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Chapter 5 · Single day-ahead coupling  ›  Section 1 · The price coupling algorithm › Article 38

Objectives of the price coupling algorithm

1.   The price coupling algorithm shall produce the results set out in Article 39(2), in a manner which:

(a)

aims at maximising economic surplus for single day-ahead coupling for the price-coupled region for the next trading day;

(b)

uses the marginal pricing principle according to which all accepted bids will have the same price per bidding zone per market time unit;

(c)

facilitates efficient price formation;

(d)

respects cross-zonal capacity and allocation constraints;

(e)

is repeatable and scalable.

2.   The price coupling algorithm shall be developed in such a way that it would be possible to apply it to a larger or smaller number of bidding zones.

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