|Forward Capacity Allocation Platform|
Forward Capacity Single Allocation Platform (SAP) belongs to the biggest projects arising from the Network Code on Forward Capacity Allocation (FCA).
The purpose of the SAP is to allocate Long Term Transmission Rights (LTTRs) on the bidding-zone borders where these products are to be offered based on the EU Member States’ National Regulatory Authorities' (NRA's) decisions.
The Single Allocation Platform allocates Long Term Transmission Rights to its participants by way of explicit allocation (Article 27(1) of the Forward Capacity Harmonised Allocation Rules (HAR)).
The tasks of the SAP include the simultaneous determinaction for each forward capacity allocation, at least, the following results for each bidding zone border, direction of utilization and market time period:
a) the volume of allocated Long Term Transmission Rights expressed in MW;
b) the price of Long Term Transmission Rights; and
c) the execution status of bids.
The principal responsibility of the Single Allocation Platform is to perform the forward capacity allocation, and in particular:
a) the registration of market participants;
b) providing a single point of contact to market participants;
c) the operation of auction procedures;
d) the financial settlement of allocated Long Term Transmission Rights with market participants, including management of collaterals;
e) cooperation with a potential clearing house function;
f) enabling the return of Long Term Transmission Rights;
g) the publication of market information, pursuant to Article 52;
h) providing and operating interfaces for data exchange with market participants;
i) the organization of a fallback procedure;
j) providing a communication platform, on which market participants can indicate to other market participants their interest to transfer or purchase Long Term Transmission Rights which have been initially allocated by allocation platforms and on which market participants can contact each other 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.
SAP is required to publish a list of registered participants eligible to transfer Long‐Term Transmission Rights.
Registered participants must notify the SAP in case of any change to the information submitted, at least seven working days before the change comes into effect and, where that is not possible, without delay after the registered participant becomes aware of the change (Article 9(3) of the HAR).
For standard forward capacity allocation timeframes (i.e. yearly and monthly) a provisional auction calendar for each calendar year is to be published no later than 1 December of the preceding year.
It must include at least provisional information on the form of the product, product period and bidding period (Article 27(4) of the HAR).
The default auction calendar encompass at least one auction per year for the yearly timeframe and one auction per month for the monthly timeframe.
The standard form of the auction product is base product by which a fixed amount of MW throughout the product period is allocated subject to announced reduction periods.
Also additional timeframes and/or an additional form of products may be offered.
The content of auction specification is stipulated in Article 29 of the HAR.
According to this provision the allocation platform is required to publish auctions specifications in a provisional one and final version:
- for yearly auctions - no later than 1 week before the end of the bidding period of an auction,
- for any other shorter capacity allocation timeframe - no later than two 2 working days before the end of the bidding period of an auction.
The provisional auction specification states, in particular:
(a) the code identifying the auction in the auction tool;
(b) type of Long Term Transmission Rights;
(c) capacity allocation timeframe (e.g. yearly, monthly or other);
(d) form of product (e.g. base, peak, off‐peak;
(e) identification of the bidding zone border(s) or a subset of the interconnectors on the bidding zone border and direction covered;
(f) deadline for return of the Long Term Transmission Rights allocated in previous auctions for the respective bidding zone border(s);
(g) the product period;
(h) reduction period(s) associated with the product period when applicable;
(i) the bidding period;
(j) the deadline for the publication of the provisional auction results;
(k) the contestation period;
(l) the provisional offered capacity which shall not include cross zonal capacity released via return of Long Term Transmission Rights and cross zonal capacity;
(m) any other relevant information or terms applicable to the product or the auction.
Not earlier than four (4) hours after publication of the provisional auction specification, the allocation platform publishes the final auction specification for that auction stating the final offered capacity and any other update of relevant information or terms applicable to the product or the auction.
The final offered capacity consists of:
(a) the provisional offered capacity;
(b) the available cross zonal capacity already allocated to registered participants for which a valid request for return of Long Term Transmission Rights has been submitted for this auction; and
(c) the available cross zonal capacity already allocated to registered participants which will be reallocated as a result of suspension or termination.
Reduction periods of offered capacity
The allocation platform may announce in the auction specification one or more reduction periods.
In such a case the duration of the reduction period and the amount of offered capacities are specified.
Reduction periods do not apply to already allocated Long Term Transmission Rights and are not be considered for any purpose including compensation as a curtailment.
Bids are submitted to the allocation platform electronically during the bidding period.
Bids are submitted with the use of the Auction Tool.
Registered participant are identified by the allocation platform through the EIC code.
Bids submitted to the allocation platform:
1. identify the bidding zones border and the direction for which the bid is submitted;
2. must state:
- the bid price, exclusive of taxes and levies, in Euros per MW for one hour of the product period, i.e. Euro/MW and hour, expressed to a maximum of two (2) decimal places, and equal to or greater than zero,
- the bid quantity in full MW which must be expressed without decimals, minimum amount of a single bid is one (1) MW.
Auction results determination
The allocation platform determines the marginal price at each bidding zone border and direction based on the following criteria:
(a) if the total quantity of cross zonal capacity for which valid bids have been submitted is lower than or equal to the relevant offered capacity for the relevant auction, then the marginal price will be zero;
(b) if the total quantity of cross zonal capacity for which valid bids have been submitted exceeds the relevant offered capacity for the relevant auction, the marginal price will be set at the lowest bid(s) price(s) allocated in full or in part using the respective offered capacities.
The Long Term Transmission Rights are deemed to have been allocated to the auction registered participant from the moment the said participant has been informed of the auction results and the contestation period is closed (Article 35(8) of the HAR).
Notification of auction results
The allocation platform is required to publish on its website the provisional auction results as soon as possible but not later than specified in the final auction specification.
The said publication is required to comprise for each bidding zone border included in the auction at least the following data:
(a) total requested Long Term Transmission Rights in MW;
(b) total allocated Long Term Transmission Rights in MW;
No later than 30 minutes after the publication of the provisional auction results the allocation platform makes available via the Auction Tool to each registered participant who submitted a bid to a specific auction for each bidding zone border included in the auction at least the following data:
(a) allocated Long Term Transmission Rights for each hour of the product period in MW;
(b) marginal price in Euros/MW per hour;
(c) and due amount for allocated Long Term Transmission Rights in Euro, rounded to two decimal places; and
(d) due amount for one monthly instalment for allocated Long Term Transmission Rights in Euro, rounded to two decimal places, in the event that the product period is longer than one month.
Harmonised allocation rules for long‐term transmission rights in accordance with Article 51 of Commission Regulation (EU) 2016/1719 of 26 September 2016 establishing a Guideline on Forward Capacity Allocation (Annex I to the ACER Decision 03/2017)
|Last Updated on Tuesday, 27 February 2018 22:17|