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FORWARD CAPACITY ALLOCATION

DEVELOPMENT OF METHODOLOGIES RELATED TO FORWARD CAPACITY ALLOCATION

 

See disclaimer at the end of the page.

 

Decision on cross-zonal risk hedging opportunities

Pursuant to Article 30(2) of the FCA Regulation, where long-term transmission rights (LTTRs) do not exist on a bidding zone border at the entry into force of the FCA Regulation, the competent regulatory authorities of the bidding zone border need to adopt coordinated decisions on the introduction of LTTRs. In case the regulatory authorities request from the TSOs to develop hedging instruments other than LTTRs (i.e. alternative hedging instruments), the TSOs need to develop a proposal for alternative hedging instruments and submit it to the concerned regulatory authorities for approval and to the Agency for information.

Action 1: In May 2017, the regulatory authorities of the bidding zone border CZ-SK adopted a decision that the TSOs shall issue LTTRs on this border.

Action 2: In May 2017, the regulatory authorities of the bidding zone borders DK1-SE3, DK2-SE4, LV-LT and SE4-LT adopted a decision to request the concerned TSOs to develop alternative hedging instruments for these bidding zone borders.

Action 3: In May 2017, the concerned regulatory authorities decided that TSOs shall not issue LTTRs or alternative hedging instruments on the following bidding zone borders:

  1. CCRs NORDIC: FI-EE, FI-SE1, FI-SE3, SE1-SE2, SE2-SE3, SE3-SE4,
  2. CCR BALTIC: LV-EE, PL-LT
  3. CCR HANSA: PL-SE4
  4. CCR GRIT: NORD-CNOR, CNOR-CSUD, CNOR-SARD, SARD-CSUD, CSUD-SUD, SUD-BRNN, SUD-FOGN, SUD-ROSN, ROSN-SICI, SICI-PRGP

Action 4: In November 2017, the TSOs of Denmark, Sweden, Latvia and Lithuania submitted to the concerned regulatory authorities the proposals for alternative hedging instruments on the bidding zone borders: DK1-SE3, DK2-SE4, LV-LT and SE4-LT.

You can find documents related to the above actions here. Please note that only common agreements are published here (where they exist), whereas individual national decisions are not.

You can find the overview of the existing cross-zonal hedging instruments for all bidding zone borders here.

 

Regional design of long-term transmission rights

Pursuant to Article 31(3) of the FCA Regulation, TSOs of each CCR where LTTRs exist need to develop a proposal for a regional design of LTTRs and submit it to the concerned regulatory authorities for approval and to the Agency for information.

Action 1: By June 2017, TSOs in CCRs CORE, CHANNEL, IU, SWE, SEE, ITALY NORTH and GRIT submitted to the concerned regulatory authorities and the Agency the proposals for the regional design of LTTRs.

Action 2: In October 2017, the regulatory authorities in CCRs CORE, IU, SWE, ITALY NORTH and GRIT approved the proposals for the regional design of LTTRs.

Action 3: In October 2017, the regulatory authorities in CCR CHANNEL requested from the concerned TSOs to amend the proposal for the regional design of LTTRs.

Action 4: In October 2017, TSOs from the CCRs HANSA and NORDIC informed the Agency that they were not able to submit a proposal for the regional design within the defined deadline. Pursuant to Article 4(4) of the FCA Regulation, the Agency informed the Commission about this issue.

Action 5: In November 2017, all TSOs from the CCR HANSA, NORDIC and BALTIC submitted to the concerned regulatory authorities and the Agency the proposals for the regional design of LTTRs.

Action 6: In December 2017, the regulatory authorities in CCR SEE requested from the concerned TSOs to amend the proposal for the regional design of LTTRs.

Action 7: In December 2017, all TSOs from the CCR CHANNEL submitted to the concerned regulatory authorities and the Agency the amended proposal for the regional design of LTTRs.

Moreover, pursuant to Article 31(3) of the FCA Regulation, all TSOs of each CCR, with recently introduced LTTRs, need to develop a proposal for the regional design of LTTRs to be issued on each bidding zone border within the concerned CCR, and submit it to the concerned regulatory authorities for approval and to the Agency for information.

Action 8: In December 2017, all TSOs of CCR CORE submitted to the concerned regulatory authorities and the Agency the amended proposal for the regional design of LTTRs.

Action 9: In February 2018, the regulatory authorities in CCR CHANNEL approved the amended proposal for the regional design of LTTRs.

