Legislation
  • Electricity Network Codes & Guidelines

Capacity Allocation and Congestion Management Guideline (CACM GL)

The CACM GL establishes rules for day-ahead and intraday market coupling across the EU. It is central to the operation of single electricity markets and determines how transmission capacity is allocated between bidding zones.

 

It sets out rules on:

  • Market coupling algorithms and procedures (EUPHEMIA, SIDC)
  • Capacity calculation methodologies and cross-zonal capacity optimisation
  • Allocation of long-term transmission rights (LTTRs)
  • Congestion income distribution and fallback procedures

 

CACM GL governs how capacity is allocated and traded in short-term markets. It ensures efficient price formation and enables cross-border participation. Traders rely on market coupling mechanisms to access liquidity and price convergence opportunities. CACM reforms influence day-ahead pricing structure, congestion rents, and the efficiency of hedging strategies using LTTRs.