|Nomination of Physical Transmission Rights|
|European Union Electricity Market Glossary|
Nomination of physical transmission rights means the notification of the use of long-term cross-zonal capacity by a physical transmission rights (PTRs) holder and its counterparty to the respective Transmission System Operators (TSOs) (Article 2(7) of the Commission Regulation (EU) 2016/1719 of 26 September 2016 establishing a guideline on forward capacity allocation (Network Code on Forward Capacity Allocation, known as FCA Regulation)).
According to Article 36(1) of the FCA Regulation:
“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”
PTRs are subject to the “use it or sell it principle”.
Pursuant to Article 32 of the FCA Regulation each PTRs holder is entitled to nominate all or part of its PTRs, in case where a nomination is not made by the deadline specified in the nomination rules, such holder is entitled to the remuneration (set according to the principles stipulated is Article 35 of the FCA Regulation - see box).
Harmonised Allocation Rules (HAR) refer to the above rules in Article 45(3), stipulating that in case the registered participant does not nominate its PTRs, the allocation platform makes the underlying cross zonal capacity of the non‐nominated PTRs available for the relevant daily allocation.
In the HAR the remuneration is envisioned not only for the PTRs holders who do not nominate their PTRs for physical use but also to those who have not reserved their PTRs for the balancing services.
HAR stipulate that in case the long term transmission rights holder reserves its PTRs for the balancing services, such cross zonal capacity is excluded from the application of the remuneration processes.
HAR expressly underline (Article 45(1) and (2)) that the right to nominate relates to PTRs only and the the holder of allocated financial transmission rights is not entitled to nominate them for physical delivery.
Nomination rules are the rules with regard to the notification of use of long-term cross-zonal capacity by a PTRs holder and their counterparty, or an authorised third party, to the respective TSOs (Article 2(8) of the FCA Regulation).
Physical transmission rights holders, their counterparties where applicable or an authorised third party acting on their behalf nominate all or part of their physical transmission rights between bidding zone in compliance with the nomination rules (Article 36(4) of the FCA Regulation).
TSOs’ proposal for nomination rules is subject to approval of the relevant regulatory authorities.
The nomination rules must contain at least the following information:
(a) the entitlement of a physical transmission rights holder to nominate electricity exchange schedules;
The deadline for the above submission is set at 12 months after the entry into force of the FCA Regulation.
FCA Regulation envisions that the nomination rules should be progressively harmonised on all bidding zone borders on which physical transmission rights are applied.
Principle description of the applicable nomination rules is contained in the HAR.
According to the HAR (Article 46) nomination of PTRs is subject to the following general rules:
1. persons eligible to nominate are the following:
(a) the PTRs’ holder; or
(b) the person notified by the PTRs’ holder during the nomination process to the respective TSOs in line with the relevant nomination rules; or
(c) the person authorised by the PTRs’ holder to nominate in line with the relevant nomination rules and notified to the allocation platform;
2. the allocation platform is required to provide on its website an overview of the above options which are applicable on each bidding zone border;
3. for the process of the notification of the eligible persons to the allocation platform the following criteria should be met:
(a) the eligible person must have an EIC Code in order to allow its identification in the rights document; and
(b) the PTRs’ holder is required to notify the eligible person to the allocation platform via the auction tool and at the latest one (1) hour before the sending of the fights document for a specific day;
4. the nomination must be done in compliance with the rights document.
The allocation platform is required to publish a list with the relevant nomination rules for the bidding zone borders on its website.
The relevant nomination rules set forth the long term nomination deadlines for respective bidding zone borders.
The allocation platform publishes on its website information on the long term nomination deadlines per bidding zone border.
Network Code on Forward Capacity Allocation (Commission Regulation (EU) 2016/1719 of 26 September 2016 establishing a guideline on forward capacity allocation - FCA Regulation), Article 2(7), Article 32, 35, 36
Decision of the Agency for the Cooperation of Energy Operators (ACER) No 03/2017 of 2 October 2017 on the electricity transmission system operators’ proposal for harmonised allocation rules for long-term transmission rights
Harmonised allocation rules for long‐term transmission rights in accordance with Article 51 of Commission Regulation (EU) 2016/1719 of 26 September 2016 establishing a Guideline on Forward Capacity Allocation (Annex I to the ACER Decision 03/2017), Article 45 - 48
|Last Updated on Thursday, 22 March 2018 13:16|