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Future relationship between the UK and the EU - LTTRs GB-NI and GB-IE

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Dear Market Participants

 

Following communication on 9th of July 2020 from the commission to the European parliament about readiness at the end of the transition period between the European Union and the United Kingdom on 1st of January 2021*, we would like to remind you that from this date, the United Kingdom exiting the Internal Energy Market (IEM), would mean that the Long Term Transmission Rights (LTTRs) on borders with Great Britain would no longer be governed by the Harmonised Allocation Rules for long-term transmission rights in accordance with Article 51 of Commission Regulation (EU) 2016/1719 of 26 September 2016 establishing a Guideline on Forward Capacity Allocation.

 

As communicated in 2019 and during the summer 2020, and discussed in previous conference calls, in the event that negotiations on the future relationship between the UK and the EU lead to the UK exiting the IEM and as a result the GB-NI and GB-IE bidding zone borders no longer exist under the FCA, the holders of LTTRs on the GB-NI and GB-IE borders for affected periods shall be entitled to reimbursement based on the initial price paid for the LTTRs in line with article 27 of the FCA. Currently, without any extension announced to the existing 31.12.2020 deadline, the affected period would be any capacity already allocated for 2021.

 

Practically, this would mean that JAO would reimburse the amounts already paid for 2021 GB-NI and GB-IE LTTRs and the amounts considered within the credit limit calculation will be unblocked as from the moment the rights cease to be held. The reimbursement of the initially paid amounts will be handled in the regular invoice run in January 2021.

 

We invite you to join a conference call on Tuesday 22nd December at 15:00 CET where we will address any questions you may still have. Details for the call have been sent by e-mail to registered participants.

 

* Https://ec.europa.eu/info/sites/info/files/brexit_files/info_site/com_2020_324_2_communication_from_commission_to_inst_en_0.pdf