Day-ahead firmness deadline (DAFD)
'Day-ahead firmness deadline' (DAFD) means the point in time after which cross-zonal capacity becomes firm (Article 2(35) of the Regulation establishing a Guideline on Capacity Allocation and Congestion Management - CACM (Regulation on market coupling)).
Recital 12 of the Network Code on Forward Capacity Allocation
Caps on the compensation to be paid to holders whose long-term transmission rights have been curtailed before the day-ahead firmness deadline may be introduced, taking into the account the liquidity of the relevant markets and the possibility for market participants to adjust their positions.
Pursuant to Article 69 of the CACM Regulation, all Transmission System Operators (TSOs) need to develop a proposal for the single pan-European day-ahead firmness deadline and submit it to all national regulatory authorities (NRAs) for approval and to the Agency for the Cooperation of Energy Operators (ACER) for information.
In effect, the same deadline will apply to all market participants across all capacity calculation regions (CCRs) and all market participants will have the same time to adapt their positions, if needed.
The day-ahead firmness deadline should be implemented on a bidding zone border immediately after both:
- the capacity calculation methodologies developed in accordance with Article 20 of the CACM Regulation, and
- the day-ahead Market Coupling Operator (MCO) function developed in accordance with Article 7(3) of the CACM Regulation;
are implemented on that bidding zone border.
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See also:
Intraday Cross-Zonal Gate Closure Time (IDCZGCT)
Intraday Cross-Zonal Gate Opening Time (IDCZGOT)
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The DAFD is proposed to be half an hour before the day-ahead market gate closure time (All TSOs' proposal of 7 April 2016 for the day-ahead firmness deadline (DAFD) in accordance with Article 69 of the Commission Regulation (EU) 2015/1222 of 24 July 2015 establishing a guideline on capacity allocation and congestion management), which is in accordance with the time-limit established in Article 69 of the CACM.
A single DAFD allows having a common firmness principle for curtailed Long Term Transmission Rights (LTTRs) for the whole European Union.
Article 58 of the Harmonised allocation rules for long‐term transmission rights (HAR), as established in the Annex to the Decision of the ACER No 14/2019 of 29 October 2019, stipulates that the Single Allocation Platform (SAP) is required to publish on its website - and take into account for the calculation of compensation for curtailed LTTRs - the DAFD, as specified in the proposal pursuant to the aforementioned Article 69 of the CACM approved by all concerned NRAs.