One step closer to completing the internal European electricity market
Today, the integration of the day-ahead markets for electricity in the Northwest European region has been completed. In the day-ahead market, market participants are able to buy electricity on the day-ahead market for example today and have it delivered tomorrow.
From volume coupling to price coupling
Until February 4, 2014, the Dutch day-ahead market had been integrated with the Scandinavian market through volume coupling, which meant that, when trading electricity between Norway and the Netherlands over the NorNed cable, the market price used to be calculated on the basis of the volume of electricity (the exchanged transmission volumes). This is not the best option. Starting today, prices can be calculated much more accurately. The Norwegian and Dutch electricity markets are now linked through price coupling. Price coupling applies to the NorNed cable for the North European region, and to the BritNed cable for an integrated day-ahead market in Great Britain.
In October 2013, ACM already agreed to the required amendments to the procedures for the day-ahead market for electricity.
The European Commission wishes to complete the internal European market for electricity by the end of the year. With the introduction of price coupling in Northwest Europe, a major step has been taken towards realizing that goal.