The European electricity market is currently divided into seven regions in order to enhance the Internal European Electricity Market through the promotion of market development, primarily at the regional level. One of these regions is central and eastern Europe (CEE), which includes Austria, the Czech Republic, Germany, Hungary, Poland, Slovakia and Slovenia.

The joint CAO will distribute yearly, monthly, and daily rights for cross-border electricity transmission in the CEE region on behalf of the eight transmission-system operators. The distribution process is to be founded on flow-based methodology in order to obtain a more accurate representation of electrical power flows associated with the use of transmission rights.

The joint CAO for the central and eastern European region, the Central Allocation Office GmbH, will start operation in Freising, Germany, this year, replacing the former bilateral and multilateral agreements on energy transmission. (MTI – Econews)