On the 24 December 2020, the United Kingdom (“UK”) and the European Union (“EU”) agreed the Trade and Cooperation Agreement (“the Agreement”), which took effect provisionally from 1 January 2021 and then entered into force on 1 May 2021. The Agreement requires Transmission System Operators (“TSOs”) to develop new procedures for the allocation of cross-border capacity on electricity interconnectors at the day-ahead timeframe, based on the concept of multi-region loose volume coupling. The overall objective of the new procedures shall be to maximise the benefits of trade.
This consultation sets out Ofgem’s proposed approach to the allocation, recovery and assessment of development and operational costs for the day-ahead trading arrangements based on the concept of multi-region loose volume coupling as outlined in the EU – UK Trade and Cooperation Agreement.
If you wish to respond to this consultation, please send your views to Mertcan.Agir@ofgem.gov.uk by 24 June 2021.