Harmonisation of Allocation Rules
Developing and setting the harmonisation of allocation rules for Europe.
ViewForward Capacity Allocation
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Entered into force
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Published code - table of contents
Use the section below for a handy way to jump to a particular article of the network code.
COMMISSION REGULATION (EU) 2016/1719
of 26 September 2016
establishing a guideline on forward capacity allocation
- Article 1 - Subject matter and scope
- Article 2 - Definitions
- Article 3 - Objectives of forward capacity allocation
- Article 4 - Adoption of terms and conditions or methodologies
- Article 5 - Stakeholder involvement
- Article 6 - Consultation
- Article 7 - Confidentiality obligations
- Article 8 - Capacity calculation regions
- Article 9 - Capacity calculation time frames
- Article 10 - Capacity calculation methodology
- Article 11 - Reliability margin methodology
- Article 12 - Methodologies for operational security limits and contingencies
- Article 13 - Generation shift keys methodology
- Article 14 - Methodology for remedial actions
- Article 15 - Cross-zonal capacity validation methodology
- Article 16 - Methodology for splitting long-term cross-zonal capacity
- Article 17 - Generation and load data provision methodology
- Article 18 - Common grid model methodology
- Article 19 - Scenarios
- Article 20 - Individual grid model
- Article 21 - General provisions
- Article 22 - Creation of a common grid model
- Article 23 - Regional calculations of long-term cross-zonal capacities
- Article 24 - Validation and delivery of cross-zonal capacity and split cross-zonal capacity
- Article 25 - Coordinated curtailment of cross-zonal capacity
- Article 26 - Biennial report on capacity calculation and allocation
- Article 27 - General provisions
- Article 28 - General principles
- Article 29 - Input and results
- Article 30 - Decision on cross-zonal risk hedging opportunities
- Article 31 - Regional design of long-term transmission rights
- Article 32 - Physical transmission rights
- Article 33 - Financial transmission rights — options
- Article 34 - Financial transmission rights — obligations
- Article 35 - Principles for long-term transmission rights remuneration
- Article 36 - General provisions for physical transmission rights nomination
- Article 37 - Terms and conditions for participation in the forward capacity allocation
- Article 38 - Submission of input data to the single allocation platform
- Article 39 - Operation of the forward capacity allocation
- Article 40 - Pricing of the long-term transmission rights
- Article 41 - Financial requirements and settlement
- Article 42 - Establishment of fallback procedures
- Article 43 - Return of long-term transmission rights
- Article 44 - Transfer of long-term transmission rights
- Article 45 - Delivery of results
- Article 46 - Initiation of fallback procedures
- Article 47 - Publication of market information
- Article 48 - Establishment
- Article 49 - Functional requirements
- Article 50 - General tasks
- Article 51 - Introduction of harmonised allocation rules
- Article 52 - Requirements for the harmonised allocation rules
- Article 53 - General firmness provisions
- Article 54 - Definition of caps
- Article 55 - Compensation rules
- Article 56 - Firmness in the event of force majeure
- Article 57 - Congestion income distribution methodology
- Article 58 - General provisions on cost recovery
- Article 59 - Cost of establishing, developing and operating the single allocation platform
- Article 60 - Cost of establishing and operating the coordinated capacity calculation process
- Article 61 - Cost of ensuring firmness and remuneration of long-term transmission rights
- Article 62 - Delegation of tasks
- Article 63 - Monitoring
- Article 64 - Entry into force
Making the code a reality
European Stakeholder Committees
Market Stakeholder Committee
Grid Connection Stakeholder Committee
System Operations Stakeholder Committee
ARCHIVED CONTENT FROM CURRENT SITE
Below you will find the Frequently asked questions relating to the network code Forward Capacity Allocation.
ENTSO-E is working to develop pan-European markets in all timescales. These timescales range from markets for securing capacity several years ahead of real time, to day ahead, intra-day and real time balancing markets. Putting in place harmonised cross border markets in all timeframes will lead to a more efficient European market and benefits to customers. Forward markets have an important role in allowing parties to secure capacity and hedge positions ahead of the day-ahead timeframe. The network code on Forward Capacity Allocation will ensure that this can happen in the future pan-European market.
