JAO publishes FAQ guidance ahead of Long-Term Flow-Based Allocation (LTFBA) go-live across Core and Nordic borders

JAO published a dedicated FAQ document (28 September 2026) to support market participants preparing for Long-Term Flow-Based Allocation (LTFBA), covering the Simulation Platform, External Parallel Run, auction specification and offered capacity methodology, XML/API formats, collateral and credit-cover rules, and auction timing across the Core and Nordic long-term (annual and monthly) auctions.

LTFBA replaces ATC-style border-capacity-based long-term auctions with a flow-based methodology across a wide list of Core and Nordic borders, changing how capacity is offered, how bids are validated, how collateral is calculated, and how allocation results are structured. This affects FTR/PTR long-term transmission rights products used by market participants to hedge cross-border price risk, with HR-SI remaining PTR while all other Core borders move to FTR options.

This is a significant methodological shift in long-term cross-border capacity allocation, moving Core and Nordic regions from simple ATC border-capacity auctions to flow-based domain optimization (RAM, PTDF, MaxBex constraints) for annual and monthly FTR/PTR auctions. The FAQ clarifies that no simplified border-level MW indicator will be provided, meaning participants must rely on flow-based domain files and their own commercial modelling to size bids—raising the analytical burden on smaller participants relative to sophisticated flow-based modelers. Collateral/MPO calculations remain governed by EU HAR Article 34 with a dynamically calculated bid price cap published T-2 working days before gate closure, preserving continuity in credit-cover mechanics despite the allocation-method change. XML/API continuity (ECAN/IEC formats, no new endpoints) suggests JAO is minimizing operational disruption for system integration while the core allocation logic changes substantially. The explicit note that the final auction calendar will be published in the first half of October, with indicative auction timing (~5 days yearly, ~2 days monthly), signals imminent go-live, though no exact go-live date is yet confirmed in this source.

EU Harmonised Allocation Rules (HAR), specifically Article 34 (MPO and bid price cap calculation) and Article 28.3(b) (publication timing of bid collateral price cap)

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