Financial Transmission Rights Option
European Union Electricity Market Glossary

 


 

 

According to the Network Code on Forward Capacity Allocation (FCA) Financial Transmission Rights Option is a sub-type of the broader category of Long Term Transmission Rights and means a right entitling its holder to receive 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 33

Financial transmission rights — options

 

1. Holders of FTRs — options shall be entitled to obtain remuneration in accordance with Article 35.

 

2. The implementation of FTRs — options shall be subject to the application of day-ahead price coupling in accordance with 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.

 

 

 

 

Links

 

 

Physical Transmission Rights

 

Financial Transmission Rights Obligation

 

Financial Transmission Right (FTR)

 

Capacity allocation

 

 

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Last Updated on Sunday, 12 March 2017 12:09
 

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