|Forward Capacity Allocation Platform|
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One of the biggest projects arising from the Network Code on Forward Capacity Allocation (FCA) will be the establishment of the Single Allocation Platform (SAP), which will allocate Long Term Transmission Rights (LTR) on the Bidding-Zone borders where these products are to be offered based on National Regulatory Authorities' (NRA's) decisions.
The SAP will simultaneously determine 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 Forward Capacity Allocation will enable long term cross zonal trade and provide market participants with long term cross zonal hedging opportunities against congestion costs and day ahead congestion pricing, compatible with bidding zone delimitation.
The Single Allocation Platform will be responsible for performing the Forward Capacity Allocation, in particular, for:
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.
|Last Updated on Sunday, 12 March 2017 17:52|