The Dynamics of Long-Term Transmission Rights

This chapter explores the political and financial implications of proposals by the ASA for redefining how European transmission system operators manage long-term transmission rights. It clarifies misconceptions about these rights being physical rather than financial derivatives, emphasizing their role in hedging against price variations. The discussion delves into the auctioning process, risks of market participation by regulated entities, and the interconnections between market dynamics and the activities of Transmission System Operators.