TSOs received additional time for developing hedging opportunities between Finland and Sweden

Commission Regulation (EU) 2016/1719 establishing a guideline on forward capacity allocation obliges transmission system operators (TSOs) to issue long-term transmission rights (LTTRs) to support the functioning of the electricity wholesale markets. Exemption is possible if the hedging opportunities of the market participants are otherwise sufficient, or if the relevant national regulators request the TSOs to make available other long-term cross-zonal hedging products to support the functioning of the wholesale electricity markets. In its decision on 14th September 2022, ACER obliged the transmission system operators in Finland and Sweden to ensure the availability of other hedging products and to develop the necessary arrangements and submit them to the competent regulatory authorities' approval no later than six months after the request by the competent regulatory authorities.

In their letter on 14th February 2023, TSOs have requested NRAs for an extension of time until 14th October 2023 to submit the proposal referred to in point 30(6) of the FCA Guidelines. Additional time is needed because this is the first time TSOs have been asked to provide hedging products other than transmission rights. Due to the novelty of the model, TSOs want to consult with stakeholders on their proposal. The new schedule allows TSOs to provide more thorough analyses of the model as well as appropriate involvement of stakeholders in the development work.

TSOs will continue to work together to develop the proposal and will host a stakeholder webinar on the topic during April. In addition, a consultation on the topic is scheduled to take place at the end of the summer holiday season in the beginning of August.

More information:

Antti Raininko, Fingrid Oyj, antti.raininko[at]fingrid.fi, tel +358 40 829 0492

Asta Sihvonen-Punkka, Fingrid Oyj, asta.sihvonen-punkka[at]fingrid.fi, tel +358 50 573 9053