On 9 May 2025, the Swedish and Lithuanian national regulatory authorities (Energy Markets Inspectorate and National Energy Regulatory Council, respectively) requested from ACER a six-month extension to reach a joint decision on electricity cross-zonal risk hedging opportunities at the Swedish-Lithuanian border.
On 11 August 2025, ACER has granted the requested extension. The regulators now have until 12 November 2025 to decide on the matter.
What is this about?
Cross-zonal risk hedging opportunities are strategies used by electricity market participants to mitigate price volatility risks across different bidding zones. They are important for ensuring the proper functioning of EU's wholesale electricity markets and protecting market participants from price uncertainty.
Under the Forward Capacity Allocation Network Code, national regulatory authorities must assess whether forward electricity markets in their respective bidding zones offer sufficient hedging opportunities. If these are deemed insufficient, the regulators must coordinate to either:
- introduce long-term transmission rights; or
- task transmission system operators (TSOs) with implementing alternative measures that enhance cross-zonal hedging.
To meet this requirement, the Swedish and Lithuanian regulators asked their TSOs to propose alternative measures to improve hedging opportunities in the Lithuanian bidding zone. The TSOs submitted a joint proposal to the regulators, but since some aspects were unclear, the regulators requested more time for a thorough review.
