National transmission system operators in an international electricity market
21 June 2021
The Commission concluded in both cases that the conduct by the TSOs could represent an abuse of dominant position in violation of EU competition rules.2 The high degree of ownership concentration in electricity markets, the price insensitivity of demand, the structured auction format for wholesale electricity trade, and the availability of detailed and frequent market data, have generated a vast t. [...] The fundamental characteristic of this design is that the volume of international trade cleared in the day-ahead market represents a binding restriction on the cross-border exchange of electricity in the balancing market. [...] Specifically, the price difference in the balancing market equals the (inverse of) the semi-elasticity of the trade adjustment payment. [...] 11 The feasible electricity trade from A to B in the day-ahead market is contained in the interval [−k̄, k̄], where k̄ ≥ 0 is the export capacity from A to B, and k̄ ≥ 0 is the export capacity from B to A in the day-ahead market. [...] The funda- mental characteristic of this design is that the volume T̄ (k̄) of trade between A and B cleared in the day-ahead market represents a binding restriction on the exchange of electricity in the balancing market.