Explicit Cross-Border Participation in the CRM Decision Paper

The SEM Committee has today published its decision on the high-level policy decisions and principles for facilitating explicit cross-border participation in the SEM CRM. This follows the consultation that closed in March 2026.

The decisions contained within this paper will facilitate the future participation of foreign capacity providers in the SEM CRM, including French participants following the anticipated commissioning of the Celtic Interconnector in 2028, supporting compliance with EU requirements.

This Decision Paper sets out the SEM Committee’s high-level policy framework and guiding principles for explicit cross-border participation.  The framework has been designed to remain applicable under both the current CRM arrangements and potential future market developments arising from the CRM Development Programme (CRM 2.0).

Key decisions include:
•    Adoption of a dedicated foreign unit auction as a pre-selection stage, with successful foreign units subsequently competing alongside SEM units in a single main CRM auction.
•    Introduction of border-specific clearing prices.
•    Foreign capacity providers will be eligible for single-year capacity contracts, while allowing participation in both long-term and T-1 Capacity Auctions.
•    Application of the Existing Capacity Price Cap (ECPC) to foreign units, with eligibility for a Unit Specific Price Cap (USPC) process.
•    Use of the SEM Market Reference Price (MRP) for foreign units and application of the same relevant charges and obligations as domestic participants.

Implementation of explicit cross-border participation with France will be contingent on the successful commissioning and operation of the Celtic Interconnector and the establishment of the necessary governance, operational and data-sharing arrangements between the SEM TSOs and the French TSO. The next phase of implementation will focus on developing detailed market design and qualification arrangements, establishing monitoring processes, determining the methodology and assumptions underpinning the MEC calculation and progressing the necessary CMC Modifications.