ACER’s Decision Seeks To Improve Risk Hedging Opportunities On The Bidding Zone Borders Between Finland And Sweden

The EU Agency for the Cooperation of Energy Regulators (ACER) has reached a decision on how to address the insufficient risk hedging opportunities on the bidding zone borders between Finland and Sweden.

An assessment performed by the National Regulatory Authorities (NRAs) indicated insufficient hedging opportunities in the Finnish bidding zone. To improve such opportunities, NRAs can request their Transmission System Operators (TSOs) either to issue long-term transmission rights (LTTRs) or to ensure the availability of other long-term cross-zonal hedging products that support the functioning of the wholesale electricity markets. As the NRAs could not reach an agreement on this matter, they have referred to ACER for decision.

ACER requests the Finnish and the Swedish Transmission System Operators (TSOs) not to issue long-term transmission rights (LTTRs) but instead to ensure the availability of other long-term cross-zonal hedging products and recommends EPAD coupling.

ACER’s decision will promote long-term cross-zonal trade by improving the availability of long-term cross-zonal hedging opportunities for market participants.