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The NERC invites participation in the public consultation on cross-zonal risk hedging opportunities for electricity

The National Energy Regulatory Council (NERC), following the European Commission Regulation (EU) No. 2016/1719 of 26 September 2016 establishing a Guideline on Forward Capacity Allocation (FCA GL), together with the Swedish Energy Markets Inspectorate, announces a public consultation on the “Report on the hedging opportunities of the electricity futures market in the Lithuanian bidding zone".

Pursuant to Article 30(8) of the FCA GL, at least every 4 years or on their own initiative, the competent regulatory authorities of the bidding zone border, in cooperation with the European Union Agency for the Cooperation of Energy Regulators (ACER), shall carry out an assessment of risk hedging opportunities in accordance with Article 30(3) to (5) of the FCA GL.

Mainly due to geopolitical reasons, from the beginning of August 2022, relevant structural changes took place in the electricity market (drastic changes in the prices of energy resources). The NERC recognizes that the decision of Finland and Estonia to introduce a long-term transfer financial product between Finland and Estonia from 2023 will significantly improve the opportunities of Lithuanian market participants to hedge against cross-zonal risks. Therefore, it was decided not to introduce other hedging measures in Lithuania in accordance with FCA GL Article 30(5). However, in order to determine how these changes affected the risk hedging opportunities within the Lithuanian bidding zone in accordance with Article 30(3) to (5) of the FCA GL, the NERC has decided to prepare an Evaluation of the electricity futures market hedging opportunities in the Lithuanian bidding zone.

Pursuant to Article 30(3) of the FCA GL, coordinated decisions by national regulatory authorities must be based on an assessment of whether the electricity futures market provides sufficient hedging opportunities in the relevant trading areas.

In accordance with the Regulation, the NERC invites all electricity market participants, regulatory authorities and interested persons to submit comments, suggestions and needs regarding cross-zonal risk hedging opportunities in the Lithuanian price zone by 10 March 2023.

The NERC contact person: Mr. Paulius Blažys, Senior Adviser of the Market Development and Monitoring Division, tel. (8 5) 213 9810, e-mail [email protected].

Opinions and answers to questions in Lithuanian can be submitted to the NERC by mail (Verkių st. 25C-1, Vilnius, LT-08223), by fax (213 5270) or by e-mail: [email protected]. When submitting proposals to the NERC in English, please also submit them to the Swedish Energy Markets Inspectorate, PO Box 155. 631 03 Eskilstuna, Sweden (Dnr. 2021-100254) or by e-mail: [email protected].


Please find public consultation questio​ns here​.

​​Please find Analysis of Electricity Forward Market Hedging Opportunities in Lithuanian Bidding Zone Borders​ here.