Forward Capacity Allocation

The Network Code on Forward Capacity Allocation deals with rules for long term markets, the forward markets. These have an important role in allowing market participants to secure capacity on cross border lines a long time in advance and therefore have a sort of trade insurance.

Current Status
Entered into force
Read Code

Published Regulation

The published network codes become regulations. Use this section 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

Implementation - Making the code a reality

Harmonisation of Allocation Rules

It sets out rules regarding the type of long term transmission rights that can be allocated via explicit auction and the way holders of transmission rights are compensated in case their right is curtailed.

View

Latest Updates (5)

Events (12)

European Stakeholder Committee

History & Development of the network code

View network code development information

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.

GET THE MOST POWERFUL NEWSLETTER IN BRUSSELS