All TSOs’ proposal for amendments of the methodology for Harmonised Allocation Rules for long-term transmission rights

Overview

This consultation is based on Article 6 of Commission Regulation (EU) 2016/1719 (FCA Regulation) and concerns the review of Harmonised Allocation Rules for long-term transmission rights (HAR) in accordance with Article 68(5) of these rules.

The current amendment proposal contains (1) MTU-related changes; (2) changes related to Registration; (3) Refusal of application, suspension, termination; (4) Clarification on prices; (5) Price cap publication;  (6) Financial-related changes; and (7) Additional clarifications and corrections.

(1) MTU-related changes;

The term ‘MTU’ (market time unit) was introduced in the HAR during its previous amendment, in order to make the rules future proof. In the HAR several clarifications have been introduced, amongst others to differentiate the MTU applied in SDAC (Single Day-Ahead Coupling) and Long-Term auctions as it is aimed that in SDAC the MTU shall change in the foreseeable future.

(2) Changes related to Registration;

Clarifications have been introduced in the HAR on the requirement for the VAT number to correspond to with the country of the market participant’s registered address and the requirements of the use of qualified electronic signatures. Also, changes have been introduce to further clarify the signatory process.

(3) Refusal of application, suspension, termination;

Based on actual cases, additional grounds for refusing an application or suspending/terminating a registered participant in Article 15(1), Article 71(1) and Article 72(5) were added.

(4) Clarification on prices;

In light of the latest SDAC decoupling events, we propose a clarification regarding the prices to be used for market spread calculation in bidding zones with Multiple NEMOs Arrangement (MNA).

(5) Price cap publication;  

A change has been introduced to enable all market participants to calculate the collaterals before making their bids. 

(6) Financial-related changes; and

The changes are introduced to improve clarity on the financial deadlines and the processing period in case of a dispute. Also, the alternative payment solutions have been removed as in practice these are not used.

(7) Additional clarifications and corrections.

Additional clarifications are introduced regarding the suspension due to sanction and the cancellation reimbursements. Also, feedback from the last HAR review has been further incorporated, such as the use of the term “oriented bidding zone”.

Additional explanatory note will be provided mid-January. 

Why your views matter

We are seeking input and feedback on the above proposed changes from relevant stakeholders, market participants, and NRAs for the proposal for amendment of the methodology for Harmonised Allocation Rules.