The bidding zones applicable to the day-ahead and intraday trading shall apply to forward capacity calculation and allocation.
General principles for forward capacity allocation
The allocation shall use the marginal pricing principle to generate results for each bidding zone border, direction of utilisation, and market time unit, allocate no more than the offered long-term cross-zonal capacity and be repeatable.
Decision on cross-zonal risk hedging opportunities
TSOs shall issue long-term transmission rights unless the relevant regulatory authorities of the bidding zone border have adopted coordinated decisions not to issue long-term transmission rights on this border.
TSOs on a bidding zone border shall issue long-term transmission rights unless the relevant regulatory authorities of the bidding zone border have adopted coordinated decisions not to issue long-term transmission rights on the bidding zone border.
Where long-term transmission rights do not exist on a bidding zone border at the entry into force of this Regulation, the competent regulatory authorities of the bidding zone border shall adopt coordinated decisions on the introduction of long-term transmission rights no later than 30 June 2024.
The above-mentioned decisions shall be based on an assessment that identifies whether the electricity forward market provides sufficient hedging opportunities in the relevant bidding zones.
Regional design of long-term transmission rights:
Long-term cross-zonal capacity shall be allocated to market participants by the allocation platform in the form of physical transmission rights pursuant to the UIOSI (use-it-or-sell-it) principle, or in the form of FTRs-options or FTRs-obligations.
Long-term cross-zonal capacity shall be allocated in the form of physical transmission rights pursuant to the UIOSI (use-it-or-sell-it) principle, or in the form of FTRs-options or FTRs-obligations.
All TSOs issuing long-term transmission rights shall offer long-term cross-zonal capacity through the single allocation platform to market participants for at least annual and monthly time frames.
By 30 June 2024, TSOs in each capacity calculation region shall jointly develop a proposal for the regional design of long-term transmission rights to be issued for each bidding zone border within the capacity calculation region.
The allocation in parallel of physical transmission rights and FTRs-options at the same bidding zone border is not allowed. The allocation in parallel of physical transmission rights and FTRs-obligations at the same bidding zone border is not allowed.
Nomination procedure for physical transmission rights
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.
By 31 December 2024, all TSOs issuing physical transmission rights on a bidding zone border shall submit for approval to the relevant regulatory authorities a proposal for nomination rules for electricity exchange schedules between bidding zones.
All TSOs shall progressively harmonise the nomination rules for all bidding zone borders on which physical transmission rights are applied.
Introduction of harmonised allocation rules for long-term transmission rights
By 30 June 2023, all TSOs shall apply the harmonised allocation rules for long-term transmission rights.
Once the regional requirements enter into force, they shall prevail over the general requirements defined in the harmonised allocation rules.
Firmness of allocated cross-zonal capacity
All TSOs shall be entitled to curtail long-term transmission rights to ensure operation remains within security limits prior to the day-ahead firmness deadline.
Where TSOs curtail long-term transmission rights, they shall report this to the respective regulatory authorities and publish the factual reasons that lead to the curtailment (e.g., force majeure, etc.).
The holders of curtailed long-term transmission rights shall be compensated with the market spread.
TSOs may propose a cap on the total compensation to be paid to all holders of curtailed long-term transmission rights in the relevant calendar year or the relevant calendar month. Where TSOs propose to apply a cap, they shall jointly propose a set of compensation rules to the applied cap.