EU energy governance Contents

Appendix 5: Glossary of Terms


The Agency for the Co-operation of Energy Regulators. ACER co-ordinates the work of national regulatory authorities and monitors and reports on developments in European energy markets.

Capacity adequacy assessments

The annual assessment conducted by OfGem to forecast the UK’s energy security supply.

Capacity Markets

A long–term wholesale market that assures electricity supply availability where normal, free-market pricing would not incentivise supply. They are also known as Capacity Mechanisms (see Box 2).

Carbon Capture and Storage

Technology that captures waste Carbon Dioxide emissions produced by fossil fuels in energy production, preventing it from entering the atmosphere.

The Committee on Climate Change

An independent, statutory body established under the Climate Change Act 2008 to advise the UK Government and devolved administrations on emissions targets and report to Parliament on progress made to reduce greenhouse gas emissions and preparing for climate change.

Common network codes

EU-wide technical rules used to manage cross-border electricity flow.


The reduction and removal of Carbon Dioxide emissions from the energy system, potentially through the increased exploitation of low-carbon energy sources, and through technologies such as carbon capture and storage (CCS).

Electricity Market Reform

The UK Government’s programme to respond to the energy ‘trilemma’ of decarbonisation, security of supply, and value for money for the consumer. It is made up of the Capacity Mechanism, Contracts for Difference, the Carbon Price Floor and the Emissions Performance Standard.

Energy Governance Framework

The framework by which the EU institutions and Member States interact in order to meet EU-wide and national energy policy objectives.

Energy Union

The European Commission’ strategy to work with Member States to provide secure, sustainable, competitive energy.


The physical linking of electricity transmission systems across borders so that cross-border trade in electricity can take place.

National Energy and Climate Plans

Under the EU’s 2030 Framework for climate and energy, each Member State must produce a National Energy and Climate Plan for 2021–2030 which feeds into long-term energy policy objectives.

REFIT Programme

The Commission’s Regulatory Fitness and Performance programme to streamline existing legislation and reduce regulatory costs.

The Renewable Energy Directive

The EU Directive establishing an overall policy for the production and promotion of renewable energy.


Small and medium enterprises. In the UK, these are defined as having no more than 250 employees, an annual turnover of less than £25m, and gross assets of less than £12.5m.

Stress events

Events where energy demand exceeds supply in particular localities (see Box 3).

Transmission System Operators

The Commission term for entities entrusted with transmitting energy from source to user thorough fixed infrastructure such as power lines for electricity, or gas lines for natural gas.

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