Action 10: In February 2018, all TSOs from the CCR SEE submitted to the concerned regulatory authorities and the Agency the amended proposal for the regional design of LTTRs.
 
Action 11: In March 2018, the regulatory authorities in CCRs HANSA and BALTIC approved the proposals for the regional design of LTTRs.
 
Action 12: In April 2018, the regulatory authorities in CCR NORDIC approved the proposal for the regional design of LTTRs and the regulatory authorities in CCR SEE approved the amended proposal for the regional design of LTTRs.
 

Action 13: By July 2018, the regulatory authorities in CCR CORE approved the amended proposal for the regional design of LTTRs.


You can find documents related to the above actions here.

You can find the exact dates of the above actions in the implementation table here.

You can find the approved regional designs of long term transmission rights here.

 

Harmonised allocation rules

Pursuant to Article 51(1) of the FCA Regulation, all TSOs need to develop a proposal for harmonised allocation rules and submit it to the concerned regulatory authorities for approval and to the Agency for information.

Action 1: In April 2017, all TSOs submitted to all regulatory authorities and the Agency the proposal for the harmonised allocation rules.

Action 2: In August 2017, the concerned regulatory authorities referred the proposal for the harmonised allocation rules to the Agency for a decision in accordance with the procedure set out in Article 4(11) of the FCA Regulation. The reason for the referral was that they were not able to reach an agreement on the proposal.

Action 3: In October 2017, the Agency adopted a decision on the proposal for the harmonised allocation rules.

The harmonised allocation rules should be implemented for the forward capacity allocation of 2018 onwards.

You can find documents related to the above actions here.

You can find the exact dates of the above actions in the implementation table here.

You can find the approved harmonised allocation rules here.

 

Regional or border specific requirements of harmonised allocation rules

Pursuant to Article 52(3) of the FCA Regulation, the proposal for harmonised allocation rules developed pursuant to Article 51(1) of the FCA Regulation may also contain regional or bidding zone border specific requirements. These requirements may be developed by TSOs of each CCR and submitted to the concerned regulatory authorities for approval and to the Agency for information.

Action 1: In April 2017, all TSOs of each CCR submitted to the concerned regulatory authorities and the Agency the proposals for the regional or bidding zone border specific requirements of harmonised allocation rules.

Action 2: In October 2017, the regulatory authorities of all CCRs, except CCR SEE, approved the proposals for the regional or bidding zone border specific requirements of harmonised allocation rules.

Action 3: In October 2017, the regulatory authorities of CCR SEE referred the proposal for the regional or bidding zone border specific requirements of harmonised allocation rules to the Agency for a decision in accordance with the procedure set out in Article 4(11) of the FCA Regulation. The reason for the referral was that they were not able to reach an agreement on the proposal.

Action 4: In December 2017, the Agency adopted a decision on the proposal for the regional or bidding zone border specific requirements of harmonised allocation rules for CCR SEE.

You can find documents related to the above actions here.

You can find the exact dates of the above actions in the implementation table here.

You can find the approved regional requirements of the harmonised allocation rules here.

 

Congestion income distribution methodology

Pursuant to Article 57(1) of the FCA Regulation, all TSOs need to develop a proposal for a methodology for sharing congestion income from forward capacity allocation and submit it to the concerned regulatory authorities for approval and to the Agency for information.

Action 1: By July 2018, all TSOs submitted all regulatory authorities and the Agency the proposal for the congestion income distribution methodology.

You can find documents related to the above actions here.

You can find the exact dates of the above actions in the implementation table here.

 

Sharing of LTTRs' firmness and remuneration costs

Pursuant to Article 61(3) of the FCA Regulation, all TSOs need to develop a methodology for sharing of LTTRs' firmness and remuneration costs and submit it to the concerned regulatory authorities for approval and to the Agency for information.

No actions have been completed yet with regard to this topic.

 

The Agency maintains this site to enhance public access to information about the approvals of those terms and conditions or methodologies developed under the network codes/guidelines which require coordination of at least two regulatory authorities. The information on this site is for informational purpose only and does not replace the officially adopted text of the terms and conditions or methodologies in the legally binding documents. The information on this site is based on input from regulatory authorities, transmissions system operators and nominated electricity market operators. The Agency's goal is to keep the information on this site accurate and timely, subject to the provision of the information to the Agency and subject to confidentiality restrictions. If errors are brought to the Agency's attention, it will contact the relevant information provider and try to correct the errors. However, the Agency accepts no responsibility or liability whatsoever with regard to the information on this site and, where this information is linked to external sites, to the information on those external sites.