ACER Decides On Harmonized Maximum And Minimum Clearing Prices Used For Market Coupling

ACER published today two decisions on the harmonized maximum and minimum clearing prices for single day-ahead and intraday coupling in accordance with the EU regulation on Capacity Allocation & Congestion Management (CACM). Harmonized prices will allow for a free price formation in the market coupling, therefore make the markets more efficient from the economic point of view.

ACER set the maximum and minimum clearing price for single day-ahead coupling to 3000 and ‑500 EUR/MWh respectively, whereas for the single intraday coupling to 9999 and -9999 EUR/MWh respectively. The decisions also established a very dynamic automatic increase mechanism, such that the maximum price will increase each time the day ahead clearing prices would exceed 60% of the applicable maximum price. In ACER’s view this effectively facilitates free price formation principles and is able to substitute the value of lost load.

You can access the decisions here.
 
Background Information
 
An Agency’s Decision was requested on 25 July 2017 for the day-ahead timeframe and on 2 August 2017 for intraday timeframe by the Chair of the Energy Regulators’ Forum (i.e. the regulatory authorities’ platform for consultation and cooperation) after the regulatory authorities, despite their best endeavours, could not reach a unanimous decision on the day-ahead proposal. Later, for the sake of consistency between the two highly connected proposals, all regulatory authorities referred the intraday proposal to the Agency as well.