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Network Code on Forward Capacity Allocation (FCA)




Commission Regulation (EU) 2016/1719 of 26 September 2016 establishing a guideline on forward capacity allocation (FCA Regulation) establishes common rules for forward capacity allocation including the establishment of common methodology for determining the volumes of capacity simultaneously available between bidding zones.


The FCA Regulation was published in the EU Official Journal on 27 September 2016 and entered into force on 17 October 2016.


FCA Regulation lays down detailed rules on:


1. cross-zonal capacity allocation in the forward markets ((i.e. timeframes longer than day-ahead),


2. the establishment of a common methodology to determine long-term cross-zonal capacity, in the forms of:


- a  cordinated net transmission capacity approach (CNTC) or


- a flow-based approach),


3. the establishment of a single forward capacity allocation platform at European level offering long term transmission rights, and


4. the possibility to return long-term transmission rights for subsequent forward capacity allocation or transfer long-term transmission rights between market participants.


FCA Regulation applies to all transmission systems and interconnections in the European Union, except the transmission systems on islands which are not connected with other transmission systems via interconnectors.


The entities affected by the requirements set forth by the FCA Regulation will be Transmission System Operators (TSOs), NRAs, the Agency for the Cooperation of Energy Regulators (ACER), Allocation Platforms, platforms for secondary trading and, last but not least, market participants.


The purposes of the FCA Regulation are:


(a) promoting effective long-term cross-zonal trade with long-term cross-zonal hedging opportunities for market participants;


(b) optimising the calculation and allocation of long-term cross-zonal capacity;


(c) providing non-discriminatory access to long-term cross-zonal capacity;


(d) ensuring fair and non-discriminatory treatment of TSOs, the Agency, regulatory authorities and market participants;


(e) respecting the need for a fair and orderly forward capacity allocation and orderly price formation;


(f) ensuring and enhancing the transparency and reliability of information on forward capacity allocation;


(g) contributing to the efficient long-term operation and development of the electricity transmission system and electricity sector in the European Union.


The rules incorporated in the FCA Regulation are particularly important in the context of a limited number of liquid forward markets in Europe, where the cross-zonal access to these markets needs to be facilitated.


The FCA Regulation play a crucial role in this regard, as the respective provisions establish a framework for calculating and allocating interconnection capacity, and for cross-zonal trading in forward markets.






IMG 0744






Commission Regulation (EU) 2016/1719 of 26 September 2016 establishing a guideline on forward capacity allocation (FCA)


Draft Commission Regulation establishing a guideline on forward capacity allocation, Version 30.10.2015


ACER Recommendation No 02/2014 of 22 May 2014 on the Network Code on Forward Capacity Allocation













ENTSO-E website for forward capacity allocation


Long Term Transmission Rights (LTTRs) 










Last Updated on Tuesday, 28 November 2017 00:27


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