‘individual grid model’ means a data set describing power system characteristics (generation, load and grid topology) and related rules to change these characteristics during capacity calculation, prepared by the responsible TSOs, to be merged with other individual grid model components in order to create the common grid model;

‘common grid model’ means a Union-wide data set agreed between various TSOs describing the main characteristic of the power system (generation, loads and grid topology) and rules for changing these characteristics during the capacity calculation process;

‘capacity calculation region’ means the geographic area in which coordinated capacity calculation is applied;

‘scenario’ means the forecasted status of the power system for a given time-frame;

‘net position’ means the netted sum of electricity exports and imports for each market time unit for a bidding zone;

‘allocation constraints’ means the constraints to be respected during capacity allocation to maintain the transmission system within operational security limits and have not been translated into cross-zonal capacity or that are needed to increase the efficiency of capacity allocation;

‘operational security limits’ means the acceptable operating boundaries for secure grid operation such as thermal limits, voltage limits, short-circuit current limits, frequency and dynamic stability limits;

‘coordinated net transmission capacity approach’ means the capacity calculation method based on the principle of assessing and defining ex ante a maximum energy exchange between adjacent bidding zones;

‘flow-based approach’ means a capacity calculation method in which energy exchanges between bidding zones are limited by power transfer distribution factors and available margins on critical network elements;

‘contingency’ means the identified and possible or already occurred fault of an element, including not only the transmission system elements, but also significant grid users and distribution network elements if relevant for the transmission system operational security;

‘coordinated capacity calculator’ means the entity or entities with the task of calculating transmission capacity, at regional level or above;

‘generation shift key’ means a method of translating a net position change of a given bidding zone into estimated specific injection increases or decreases in the common grid model;

‘remedial action’ means any measure applied by a TSO or several TSOs, manually or automatically, in order to maintain operational security;

‘reliability margin’ means the reduction of cross-zonal capacity to cover the uncertainties within capacity calculation;

‘market time’ means central European summer time or central European time, whichever is in effect;

‘congestion income’ means the revenues received as a result of capacity allocation;

‘market congestion’ means a situation in which the economic surplus for single day-ahead or intraday coupling has been limited by cross-zonal capacity or allocation constraints;

‘physical congestion’ means any network situation where forecasted or realised power flows violate the thermal limits of the elements of the grid and voltage stability or the angle stability limits of the power system;

‘structural congestion’ means congestion in the transmission system that can be unambiguously defined, is predictable, is geographically stable over time and is frequently reoccurring under normal power system conditions;

‘matching’ means the trading mode through which sell orders are assigned to appropriate buy orders to ensure the maximisation of economic surplus for single day-ahead or intraday coupling;

‘order’ means an intention to purchase or sell energy or capacity expressed by a market participant subject to specified execution conditions;

‘matched orders’ means all buy and sell orders matched by the price coupling algorithm or the continuous trade matching algorithm;

‘nominated electricity market operator (NEMO)’ means an entity designated by the competent authority to perform tasks related to single day-ahead or single intraday coupling;

‘shared order book’ means a module in the continuous intraday coupling system collecting all matchable orders from the NEMOs participating in single intraday coupling and performing continuous matching of those orders;

‘trade’ means one or more matched orders;

‘single day-ahead coupling’ means the auctioning process where collected orders are matched and cross-zonal capacity is allocated simultaneously for different bidding zones in the day-ahead market;

‘single intraday coupling’ means the continuous process where collected orders are matched and cross-zonal capacity is allocated simultaneously for different bidding zones in the intraday market;

‘price coupling algorithm’ means the algorithm used in single day-ahead coupling for simultaneously matching orders and allocating cross-zonal capacities;

‘continuous trading matching algorithm’ means the algorithm used in single intraday coupling for matching orders and allocating cross-zonal capacities continuously;

‘market coupling operator (MCO) function’ means the task of matching orders from the day-ahead and intraday markets for different bidding zones and simultaneously allocating cross-zonal capacities;

‘clearing price’ means the price determined by matching the highest accepted selling order and the lowest accepted buying order in the electricity market;

‘scheduled exchange’ means an electricity transfer scheduled between geographic areas, for each market time unit and for a given direction;

‘scheduled exchange calculator’ means the entity or entities with the task of calculating scheduled exchanges;

‘day-ahead market time-frame’ means the time-frame of the electricity market until the day-ahead market gate closure time, where, for each market time unit, products are traded the day prior to delivery;

‘day-ahead firmness deadline’ means the point in time after which cross-zonal capacity becomes firm;

