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 jointly decide on electricity cross-zonal risk hedging opportunities.
What are cross-zonal risk hedging opportunities?
Cross-zonal risk hedging opportunities are strategies used by electricity market participants to mitigate price volatility risks across different bidding zones. They are important to ensure the proper functioning of the EU’s wholesale electricity markets and protecting market participants from price uncertainty.
Why an ACER Decision?
In accordance with the Forward Capacity Allocation network code, the Swedish and Lithuanian national regulators tasked transmission system operators to propose alternative measures to improve cross-zonal hedging opportunities in the Lithuanian bidding zone.
The Swedish and Lithuanian transmission system operators submitted a joint proposal to their national regulators, but it contained some ambiguities.
Therefore, both regulators requested ACER additional time to assess the system operators’ proposal. According to the ACER Regulation, ACER is mandated to grant this extension.
ACER intends to act promptly on this request, aiming to reach a decision by the end of September 2025.
Access the Public Notice.
