Since electricity needs to be transported over networks, non-discriminatory access to the networks and cross-border trade over interconnections between control areas is a vital precondition for establishing a competitive Internal Energy Market in the EU. As interconnection capacity is often scarce and it is not always feasible to accommodate the physical flows resulting from commercial transactions, the functioning of electricity markets is strongly dependent on how interconnection capacity is allocated and how congestion in the networks is managed.

Although Regulation (EC) No 1228/2003 (First Regulation) and the annexed Congestion Management Guidelines 770/2006/EC (First CM Guidelines) contributed significantly to improved capacity allocation and congestion management (CACM), the integration of national markets by means of efficient and effective use of interconnection capacity has not been fully achieved. The 3rd Package defines a new European regulatory framework with framework guidelines and related codes to address certain topic areas for the integration of EU electricity and gas markets, enabling cross-border trade and competition to develop across EU energy markets. In this context, ERGEG has been invited by the European Commission to draft a framework guideline on CACM for electricity, to serve as input to the new Agency for the Cooperation of Energy Regulators (ACER), which becomes fully operational in March 2011.

ERGEG invites all interested parties to provide comments to the consultation paper (framework guidelines) – and in particular the 18 questions in the accompanying cover note. Any comments should be received by 10 November 2010 and should be sent by email to fg_electricityCACM@ergeg.org.

Following the public consultation period, ERGEG will publish all comments received from stakeholders. If a respondent would like ERGEG to treat their contribution with confidentiality then this must be explicitly mentioned in their submission.

Any questions on these documents should in the first instance be directed to:

Mrs. Fay Geitona
CEER Secretary General
Email: fay.geitona@ceer.eu
Tel. +32 2 788 73 30
Fax +32 2 788 73 50