European Market

Committed to Europe

Concern over energy in Europe lies at the very heart of today’s European Union, with the signing of the treaties establishing the European Coal and Steel Community (ECSC) in 1951 and the European Atomic Energy Community (EURATOM) in 1957.

As regards the Internal Energy Market, between 1996 and 2009 three “packages” of legislative measures were introduced with a view to liberalising the EU’s domestic electricity and natural gas markets and marshalling their integration toward a true internal market.

In February 2011, the Heads of State and Government agreed that “The internal market should be completed by 2014 so as to allow gas and electricity to flow freely”. The European Council thereby reinforced the political support for an effective integration process, providing a specific date, and accelerated the implementation of the aforementioned “Third Package”.

Within this context, and according to the road maps drawn up towards the end of 2011 by the Agency for the Cooperation of Energy Regulators (ACER) and the European Commission, with the backing of all stakeholders, the ensuing years have witnessed intense cooperation between market operators as regards the following projects:

  • The coupling of Europe’s daily markets with the same algorithm for the matching of purchase-sale bids throughout the whole of the EU; known as “Price Coupling of Regions” (PCR) and,
  • The launch of a pan-European platform that provides for the establishment of a continuous market (with implicit allocation of cross-border capacity) on the intraday horizon, compatible with holding intraday auctions at sub-regional level, as in the case of MIBEL, where these markets have much higher liquidity than throughout the rest of Europe.