Public consultation pursuant to Art. 12 of Commission Regulation (EU) 1222/2015 (hereinafter CACM Regulation) on Harmonized maximum and minimum clearing prices for single day-ahead coupling and for single intraday coupling

24 May 2022

Consultation Overview
The methodologies in accordance with Art. 41(2) and Art. 54 (2) of CACM determining the harmonized minimum and maximum clearing prices (HMMCP) to be applied in all bidding zones for single day-ahead coupling and for single intraday coupling respectively, were last approved by ACER on 14 November 2017. There have been no amendments to the two methodologies since as no need to amend has been identified in previous review. This is a joint consultation from all NEMOs.

According to Article 4 (3) for both the HMMCP methodologies respectively, ‘the NEMOs shall, at least every two years, reassess the HMMCP, share this assessment with all market participants and consult it in the relevant stakeholder forums organized in accordance with Article 11 of the CACM Regulation.’

The harmonized maximum clearing price for SDAC was raised by 1000 EUR/MWh up to 4000 EUR/MWh as the relevant threshold was recently reached in one bidding zone. Indeed, the current market situation calls for a more thorough review of the methodology. Some market participants already expressed some ideas on maximum and minimum prices for SDAC and SIDC.

The implementation of Intraday Auctions (IDAs) also requires to introduce a definition of HMMCP for IDAs into the HMMCP methodology for SIDC.

Out of scope of the consultation:

• the principle that maximum and minimum clearing prices remain harmonized in all bidding zones,
• the principle that a dynamic increase of the maximum and minimum clearing prices shall be in place.

Contact information
Name: Lucie Rysava
Job Title: Secretary to the All NEMO Committee
Phone: +420 724 645 988
Email: ,

Dates
Start: 24 May 2022
End: 15 July 2022
Results expected: 11 October 2022

Related links
EUR-Lex - 32015R1222 - EN - EUR-Lex (europa.eu)
ACER DA MAX-MIN Annex I (nemo-committee.eu)
ACER ID MAX-MIN Annex I (nemo-committee.eu)

What happens next
During the months of June and July, the responses will be reviewed and in accordance with Article 12.3 of CACM GL duly considered in the process of revising and proposing amendments to the HMMCP methodologies before sent to ACER for review and approval.
Audience: Market participants, TSOs and NRAs.
Interests: CACM GL related to SDAC and SIDC.

Questions

1. Name
2. Email
3. Organisation
4. When integrating HMMCP for Intraday Auctions, NEMOs propose to follow the same principles as for SDAC. This means a differentiation from HMMCP for the SIDC continuous. What is your view on that differentiation, and do you have a view on what maximum and minimum clearing price should be applied for SIDC IDAs and what mechanism for possible upward or downward adjustment of that maximum and minimum clearing price should be applied?
5. The current methodologies describe a dynamic process to increase the maximum clearing price if market prices reach certain thresholds. NEMOs would like to consult on the possibility to also implement a decrease of the maximum clearing price after a period when no thresholds have been exceeded and the maximum clearing price shows to be unnecessarily high.
6. NEMOs would like to consult on the duration of the transition period between detection of the threshold and entry into force of the new price cap. Shall this be shortened, increased, or maintained to be 5 weeks after the triggering threshold (60% of max clearing price) has been reached?
7. Do you consider the current approach to increase the maximum clearing price in steps of EUR 1000,-- still adequate?
8. Do you think that the event that the clearing price exceeds a value of 60 percent of the harmonised maximum clearing price for SDAC in one market time unit of a day in single bidding zone is a sufficient trigger to increase the harmonised maximum clearing price for SDAC?  For example: to instead as the basis for triggering a maximum clearing price increase to be given by a requirement that the threshold has been exceeded on multiple different days (e.g. separate SDAC trading days) within a given period.
9. HMMCP methodologies to describe also an automatic extension of the minimum clearing price when a certain threshold is reached?
10. Any other views regarding the HMMCP methodologies for SDAC and SIDC?

To participate in the consultations you should respond to the above questions using the All NEMO Committee website.