European Union Electricity Market Glossary




Nomination means the notification of the use of long-term cross-zonal capacity by a Physical Transmission Rights holder and its counterparty to the respective Transmission System Operators (Article 2(7) of the Network Code on Forward Capacity Allocation).




Network Code on Forward Capacity Allocation


Article 32
Physical transmission rights

1. Each physical transmission right holder shall be entitled to nominate all or part of its physical transmission rights pursuant to Article 36.
2. Where the physical transmission rights holders do not make a nomination by the deadline specified in the nomination rules, they shall be entitled to obtain remuneration in accordance with Article 35.


Article 36
General provisions for physical transmission rights nomination


1. Where TSOs issue and apply physical transmission rights on bidding zone borders, they shall enable physical transmission rights holders and/or their counterparties to nominate their electricity exchange schedules. Physical transmission rights holders may authorise eligible third parties to nominate their electricity exchange schedules on their behalf in line with the nomination rules in accordance with paragraph 3.


2. No later than 12 months after the entry into force of this Regulation, all TSOs issuing physical transmission rights on a bidding zone border shall submit to the relevant regulatory authorities' approval a proposal for nomination rules for electricity exchange schedules between bidding zones. The proposal shall be subject to consultation in accordance with Article 6. Nomination rules shall contain at least the following information:
(a) the entitlement of a physical transmission rights holder to nominate electricity exchange schedules;
(b) minimum technical requirements to nominate;
(c) description of the nomination process;
(d) nomination timings;
(e) format of nomination and communication.


3. All TSOs shall progressively harmonise the nomination rules on all bidding zone borders on which physical transmission rights are applied.


4. Physical transmission rights holders, their counterparties where applicable or an authorised third party acting on their behalf shall nominate all or part of their physical transmission rights between bidding zones in compliance with the nomination rules.


5. 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 shall be taken into account in the proposal for nomination rules referred to in paragraph 2.




Nomination Rules are the rules with regard to the notification of use of long-term cross-zonal capacity by a physical transmission rights holder and their counterparty, or an authorised third party, to the respective TSOs (Article 2(8) of the Network Code on Forward Capacity Allocation).


Principle description of the applicable Nomination Rules will be contained in the Harmonised Allocation Rules for Physical and Financial Transmission Rights developed by all Transmission System Operators.



Last Updated on Saturday, 18 March 2017 12:24


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