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Financial transmission right (FTR) — Energy Glossary | Pilot Energy

Written by Pilot Energy | May 26, 2026 4:22:25 PM

Financial transmission right (FTR)

Category: Markets

A financial instrument that entitles the holder to a stream of revenue based on congestion charges between two points on the transmission grid. FTRs are used to hedge against basis risk between a contract hub and a delivery node.

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