ACER methodological study to measure barriers to efficient price formation and easy market entry in EU electricity wholesale markets

This methodological study was prepared to measure barriers to efficient price formation and easy market entry and participation for new and small players in the EU electricity wholesale markets. The study proposes a set of indicators and a methodology that will enable ACER to fulfil more effectively its new monitoring responsibilities set by the Clean Energy Package.

The report describes:

• ​13 barriers to efficient price formation and nine barriers to easy market entry and participation for new entrants and small actors.
• More than 70 qualitative and quantitative indicators to measure these barriers.
• The methodology to combine these indicators and create two composite indicators:
  • ACER index on efficient price formation
  • ACER index on easy market entry for new players and small actors
• A pilot study conducted to test the data collection process, as well as the robustness of the composite indicators´ calculation tool.

The study has been conducted with the support of the consultancy DNV.