Power price hedging – Nordic regulators seek market participants’ views

The Norwegian, Swedish and Danish national energy regulators are currently assessing whether market participants have sufficient opportunities to hedge their power price risk. All market participants are strongly encouraged to make their views known to the regulators in an open survey on power price hedging that closes Thursday, 19 November.

Power price hedging

Ei, DUR and NVE-RME (the national energy regulators) are assessing power price hedging opportunities in their respective bidding zones to determine whether changes can or should be made to the current market arrangements. This relates to the analysis of cross-zonal hedging opportunities set out in Article 30 of Commission Regulation (EU) 2016/1719 of 26 September 2016 establishing a guideline on forward capacity allocation (FCA GL). Their assessments are likely to be published around April 2021.

In support of this work, THEMA Consulting Group has been commissioned to conduct a study of hedging strategies and bilateral hedging in the Nordic markets.
To ensure that these assessments reflect the needs and experience of market participants, all market participants with an interest in power price hedging are strongly encouraged to participate in a short online survey. The survey takes approximately 2-15 minutes to complete depending on the variety of hedging instruments relevant to your organisation. Responses can be edited over multiple sessions if required.

Participants have the option to receive a copy of the anonymised final report. Willing participants may also be subsequently interviewed.
To access the survey, please follow the link here.
Note that any commercially confidential information provided will be protected.

The survey itself covers:

  • Market participant’s views on the sufficiency of current power price hedging opportunities;
  • Market participant’s thoughts on possible improvements to the current arrangements;
  • The instruments participants’ use to hedge power price risk and how these are combined; and,
  • Participants’ experience of hedging transaction costs and the availability of relevant information

If you have questions about this survey, please contact sigrid.austad@thema.no

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