Financial Transmission Rights Obligation

 


 

 

According to the Network Code on Forward Capacity Allocation (FCA), Financial Transmission Rights Obligations are (along with Financial Transmission Rights Optionsa sub-type of the broader category of Financial Transmission Right (FTR) and denote rights entitling the holder to receive or obliging the holder to pay a financial remuneration based on the day ahead market results between two bidding zones during a specified period of time in a specific direction.

 

 

 

Network Code on Forward Capacity Allocation

  

Article 34

Financial transmission rights — obligations

 

1. Holders of FTRs - obligations shall be entitled to receive or obliged to pay the financial remuneration pursuant to Article 35.

 

2.The implementation of FTRs - obligations shall be subject to the application of day-ahead price coupling according to Articles 38 to 50 of Regulation (EU) 2015/1222.

 

Article 35

Principles for long-term transmission rights remuneration

 

1. The relevant TSOs performing the allocation of transmission rights on a bidding zone border through the single allocation platform shall remunerate the long-term transmission rights holders in case the price difference is positive in the direction of the long-term transmission rights.

 

2. The holders of FTRs - obligations shall remunerate the relevant TSOs through the single allocation platform allocating transmission rights on a bidding zone border in case the price difference is negative in the direction of the FTRs - obligations.

 

3. The remuneration of long-term transmission rights in paragraphs 1 and 2 shall comply with the following principles:

 

(a) where the cross-zonal capacity is allocated through implicit allocation or another method resulting from a fallback situation in the day-ahead time frame, the remuneration of long-term transmission rights shall be equal to the market spread;

 

(b) where the cross-zonal capacity is allocated through explicit auction in the day-ahead time frame, the remuneration of long-term transmission rights shall be equal to the clearing price of the daily auction.

 

4. In case allocation constraints on interconnections between bidding zones have been included in the day-ahead capacity allocation process in accordance with Article 23(3) of Regulation (EU) 2015/1222, they may be taken into account for the calculation of the remuneration of long-term transmission rights pursuant to paragraph 3. 

 

 

 

 

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Physical Transmission Rights

 

Capacity allocation

 

 

 

Last Updated on Sunday, 12 March 2017 11:08
 

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