The FTR Allocation Plan plays a key role in defining the FTR market under subpart 6 of Part 13 of the Electricity Industry Participation Code 2010 (the Code). The FTR Allocation Plan, known as the FTR Allocation Plan 2012, was issued by the FTR Manager under clause 13.238 of the Code for approval by the Electricity Authority (the Authority) under clause 13.240 of the Code. Part 13 of the Electricity Industry Participation Code (the Code) provides for the creation and allocation of financial transmission rights (FTRs) by the FTR Manager. Clause 13.238 of the Code specifically requires the FTR Manager to prepare an FTR Allocation Plan, consult on it with market participants and have the final form of it approved by the Authority.
The approach taken to FTR Allocation Plan 2012 is based on the requirements of the Code, the functional requirements on the FTR Manager set out in the FTR Manager Service Provider Agreement, and the existing capabilities of the Nexant i-HEDGE system.
The core requirements for the FTR Allocation Plan are set out in Schedule 13.5 of the Code. In particular, the plan must cover:
- the design of FTRs;
- the FTR auction design;
- the FTR grid design.
The FTR Allocation Plan sets out:
- the products on offer in FTR auctions and the terms of those products;
- the requirements that a party must meet in order to participate in an FTR auction, hold an FTR, or be assigned an FTR;
- the FTR auction rules and how FTR auctions will operate;
- the process and approach that will be used to determine the FTR Grid and which underpins the volume of FTRs available in FTR auctions;
- how the FTR register will operate;
- the assignment (or bilateral trading) of FTRs.
Operational day to day activities are managed by a series of policy documents. The policies are available for download from the FTR Manager Documents.
Any party can propose changes to the Allocation Plan and the Policies that support it. Proposal for change are to be submitted to the FTR Manager (email@example.com). Changes to the Allocation Plan must be consulted on with the industry before being submitted to the Authority for approval. Policy changes will be considered by the FTR Manager and discussed with the FTR User Group before being implemented.
FTR Allocation Plan 2018 Approval
On the 8th February 2018, the FTR Managed announced that EA Board approved the FTR Manager’s recommended Allocation Plan (7th Feb 2018). The final and approved version is available below. Please note that while earlier comms and consultation referred to AP17, given that the plan becomes operational in May 2018, it was called AP18.