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NERC ordered Litgrid AB to take measures to promote the development of the derivatives market

National Energy Regulatory Council (NERC), in accordance with the Commission Regulation (EU) 2016/1719 of 26 September 2016 establishing a Guideline on Forward Capacity Allocation (hereinafter – Regulation), which establishes the guidelines for forward capacity allocation, together with the Swedish Energy Markets Inspectorate, prepared a Report on hedging opportunities of the electricity futures market in the Lithuanian biding zone and obliged the transmission system operator AB “Litgrid" within the deadline set in Article 30 (6) of the Regulation to make sure that other long-term cross-zonal hedging products are made available to support the functioning of wholesale electricity markets as defined in Article 30 (5) (b) of the Regulation and thus promote the operation of wholesale electricity markets, without granting long-term transmission rights (Article 30 (1) of the Regulation.


After the implementation of the adopted decision, in the future it should contribute to the development of the derivatives market and create opportunities for market participants to manage risks more effectively, which would indirectly have a positive impact on end users as well.

Please see the materials of the VERT meeting on 06/27/2023 here.​