Information regarding 2020 Yearly auction on Estonia - Latvia border and application of the amended Harmonised Allocation Rules

Dear Market Participants,

In accordance with the amendment notice published by JAO, the amended Harmonised Allocation Rules (hereafter HAR) will enter into force on 1 January 2020 and shall apply for capacity allocation for all long-term transmission rights with a delivery period starting from 1 January 2020.

However, please notice that 2020 Yearly FTR auction on Estonia - Latvia border will be conducted under the existing HAR in force as the amended HAR may be applied only one month after the publication. JAO published the HAR amendment on 7th of November 2019 meaning, it applies to auctions executed after 7th of December 2019.

This means, that requirements provided in the Estonia-Latvia Bidding Zone Border Specific Annex for the Baltic Capacity Calculation Region to the Harmonised Allocation Rules that maximum volume of one Bid per Registered Participant is one third (1/3) of the Auction Capacity and maximum volume for the sum of all Bids per Registered Participant may not exceed Auction Capacity will still be in the force and will be applied for 2020 Yearly auction on Estonia - Latvia border. The amended HAR will enter into force on 7th of December. Therefore, quarterly auction on Estonia – Latvia will be the first auction run under the new HAR.

Additionally, would like to remind that the transmission system operators have legal obligation to apply only those methodologies that are approved by the respective national regulatory authorities, are in force and applicable. Thereby, currently only the methodology “Terms, Conditions and Methodologies on Cross-Zonal Capacity Calculation, Provision and Allocation within the Baltic States and with the 3rd Countries" (available on AST webpage) is applicable for the capacity calculation on Estonia - Latvia border.

Best regards,

JAO Operations and the Baltic TSOs Team