback, commentary and guidance to MC on the project and operational deliverables.

WG AS works closely with Working Group Market Integration and Working Group Reporting on Market Integration to develop pan-European methodologies and regulatory monitoring reports as required by the European Network Codes and Clean Energy Package.

Further information on the four balancing platforms (IN, aFRR, mFRR, RR), FCR Cooperation and the Nordic aFRR capacity markets can be found in the ENTSO-E website on the EB Regulation.

WG Market Information & Transparency

The objective of the Market Information and Transparency Working Group is to ensure a high level of transparency of market information and to develop, support and promote the Central Information Transparency Platform in compliance with Commission Regulation (EU) No 543/2013 of 14 June 2013 on submission and publication of data in electricity markets. The WG MIT will provide direction, oversight, and co-ordination of all transparency related projects.

ENTSO-E Transparency Platform in a nutshell:

• This is a significant step towards the implementation of the Internal Electricity Market (IEM), as the platform serves as a central information platform by publishing the market related data for all the market participants on a non-discriminatory basis across Europe;
• It reinforces the benefit of the Network Codes and enables more effective market monitoring; and
• It enhances competition in electricity markets by delivering information on a single platform, and thereby creating an efficient, liquid, and competitive wholesale markets.

More detailed description can be found on the ENTSO-E Transparency Platform.

ACER Data Exchange

In January 2018, ACER and ENTSO-E signed an Agreement on Data Provision for Network Codes and Guidelines Monitoring - General Provisions. The Agreement forms a framework for data sharing between both parties in accordance with Articles 8(8), 8(9) and 9(1) of Regulation (EC) 714/2009 as well as 82(4) and (5) of CACM.

The Agreement indicates data submission may be organised in two phases, i.e. interim and enduring phases. The necessity of these two phases is discussed between ACER and ENTSO-E during the discussion on the list of information. The interim phase may be needed in case there are data on the list that are related to provisions of the network codes or guidelines not yet in force or are related to methodologies, terms and conditions that are not yet developed and implemented at the start of the data submission. Once these requirements are fully implemented, the enduring phase would start at that level.

ENTSO-E is responsible to make available and store in digital format the data items win the agreed list of information elaborated in accordance with the network codes and guidelines that are to be provided by TSOs, and possibly other entities subject to the conditions set in the applicable network codes or guidelines and unless otherwise agreed with ACER.

The specific tasks for ENTSO-E include:

• Contacting and requesting relevant data from the ENTSO-E data providers,
• Drafting the definitions and relevant parameters applicable to the relevant data items, based on the list of information drawn up by ACER in cooperation with ENTSO-E,
• Consult ACER to find a common understanding on these definitions before IT implementation as well as on the format (types of archives, IT means, etc) when making data available to ACER, while dully taking into account ACER’s comments especially to ensure that the definitions allow ACER to fulfil its monitoring obligations,
• Ensure standardised formats and data integrity (i.e. consistency) in the data collection process, and
• Pursue, to the extent possible, data completeness and quality, and inform ACER on potential issues in this respect. However, ACER and ENTSO-E acknowledge that ENTSO-E has no appropriate enforcement powers with regard to ENTSO-E data providers and therefore ENTSO-E does not assume responsibilities for errors or shortcomings in the data provision which lie in the sphere of these data providers and whose rectification it cannot enforce.