Draft EU rules on allocating forward electricity capacity have received a key approval from an EU committee of national government officials, formal EU power grid operators' body Entso-e said late Monday.
"Clear rules on long-term trading promote the development of liquid and competitive electricity markets in a coordinated way across Europe," Entso-e secretary-general Konstantin Staschus said.
"Long-term transmission rights facilitate cross-border trading, competition and provide efficient and reliable long-term price indication," he added.
The draft EU forward capacity allocation network code sets out the rules for allocating long-term transmission rights, including the type and quantity of the rights, how they are allocated and how to compensate buyers if their rights are curtailed.
It is the fifth network code to pass this key approval stage, following three grid connection codes and a capacity allocation and congestion management code focused on day-ahead and intraday.
The network codes are developed under a process set out in the EU's third energy package which involves Entso-e, the European Commission, regulators, industry and national governments.
The next stage is for the draft code to be scrutinized by the European Parliament and the EU Council, representing the EU's 28 national governments.
If they do not object, the EC can make the code binding.
