Financial Transmission Rights Obligation
European Union Electricity Market Glossary

 


 

 

According to the Commission Regulation (EU) 2016/1719 of 26 September 2016 establishing a guideline on forward capacity allocation - FCA Regulation, 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 allocation results between two bidding zones during a specified period of time in a specific direction.

 

The analogous definition of the Financial Transmission Right Obligation is used by Harmonised allocation rules for long‐term transmission rights as stipulated in the Annex to Decision of the Agency for the Cooperation of Energy Operators (ACER) No 03/2017 of 2 October 2017.

 

Financial Transmission Rights Obligations are regulated in Articles 34 and 35 of the FCA Regulation - see box.

 

 

 

FCA Regulation

  

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. 

 

 

 

 

 

 

IMG 0744

    Documentation    

 

 

 

 

Network Code on Forward Capacity Allocation (Commission Regulation (EU) 2016/1719 of 26 September 2016 establishing a guideline on forward capacity allocation - FCA Regulation)

 

 

 

 

 

 

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    Links    

 

 

 

 

 

Single day-ahead coupling (SDAC)

 

Forward Capacity Harmonised Allocation Rules

 

Physical Transmission Rights

  

Forward Capacity Harmonised Allocation Rules

 

Capacity allocation

 

 

 

 

 

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Last Updated on Thursday, 30 November 2017 08:36
 

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