PC_2022_E_10 - Public Consultation on the revision of the rules on the cross-zonal capacity allocation in the long term electricity markets

Europe’s long-term electricity market relies on so-called long-term transmission rights (LTTRs), which allow market participants to hedge their exposure across bidding zones. The allocation of the LTTRs is currently not coordinated across different borders, which leads to inefficiencies in some capacity calculation regions (CCRs).

The EU Agency for the Cooperation of Energy Regulators (ACER) requested all Transmission System Operators (TSOs) to amend the forward capacity allocation methodologies regarding the allocation of the LTTRs. The all TSOs’ proposals were submitted on 28 September 2022.

With the expected implementation of the long-term flow-based calculation and allocation in the Core and Nordic CCRs, ACER is now conducting its review of the long-term flow-based allocation methodologies related to:

• Single allocation platform, including the methodology for sharing costs for its establishment, development and operation;
• Congestion income distribution; and
• Sharing costs incurred to ensure firmness and remuneration of LTTRs.

In order to make an informed and inclusive decision, ACER held a public consultation. 

Enter the Public Consultation.

ACER approved on 22 March 2023 three proposals from Transmission System Operators (TSOs) for amendments to the forward capacity allocation methodologies related to:

• Single allocation platform, including the methodology for sharing costs for its establishment, development and operation (SAP);
• Congestion income distribution (CID); and
• Sharing costs incurred to ensure firmness and remuneration of LTTRs (FRC).

Access the ACER Decision 05/2023 on SAP and its Annex I, Annex Ia, Annex II.
Access the ACER Decision 06/2023 on CID and its Annex I, Annex Ia, Annex II.
Acces the Access the ACER Decision 07/2023 on FRC and its Annex I, Annex Ia, Annex II.

Access the Evaluation of Responses. 

Annex 1: SAP final proposal.

Annex 2: SAP explanatory note.

Annex 3: FCA-CIDM final proposal.

Annex 4: FCA-CIDM explanatory note.

Annex 5: FCA-FRC final proposal.

Annex 6: FCA-FRC explanatory note.

Annex 7: SAP final proposal (compare).

Annex 8: FCA-CIDM final proposal (compare).

Annex 9: FCA-FRC final proposal (compare).

Privacy Statement.

Public Notice.

ACER had 6 months (until 28 March 2023) to decide on the TSOs’ proposals.

As part of its review, ACER also sought stakeholder input via a Public Workshop on 17 November 2022.