What is the difference between the Point-to-Point (PTP) option and PTP obligation?
The difference between PTP options and PTP obligations is in the payments that their owners receive. The payments to owners of PTP Congestion Revenue Rights (CRRs) are determined by the price differences between defined point of injection and point of withdrawal. Owners of PTP obligations receive the price differences for all hours. If the price difference is negative, the owner of a PTP obligation would be ‘obligated’ to pay that difference. Owners of PTP options only receive payment if the price difference is positive.
