Financial Transmission Rights Obligation
European Union Electricity Market Glossary

 


 

 

According to the Network Code on Forward Capacity Allocation (FCA), Financial Transmission Rights Obligations are (along with Financial Transmission Rights Optionsa sub-type of the broader category of Financial Transmission Right (FTR) and denote rights entitling the holder to receive or obliging the holder to pay a financial remuneration based on the day ahead market results between two bidding zones during a specified period of time in a specific direction.

 

 

 

Network Code on Forward Capacity Allocation

  

Article 34

Financial transmission rights — obligations

 

1. Holders of FTRs - obligations shall be entitled to receive or obliged to pay the financial remuneration pursuant to Article 35.

 

2.The implementation of FTRs - obligations shall be subject to the application of day-ahead price coupling according to Articles 38 to 50 of Regulation (EU) 2015/1222.

 

Article 35

Principles for long-term transmission rights remuneration

 

1. The relevant TSOs performing the allocation of transmission rights on a bidding zone border through the single allocation platform shall remunerate the long-term transmission rights holders in case the price difference is positive in the direction of the long-term transmission rights.

 

2. The holders of FTRs - obligations shall remunerate the relevant TSOs through the single allocation platform allocating transmission rights on a bidding zone border in case the price difference is negative in the direction of the FTRs - obligations.

 

3. The remuneration of long-term transmission rights in paragraphs 1 and 2 shall comply with the following principles:

 

(a) where the cross-zonal capacity is allocated through implicit allocation or another method resulting from a fallback situation in the day-ahead time frame, the remuneration of long-term transmission rights shall be equal to the market spread;

 

(b) where the cross-zonal capacity is allocated through explicit auction in the day-ahead time frame, the remuneration of long-term transmission rights shall be equal to the clearing price of the daily auction.

 

4. In case allocation constraints on interconnections between bidding zones have been included in the day-ahead capacity allocation process in accordance with Article 23(3) of Regulation (EU) 2015/1222, they may be taken into account for the calculation of the remuneration of long-term transmission rights pursuant to paragraph 3. 

 

 

 

 

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Physical Transmission Rights

 

Capacity allocation

 

 

 

Last Updated on Sunday, 12 March 2017 12:08
 

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