‘day-ahead market gate closure time’ means the point in time until which orders are accepted in the day-ahead market;

‘intraday market time-frame’ means the time-frame of the electricity market after intraday cross-zonal gate opening time and before intraday cross-zonal gate closure time, where for each market time unit, products are traded prior to the delivery of the traded products;

‘intraday cross-zonal gate opening time’ means the point in time when cross-zonal capacity between bidding zones is released for a given market time unit and a given bidding zone border;

‘intraday cross-zonal gate closure time’ means the point in time where cross-zonal capacity allocation is no longer permitted for a given market time unit;

‘capacity management module’ means a system containing up-to-date information on available cross-zonal capacity for the purpose of allocating intra-day cross-zonal capacity;

‘non-standard intraday product’ means a product for continuous intraday coupling not for constant energy delivery or for a period exceeding one market time unit with specific characteristics designed to reflect system operation practices or market needs, for example orders covering multiple market time units or products reflecting production unit start-up costs;

‘central counter party’ means the entity or entities with the task of entering into contracts with market participants, by novation of the contracts resulting from the matching process, and of organising the transfer of net positions resulting from capacity allocation with other central counter parties or shipping agents;

‘shipping agent’ means the entity or entities with the task of transferring net positions between different central counter parties;

‘firmness’ means a guarantee that cross-zonal capacity rights will remain unchanged and that a compensation is paid if they are nevertheless changed;

‘force majeure’ means any unforeseeable or unusual event or situation beyond the reasonable control of a TSO, and not due to a fault of the TSO, which cannot be avoided or overcome with reasonable foresight and diligence, which cannot be solved by measures which are from a technical, financial or economic point of view reasonably possible for the TSO, which has actually happened and is objectively verifiable, and which makes it impossible for the TSO to fulfil, temporarily or permanently, its obligations in accordance with this Regulation;

‘economic surplus for the single day-ahead or intraday coupling’ means the sum of (i) the supplier surplus for the single day-ahead or intraday coupling for the relevant time period, (ii) the consumer surplus for the single day-ahead or intraday coupling, (iii) the congestion income and (iv) other related costs and benefits where these increase economic efficiency for the relevant time period, supplier and consumer surplus being the difference between the accepted orders and the clearing price per energy unit multiplied by the volume of energy of the orders.

promoting effective competition in the generation, trading and supply of electricity;

ensuring optimal use of the transmission infrastructure;

ensuring operational security;

optimising the calculation and allocation of cross-zonal capacity;

ensuring fair and non-discriminatory treatment of TSOs, NEMOs, the Agency, regulatory authorities and market participants;

ensuring and enhancing the transparency and reliability of information;

contributing to the efficient long-term operation and development of the electricity transmission system and electricity sector in the Union;

respecting the need for a fair and orderly market and fair and orderly price formation;

creating a level playing field for NEMOs;

providing non-discriminatory access to cross-zonal capacity.

implementing the MCO functions set out in paragraph 2 in coordination with other NEMOs;

establishing collectively the requirements for the single day-ahead and intraday coupling, requirements for MCO functions and the price coupling algorithm with respect to all matters related to electricity market functioning in accordance with paragraph 2 of this Article, and Articles 36 and 37;

determining maximum and minimum prices in accordance with Articles 41 and 54;

making anonymous and sharing the received order information necessary to perform the MCO functions provided for in paragraph 2 of this Article and Articles 40 and 53;

assessing the results calculated by the MCO functions set out in paragraph 2 of this Article allocating the orders based on these results, validating the results as final if they are considered correct and taking responsibility for them in accordance with Articles 48 and 60;

informing the market participants on the results of their orders in accordance with Articles 48 and 60;

acting as central counter parties for clearing and settlement of the exchange of energy resulting from single day-ahead and intraday coupling in accordance with Article 68(3);

establishing jointly with relevant NEMOs and TSOs back-up procedures for national or regional market operation in accordance with Article 36(3) if no results are available from the MCO functions in accordance with Article 39(2), taking account of fallback procedures provided for in Article 44;

jointly providing single day-ahead and intraday coupling cost forecasts and cost information to competent regulatory authorities and TSOs where NEMO costs for establishing, amending and operating single day-ahead and intraday coupling are to be covered by the concerned TSOs' contribution in accordance with Articles 75 to 77 and Article 80;

Where applicable, in accordance with Article 45 and 57, coordinate with TSOs to establish arrangements concerning more than one NEMO within a bidding zone and perform single day-ahead and/or intraday coupling in line with the approved arrangements.