The interconnectors between SEM and GB markets currently sell a form of physical transmission rights. These rights enable a participant to buy interconnector capacity in an auction then nominate a flow of electricity across the interconnector within the participant’s capacity holding.
In the I-SEM arrangements, from May 2018, the forwards electricity market will be strictly financial and the interconnectors will sell Financial Transmission Rights, a form of contract for difference based on prices in two markets.
Moyle has now published a short plain English overview of Financial Transmission Rights. The note includes answers to common questions:
- What are Financial Transmission Rights?
- Will FTR pay-outs be adjusted for transmission losses?
- What is the risk of an interconnector trip to FTR holders?
- How do I buy FTRs on Moyle for the (I-)SEM-GB border?