The FCA GL governs the allocation of long-term transmission rights (LTTRs) between bidding zones, enabling market participants to hedge against price differences across borders. Latest consolidated version: 15/03/2021
It sets out rules on:
- Harmonised LTTR auctions and nomination rights.
- Allocation platforms (e.g. JAO) and auction timelines.
- Firmness regimes and compensation rules.
- Secondary market trading of LTTRs.
- Splitting and merging of bidding zone borders.
FCA GL underpins forward hedging of cross-zonal risk. It is essential for electricity traders managing long-term positions, PPA pricing, and forward market exposure. Auction outcomes affect long-term price expectations and investment signals. Efficient allocation and liquidity in LTTRs are critical for well-functioning forward markets and for compliance with hedging obligations under EMIR and CRR.