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Financial Transmission Rights (FTRs)
European Union Electricity Market Glossary

 

 

 

Financial Transmission Right (FTR) is a category of Long Term Transmission Rights and is either a Financial Transmission Right Obligation or a Financial Transmission Right Option.

 

According to Article 31(6) of the FCA Regulation:

 

- the allocation of Physical Transmission Rights (PTRs) and FTRs options in parallel at the same bidding zone border is not allowed,

 

- the allocation of PTRs and FTRs - obligations in parallel at the same bidding zone border is also not allowed.

 

Article 45(2) of the Harmonised allocation rules for long‐term transmission rights (HAR), as established in the Annex to the Decision of the Agency for the Cooperation of Energy Operators (ACER) No 03/2017 of 2 October 2017, stipulates that the holder of allocated FTRs is not entitled to nominate them for physical delivery.

 

Participants in coupled markets continue to be able to buy FTRs.

 

Financial Transmission Rights allow the holder to be paid the difference in price between two coupled markets, but do not give any nomination right or allow the holder to influence the flow of energy between coupled markets (Commission Staff Working Document, Accompanying the document Report from the Commission, Interim Report of the Sector Inquiry on Capacity Mechanisms {C(2016) 2107 final}, 13.4.2016 SWD(2016) 119 final, p. 134, Commission Staff Working Document of 30.11.2016 Accompanying the document Report from the Commission Final Report of the Sector Inquiry on Capacity Mechanisms {COM(2016) 752 final} SWD(2016) 385 final, p. 181).

 

Eurelectric underlined the following features of FTRs (Eurelectric letter to the DG FISMA of 19 November 2015, Eurelectric concerns on the negative impact of Financial Transmission Rights being classified as financial instruments under MiFID II on the completion of the internal energy market):

 

- FTRs are only being offered in volumes corresponding to the actual physical transmission capacity,

 

- FTRs are the only way the physically available transmission capacity will be sold long term (as the physical transmission capacity will not be sold via an additional, different long term product),


- FTRs will always be given to the day-ahead market for use in the market coupling of the physical transmission capacity,


- the use of the FTR can be affected by constraints in the underlying available physical transmission capacity.

 

Accordingly, they will always be linked to the underlying physical transmission capacities and will not be a product that can be offered by the Transmission System Operators (TSOs) for speculative purposes.

 

 

 

 

 

 

IMG 0744

    Documentation    

 

 

 

 

 

Network Code on Forward Capacity Allocation (FCA Regulation)

 

Commission Staff Working Document of 30.11.2016 Accompanying the document Report from the Commission Final Report of the Sector Inquiry on Capacity Mechanisms {COM(2016) 752 final} SWD(2016) 385 final, p. 181

 

Commission Staff Working Document, Accompanying the document Report from the Commission, Interim Report of the Sector Inquiry on Capacity Mechanisms {C(2016) 2107 final}, 13.4.2016 SWD(2016) 119 final, p. 134

 

Eurelectric letter to the DG FISMA of 19 November 2015, Eurelectric concerns on the negative impact of Financial Transmission Rights being classified as financial instruments under MiFID II on the completion of the internal energy market

 

 

 

 

 

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    Links    

 

 

 

 

 

Forward Capacity Allocation Platform

 

Energy transmission rights as financial instruments

 

Capacity allocation

 

 

 

 

 

 

 

 

 

 

Last Updated on Tuesday, 12 June 2018 21:26
 

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