What is it about?
ACER promotes the bundling of standard capacity products. Bundled capacity offers and a single nomination procedure are relevant instruments to ensure the designed capacity allocation mechanisms reach their full potential.
Capacity allocation mechanisms require achieving a necessary degree of harmonisation across the European Union. Bundled capacity is part of the harmonisation goals and requires that capacity is sold in a single bundle, meaning that entry and exit volumes are offered and sold as a single product at every interconnection point in the European Union. The Code has foreseen a voluntary approach to bundle capacity contracts in case of already contracted transport capacity. The new contracts however have to be sold as bundled capacity.
Single-sided nominations allow users to nominate themselves and their contractual counterparty in a single process. The process is guided by the active transmission system operator, while the counterparty operator follows its lead. The aim is to simplify the administrative burden of the commercial activity.
The Capacity Conversion model allows for a non-discriminatory, free-of charge conversion service for annual, quarterly or monthly firm capacity products. Conversion is beneficial for those network users who hold unbundled capacity at one side of an interconnection point. The network users can acquire bundled capacities in auctions, which means they would purchase both entry and exit capacity in a single capacity bundle. The conversion will prevent network users with unbundled capacity to pay entry or exit capacity charges twice.