ENTSO-E Resubmits Network Code on Forward Capacity Allocation

ENTSO-E has resubmitted the Network Code on Forward Capacity Allocation (NC FCA) to the the Agency for the Cooperation of Energy Regulators (ACER).

In the accompanying letter, ENTSO-E outlined its view that that the updated code, which was amended to reflect points made by the Agency in its reasoned opinion published on the 20 December 2013, fully complies with the framework guideline on Capacity Allocation and Congestion Management (CACM).

In addition to the revised code ENTSO-E also submitted to ACER:

- a supporting document to explain changes made in the resubmitted version,
- a specific explanatory document on firmness.

The firmness document outlines, in detail, the rational for proposals within the code for a "capped" firmness regime. This improvement is supported by reinforced cost recovery provisions, which are an essential pre-requisite for the TSOs' recovery of compensation payments.

The document, which evaluates different options for firmness regimes against their respective compensation costs, reinforces ENTSO-E's approach, which ensures market friendly compensation provisions, while allowing TSOs to provide maximum capacity to the market.

This firmness regime avoids the possibility, that in extreme circumstances disproportionate costs to ensure firmness would automatically transfer to the end consumer. In this sense, it is the most appropriate solution to deliver competitive electricity prices to European consumers.

ENTSO-E is confident that the NC FCA constitutes a significant step forward in the creation of the Internal Electricity Market in Europe and looks forward to continuing engagement with the EC and ACER in the coming months to ensure the code proceeds to the adoption phase as soon as possible.