Ensuring the market design initiative delivers: The need for a strong regulatory oversight role for ACER

This policy brief advocates for the empowerment of the Agency for Cooperation of Energy Regulators (ACER) to provide independent oversight of the EU energy market. It specifically recommends transferring the development of EU Network Codes from ENTSO-E to ACER, granting ACER oversight powers over a proposed EU-level body for distribution system operators (DSOs), and expanding ACER's role in monitoring adequacy assessments and cross-border transmission system operator (TSO) activities to prevent fossil fuel lock-in and ensure market competition.

• The relationship between ACER and ENTSO-E requires rebalancing because ACER currently lacks sufficient tools to hold the industry organisation accountable, despite ENTSO-E's significant influence over EU Network Codes and network planning. Proposed changes include transferring the development and monitoring of EU Network Codes to ACER and requiring ENTSO-E to follow ACER's recommendations.
• There is a risk that a proposed EU-level body for distribution system operators (DSOs) could be used to discriminate against prosumers or new technologies that threaten the bottom line of integrated undertakings. To mitigate this, ACER should be mandated to develop and monitor any codes or guidance on DSO issues rather than leaving this to the DSOs.
• ACER should be empowered to make binding decisions on European adequacy assessments and common conditions for capacity mechanisms. This is intended to ensure these mechanisms do not discriminate against demand side flexibility, interconnection, or intermittent generation, and to prevent the subsidisation or lock-in of fossil fuels.
• Stronger oversight of cross-border market activity by TSOs is necessary, particularly regarding the implementation of EU Network Codes by Regional Operational Centres (ROCs). Additionally, ACER's mandate under REMIT should be expanded to allow for real-time monitoring of regional markets.

APA

Roberts, J. (2016). Ensuring the market design initiative delivers: The need for a strong regulatory oversight role for ACER. ClientEarth. https://www.clientearth.org/media/4doj154e/2016-11-01-ensuring-the-market-design-initiative-delivers-the-need-for-a-strong-regulatory-oversight-role-for-acer-ce-en.pdf

Chicago

Roberts, Josh. Ensuring the market design initiative delivers: The need for a strong regulatory oversight role for ACER. ClientEarth, 2016. https://www.clientearth.org/media/4doj154e/2016-11-01-ensuring-the-market-design-initiative-delivers-the-need-for-a-strong-regulatory-oversight-role-for-acer-ce-en.pdf.

Wikipedia

{{cite report |last1=Roberts |first1=Josh |title=Ensuring the market design initiative delivers: The need for a strong regulatory oversight role for ACER |publisher=ClientEarth |date=November 2016 |url=https://www.clientearth.org/media/4doj154e/2016-11-01-ensuring-the-market-design-initiative-delivers-the-need-for-a-strong-regulatory-oversight-role-for-acer-ce-en.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{roberts2016ensuring, author = {Roberts, Josh}, title = {{Ensuring the market design initiative delivers: The need for a strong regulatory oversight role for ACER}}, institution = {ClientEarth}, year = {2016}, month = nov, url = {https://www.clientearth.org/media/4doj154e/2016-11-01-ensuring-the-market-design-initiative-delivers-the-need-for-a-strong-regulatory-oversight-role-for-acer-ce-en.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }