Market Coupling and the Capacity Allocation and Congestion Management Regulation: New Functions for Power Exchanges in a Better Regulatory Environment?

This article assesses the manner in which Commission Regulation (EU) 2015/1222 of 24 July 2015 establishing a guideline on capacity allocation and congestion management ("CACM") alters the legal context within which power exchanges ("PXs") perform their activities related to market coupling. By submitting the cooperation among the newly-introduced NEMO-entities, and between these NEMOs and TSOs, regarding market coupling to a new set of rules, CACM affects the market coupling activities of PXs in different ways. This article in particular examines from the power exchanges' perspective (1) the need for the increased regulation introduced by CACM, (2) how CACM affects their activities in the context of market coupling and (3) whether CACM contributes to a better governance of market coupling.