Latest Status Update (December 2015)
On 1 October 2013, ENTSO-E delivered the Network Code on Forward Capacity Allocation (NC FCA), and supporting document with a letter, to the Agency for the Cooperation of Energy Regulators (ACER). In December 2013, ACER published an opinion on the code, where the Agency outlined a number of issues on which adjustments were required.
On Friday 30 October, the draft Forward Capacity Allocation (FCA) Regulation, was adopted by Member States, the 5th in the last year. The text will now enter a period of scrutiny during which the European Parliament and European Council will analyse its compliance with the 3rd energy package and the general principles of the European Union. The draft code and all the related documents can be downloaded from the links in the table below.
An overview of the latest developments for all network codes is available.
Early implementation
Network codes need to be finalised and adopted by Member States, and are therefore expected to evolve over time. TSOs have however decided to begin the early implementation of a number of projects, as suggested by regulators. This will contribute to faster delivery of the IEM. One of these projects is the Harmonisation of long term Allocation Rules (HAR), which is expected to be delivered before 1/1/2016. A stakeholder advisory group was set up, and a public consultation organised in Q1 2015. Further information is accessible on this page.
Stakeholder Engagement
ENTSO-E’s stakeholder engagement will comprise of Stakeholder Advisory Group Meetings and Public Stakeholder Workshops, as well as ad-hoc meetings and exchange of views with any interested party as appropriate. The FCA Stakeholder Advisory Group (SAG) consists of 15 members from 6 different associations and companies as well as from ACER and National Regulatory Authorities. The chosen composition of representatives is to ensure that the full spectrum of impacted stakeholders can express their views during the discussions. The draft Terms of Reference of the FCA SAG can be viewed here.
All material, including minutes and presentations from meetings will be made public.
Stakeholder Advisory Group Meetings
2013-08-28
View Documents
2013-06-18
View Documents
2013-01-30
View Documents
2012-11-26
View Documents
2012-10-01
View Documents
Related Documents and Links
2014-04-03
2014-04-02
2014-01-21
2014-01-14
2013-12-18
2013-10-01
2013-08-13
2012-02-12
2011-06-28
Frequently asked questions
Answers to all your questions nicely grouped by topic.
INTRODUCING THE NETWORK CODE
Electricity can be traded in various different timescales. This can be anything from a year or more before the energy is to be delivered (called the forward markets), until the day before the energy is to be delivered (the day ahead market) or even on the day of delivery itself (the intraday market).
In each of these markets, companies that want to buy an entitlement to use part of the available cross-border transmission capacity at a point in the future capacity, to flow energy between countries bid for it through auctions. Parties that are successful in the auctions are allocated capacity (in the form of transmission rights). The Network Code on Forward Capacity Allocation (NC FCA) covers the design and operation of the markets in which the right to use cross-border capacity is sold in advance (be that weeks, months or even years before it will actually be used).
The implementation of the NC FCA will ensure that appropriate cross-border hedging opportunities are offered on all borders. Transmission system operators (TSOs) will have to offer market participants either physical or financial long-term transmission rights (allowing them to hedge volatility in price differences between different bidding zones within day ahead markets and reducing risk).
Another significant goal is to establish a single allocation platform, which will become a single point of contact for each market player wanting to participate in auctions for transmission capacity. This single set of rules will reduce the costs of participating in the market and increase efficiency.
INTERACTIONS NETWORK CODES
The framework guideline on Capacity Allocation and Congestion Management (NC CACM) covers day ahead and intraday markets in addition to forward markets. The NC CACM will be merged with the European Commission’s Governance Guideline.
As both the CACM and FCA network codes deal with the allocation of cross-zonal capacity, there are very strong interactions between these two network codes, in particular the overlaps between the long-term and day ahead timeframes and on capacity calculation and bidding zones. The NC FCA contains cross-references to the NC CACM articles which will be applicable to all timeframes and thus, to the NC FCA as well.