Feedback sought on proposed FTR change

We are seeking feedback on a proposal to remove the requirement for the Financial Transmission Rights (FTR) manager to calculate the amount of loss and constraint excess (LCE) to make available to settle the FTR market.

The FTR market is settled using a combination of LCE and FTR auction revenue.

Currently the FTR manager is required to calculate the amount of LCE needed to fund FTR settlement in accordance with Schedule 14.3 of the Code. This calculation is costly and complex.

Should the FTR market grow from eight to 10 (or more) hubs the calculation may become unworkable. The FTR manager is currently carrying out an FTR hub review, which may result in more hubs being added.

The FTR portion of LCE has averaged 91% of the total available LCE since the market moved to eight FTR hubs. We propose to remove the calculation requirements in Schedule 14.3 and instead make all LCE available to settle the FTR market.

This change will support the future development of the FTR market.

We welcome your feedback by 5pm, 22 July 2026.

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