|Long Term Transmission Rights Secondary Trading|
Long Term Transmission Rights Secondary Trading in the European Union Internal Electricity Market means the trading of Long Term Transmission Rights through which a market participant is able to buy or sell Long Term Transmission Rights which were initially allocated by the Allocation Platform(s).
Hence, Long Term Transmission Rights holders will be entitled to transfer all or part of their Long Term Transmission Rights through Secondary Trading to other market participants according to the corresponding Allocation Rules.
According to the procedure envisioned, Long Term Transmission Rights holders transferring their Long Term Transmission Rights through Secondary Trading must notify the Allocation Platforms while the acquirer of the Long Term Transmission Rights must confirm to the Allocation Platforms the notification sent by the previous holder.
The key role in forming the shape of Secondary Trading in Long Term Transmission Rights is assigned to Harmonised Allocation Rules, which establish, among others, firmness provisions as well as the compensation rules (i.e. the rules according to which each Transmission System Operator responsible for the Bidding Zone Border where Long Term Transmission Rights have been allocated, compensates market participants for curtailing the Long Term Transmission Rights).
Harmonised Allocation Rules will be developed by means of all Transmission System Operators' proposal (applying the breakdown into Physical Transmission Rights and Financial Transmission Rights), for which the deadline has been set twelve months from the entry into force of the Forward Capacity Allocation Network Code.
Single Allocation Platform created according to the Forward Capacity Allocation Network Code will provide a communication platform, on which market participants will be able to indicate to other market participants their interest to transfer or purchase Long Term Transmission Rights which have been initially allocated by allocation platforms.
Single Allocation Platform will serve, moreover, as a contact center for market participants in order to perform the transfer of Long Term Transmission Rights.
The formal requirement for market participants before being entitled to participate in the auction(s) or perform secondary trading is to register with the Single Allocation Platform and to meet all eligibility requirements under the corresponding allocation rules.
Article 14(6) of the Proposal for a Regulation of the European Parliament and of the Council on the internal market for electricity (recast), 30.11.2016, COM(2016) 861 final 2016/0379 (COD) stipulates that capacity "shall be freely tradable on a secondary basis, provided that the transmission system operator is informed sufficiently in advance. Where a transmission system operator refuses any secondary trade (transaction), this shall be clearly and transparently communicated and explained to all the market participants by that transmission system operator and notified to the regulatory authority".
|Last Updated on Monday, 13 March 2017 22:07|