The Commission for Energy Regulation (CER) and the Northern Ireland Authority for Utility Regulation (or Utility Regulator (UR)), known as the Regulatory Authorities (or RAs) have developed an all-island Single Electricity Market (SEM) which came into operation on 1st November 2007. European Heads of State and Governments have pledged to create an internal market for electricity by 2014. Throughout the European Union, national electricity markets are being reviewed to align with a common European ‘Target Model' for cross border capacity allocation and congestion management upon which the Internal Electricity Market is to be founded. Detailed rules that give legal effect to this Target Model are expected to be binding on all EU internal borders by 2014.

The Single Electricity Market (SEM) operating in Ireland and Northern Ireland will require significant modifications to its high level design to implement the Target Model. The magnitude of change required for the SEM to achieve this is considered to be greater than for most other markets in Europe owing to its centralised, gross mandatory pool design which differs in a number of key respects from the prevailing market design in most other European Member States. At its February 2013 meeting, following discussions with respective Government departments, the SEM Committee approved a Decision Paper confirming the next steps in the project to implement the target model in SEM. This was published on 15th February 2013. The SEM Regulatory Authorities (RAs) now invites tenders for experienced electricity market design consultants to advise the RAs on implementing the requirements of the EU's Electricity Target Model.