Decision on approach to cost sharing and cost recovery under the Capacity Allocation and Congestion Management (CACM) Regulation
Decision
- Publication date
- Industry sector
- Generation and Wholesale Market
This letter sets out our decision with respect to how costs related to the CACM Regulation should be shared between relevant parties and the appropriate mechanism for recovery of such costs in GB .
The CACM Regulation is a central component of the Internal Energy Market, as set out in the EU Third Energy Package. It aims to maximise the efficient use of interconnection and facilitate greater cross-border electricity trade. It seeks to do this by introducing rules for market coupling and providing the legal framework for a single, modern and more efficient capacity allocation and congestion management system in both the day-ahead and intraday timeframe. Market coupling should ensure that power is produced where it is most efficient and transported to areas of consumption where it is most valued.