Market information: UPDATE - New allocation rules for long-term cross border capacity rights approved
The European Harmonized Allocation Rules for Long Term Transmission Rights ( EU HAR) have been approved by the relevant National Regulatory Authorities in the CWE region. An important change of the new allocation rules is the replacement of the “Physical” transmission rights by “Financial Transmission Rights (FTR) Options” for the Belgian borders.
With the currently used Physical transmission rights, market parties may use the transmission capacity themselves, while with the FTR Options, the transmission capacity will be returned to the market in the day-ahead timeframe through the power exchanges. FTR Options that show a positive price difference between the importing and the exporting power exchange will receive a compensation based on this price difference and the allocated cross border capacity. This should improve liquidity and transparency of the day-ahead market.
For more details, we refer to the latest communication to the market players.