National FTR contract capacity volume, value up on year, down on month

摘要

The volume and value of financial transmission rights traded in October for November contracts increased year on year, possibly in anticipation of heavier weather-related loads, but they were down on the month as shoulder season takes hold, an S&P Global Platts analysis showed. FTRs - also known as congestion revenue rights, transmission congestion contracts and transmission congestion rights in some markets - are financial instruments that allow market participants to offset potential losses or hedge against the congestion component of locational marginal prices in day-ahead electricity markets. An FTR obligation contract entitles the holder to be compensated if congestion occurs between two points on the grid in the same direction as stated in the contract. The contract holder is charged if congestion occurs in the opposite direction stated in the contract. This analysis is limited to the monthly FTR obligations market, and does not cover FTR options or long-term FTR markets, which can include quarterly and annual FTR contracts.