4 March 2013 – Amsterdam / Brussels / Madrid / Oslo / Paris / Prague / Rome
The project partners of the Price Coupling of Regions (PCR) today welcome the Czech Market Operator OTE as a partner to the PCR Initiative. OTE is the seventh member of PCR, an initiative to facilitate the pan-European coupling of day-ahead power markets. OTE’s participation in the PCR Initiative is a clear signal of OTE´s commitment in European Integration activities.
As the Power Exchanges involved in the PCR Initiative aim to develop a wider cooperation across Europe, the Initiative is open to other European Power Exchanges wishing to join.
PCR is the Initiative to develop a single price coupling solution to be used to calculate electricity prices across Europe. This is crucial in order to achieve the overall EU target of a harmonised European electricity market, expected to increase liquidity, efficiency and social welfare.
PCR is based on three main principles: the use of a single algorithm, robust operation and individual Power Exchange accountability. The use of a single algorithm will give a fair and transparent determination of day-ahead electricity prices across Europe and has been developed by respecting the specific features of the various power markets across Europe. Consequently it will optimise the overall welfare and increase transparency.
The PCR system service enables the exchange of anonymous orders and area-to-area transmission capacities among the Power Exchanges in order to calculate area prices as well as other reference prices and area-to-area cross border-transmission flows for all involved bidding areas.
PCR has created a governance structure based on a PCR Co-Ownership Agreement and a PCR Co-Operation Agreement to govern the cooperation among the PCR Exchanges.
By jointly developing a pan-European market coupling algorithm and coordinating the governance structures between Power Exchanges, the Price Coupling of Regions Initiative enables the achievement of the European Day-Ahead Target Model, due by 2014. The Target Model is the pan-European price coupling solution fully described in the Capacity Allocation and Congestion Management Framework Guidelines published by the Agency for Cooperation of Energy Regulators (ACER).