This document illustrates the result of a preliminary activity regarding the conformity assessment process of Euphemia, the algorithm for the resolution of the Single Day-ahead Coupling National Markets owned by the Electricity Market Operators, to the current regulation of the energy sector according to the criteria defined by ACER – Agency for the Cooperation of Energy Regulators – and by the National Energy Regulatory Authorities – NRAs.

This step defines the methods by which the correspondence of the algorithms under analysis to each of the established criteria can be evaluated.

ACER and NRAs are responsible for assessing whether the algorithms for clearing electricity markets comply with the rules defined by the European Commission and the European Parliament, in particular those contained in the documents “ REGULATION (EU) No. 1227/2011 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 25 October 2011 on wholesale energy market integrity and transparency ”, “ COMMISSION REGULATION (EU) No 543/2013 of 14 June 2013 on submission and publication of data in electricity markets and amending Annex I to Regulation (EC) No 714/2009 of the European Parliament and of the Council ” and “ COMMISSION REGULATION (EU) 2015/1222 of 24 July 2015 establishing a guideline on capacity allocation and congestion management ”, the latter also known as the CACM Regulation (acronym for Capacity Allocation and Congestion Management ).

With this aim, in agreement with the NRAs, ACER has drafted the document “ Methodology for the price coupling algorithm, the continuous trading matching algorithm and the intraday auction algorithm ” which

defines, as mentioned, the characteristics that the aforementioned algorithms must possess in order to comply with the current regulation. In particular, Annex I to this last document contains precise criteria that the resolution algorithms must satisfy and according to which their compliance is determined.

Once these criteria have been defined, ACER and the NRAs must begin the conformity assessment procedures of the algorithms currently used – in particular Euphemia, the algorithm for the resolution of the Single Day-ahead Coupling National Markets owned by the Electricity Market Operators (Nominated Energy Market Operators or NEMO). For this activity, they may rely on third parties for consultation: among these, RSE has been identified.