National FTR values almost flat on month, but surge year to year

摘要

The value of financial transmission rights for June contracts traded in May were almost flat with April, but up by almost 25% in comparison with the June 2018 contracts. The volume more than doubled, year on year, possibly in anticipation of heavier summertime loads. 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.