PC_2024_E_11 - Public consultation on NL-NO hedging opportunities

On 16 August 2024, the National Regulatory Authority (NRA) of the Netherlands asked ACER to decide on how to address the insufficient risk hedging opportunities at the bidding zone border between the Netherlands and Norway.

Why is a decision needed?

The assessments performed by the Dutch and Norwegian NRAs found insufficient hedging opportunities in their respective bidding zones. Sufficient long-term hedging opportunities are important to allow market participants to be protected against price volatility risks and to mitigate uncertainty on future returns on investments.

To improve this, NRAs can:

• Request their Transmission System Operators to issue long-term transmission rights.
• Ensure the availability of other long-term cross-zonal hedging products that can support the wholesale electricity market functioning.

Since the NRAs could not reach an agreement, the decision was referred to ACER and the EFTA Surveillance Authority.

To inform its decision-making process, ACER is collecting inputs from stakeholders on:

• the state of hedging opportunities;
• the potential of long-term transmission rights or other measures.

Access the survey.

Privacy statement.

ACER will take a decision on the referral from the Dutch NRA by 17 February 2025.

The EFTA Surveillance Authority will issue its own decision for Norway.