At the Florence Forum in December 2009, it was agreed that ERGEG will continue with the work towards framework guidelines on capacity allocation and congestion management in electricity transmission networks, starting with an impact assessment.

It is within this context, that ERGEG has been invited by the EU Commission, in a letter of 26 March 2010, to undertake the role envisaged for the Agency for the Co-operation of Energy Regulators and prepare a Framework Guideline on Capacity Allocation and Congestion Management.

The Framework Guideline will be developed by ERGEG with input from an Ad Hoc Advisory Group of Stakeholders (AHAG) that was established as a result of an agreement reached by ERGEG and the European Commission has been giving advice in the course of preparing the Initial Impact Assessment. The Framework Guideline will be subject to public consultation and a public workshop in autumn 2010.

The goal of the capacity allocation and congestion management regime is to establish one truly integrated, competitive and efficient European Internal Electricity Market. This should be achieved by ensuring optimal utilization of the transmission grid and cross-border interconnection. As a result, this should maximise welfare and benefit the European electricity customers.

The draft framework guideline will address three timeframes of capacity allocation: forward market, day-ahead market and intraday market.
Additionally it will address the capacity calculation as it underpins all three timeframes and is crucial to the issue of capacity allocation and congestion management.

Balancing (as well as governance) issues that are related to the solution for the day-ahead and eventually for the intraday market coupling, are planned to be addressed by a separate framework guideline.