Commission Regulation (EU) 2016/1719

In forceThis text since 15 Mar 2021law://eu/reg/2016/1719/art_35@2026-11-12

Contents

Article 35Principles for long-term transmission rights remuneration#

1.The relevant TSOs performing the allocation of transmission rights on a bidding zone border through the single allocation platform shall remunerate the long-term transmission rights holders in case the price difference is positive in the direction of the long-term transmission rights.

2.The holders of FTRs — obligations shall remunerate the relevant TSOs through the single allocation platform allocating transmission rights on a bidding zone border in case the price difference is negative in the direction of the FTRs — obligations.

3.The remuneration of long-term transmission rights in paragraphs 1 and 2 shall comply with the following principles:

(a)where the cross-zonal capacity is allocated through implicit allocation or another method resulting from a fallback situation in the day-ahead time frame, the remuneration of long-term transmission rights shall be equal to the market spread;

(b)where the cross-zonal capacity is allocated through explicit auction in the day-ahead time frame, the remuneration of long-term transmission rights shall be equal to the clearing price of the daily auction.

4.In case allocation constraints on interconnections between bidding zones have been included in the day-ahead capacity allocation process in accordance with Article 23(3) of Regulation (EU) 2015/1222, they may be taken into account for the calculation of the remuneration of long-term transmission rights pursuant to paragraph 3.

Source: EUR-Lex, © European Union, 1998-2026. Reuse authorised under Decision 2011/833/EU.

Key facts

Type: Regulation · Commission Regulation (EU) 2016/1719 · EEA relevant
Adopted: 26 Sept 2016
In force: 17 Oct 2016
Text current to: 15 Mar 2021
Made by: European Commission
Official: EUR-Lex 32016R1719 · ELI

Topics

electrical energy electricity supply energy grid energy law energy supply energy transport market access single market trans-European network Energy Internal market - Principles

History · 1 version

15 Mar 2021Reading

Connections

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Cited by 10: Directive (EU) 2019/944; Regulation (EU) 2019/9433 provisions; Council Implementing Decision (EU) 2026/19232 provisions; Council Implementing Decision (EU) 2024/14472 provisions; Council Implementing Decision (EU) 2026/480; Council Implementing Decision (EU) 2025/2157; Regulation (EU) 2019/9424 provisions; Regulation (EU) 2024/17477 provisions; Directive (EU) 2024/1711; this act3 provisions

Defined terms · 10

Show every defined term

allocation rules
means the rules for forward capacity allocation applied by the single allocation platform;
auction
means the process by which long-term cross-zonal capacity is offered and allocated to market participants who submit bids;
compensation rules
means the rules according to which each TSO responsible for the bidding zone border, where long-term transmission rights have been allocated, compensates transmission right holders for curtailing the long-term transmission rights.
forward capacity allocation
means the attribution of long-term cross-zonal capacity through an auction before the day-ahead time frame;
long-term transmission right
means a physical transmission right or a FTR — option or a FTR — obligation acquired in the forward capacity allocation;
market spread
means the difference between the hourly day-ahead prices of the two concerned bidding zones for the respective market time unit in a specific direction;
nomination
means the notification of the use of long-term cross-zonal capacity by a physical transmission rights holder and its counterparty, or an authorised third party, to the respective TSOs;
nomination rules
means the rules with regard to the notification of use of long-term cross-zonal capacity by a physical transmission rights holder and their counterparty, or an authorised third party, to the respective TSOs;
single allocation platform
means the European platform established by all TSOs for forward capacity allocation;
UIOSI
means the principle according to which the underlying cross-zonal capacity of physical transmission rights purchased and non-nominated is automatically made available for day-ahead capacity allocation and according to which the holder of these physical transmission rights receives remuneration from the TSOs.