|European Union Electricity Market Glossary|
'UIOSI' (use-it-or-sell-it) principle means the rule according to which the underlying cross zonal capacity of physical transmission rights (PTRs) purchased and non-nominated is automatically made available for day-ahead capacity allocation and according to which the holder of these physical transmission rights receives remuneration from the Transmission System Operators (TSOs) (Article 2(6) of the Network Code on Forward Capacity Allocation).
Also Article 45 of the Harmonised allocation rules for long‐term transmission rights (Annex I to the ACER Decision 03/2017 - HAR) stipulates that the PTRs:
- may be nominated for physical use and
In case the holder does not nominate its PTRs, the allocation platform makes the underlying cross zonal capacity of the non‐nominated PTR available for the relevant daily allocation.
The holder may also reserve its PTRs for the balancing services, the effect of this reservation is that such cross zonal capacity is excluded from the application of the remuneration processes.
The PTRs holders who:
- do not nominate their PTRs for physical use or
- do not reserve its PTRs for the balancing services;
is entitled to remuneration, which is paid by the allocation platform.
Rules for the remuneration for non‐nominated and reallocated PTRs are stipulated in Article 48 of the HAR and are as follows:
1. the remuneration is for each MW which was non‐nominated for the relevant hourly period,
(a) in case of day‐ahead implicit allocation, including in case of fallback allocation for implicit allocation, the price is equal to the market spread at the concerned bidding zone border for the concerned hourly period only in case the price difference is positive in the direction of the PTRs of the day‐ahead implicit allocation in which that cross zonal zapacity was reallocated, and 0€/MWh, otherwise (if specified in the respective regional or border specific annexes, this price may be adjusted to reflect allocation constraints on interconnections between bidding zones, where these allocation constraints are included in the day‐ahead cross zonal capacity allocation process);
(b) in case of day‐ahead explicit allocation different from fallback allocation for implicit allocation for PTR, the price is equal to the marginal price of the daily auction at which that PTR was reallocated, for the concerned hourly period; and
(c) in case of fallback allocation of implicit allocation or explicit allocation where no reference price is calculated for the daily allocation timeframe the price for the PTRs remuneration shall be the marginal price of initial auction.
According to Article 38(7) of the Commission Regulation (EU) 2017/2195 of 23 November 2017 establishing a guideline on electricity balancing if physical transmission right holders use cross zonal capacity for the exchange of balancing capacity, the capacity shall be considered as nominated solely for the purpose of excluding it from the application of the use-it-or-sell-it (‘UIOSI’) principle.
Network Code on Forward Capacity Allocation, Article 2(6)
Network Code on Electricity Balancing (Commission Regulation (EU) 2017/2195 of 23 November 2017 establishing a guideline on electricity balancing - NC EB), Article 38(7)
Decision of the Agency for the Cooperation of Energy Operators (ACER) No 03/2017 of 2 October 2017 on the electricity transmission system operators’ proposal for harmonised allocation rules for long-term transmission rights
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 Saturday, 09 June 2018 20:20|