Energinet and Svenska kraftnät invite you to a workshop on Article 30 of the FCA

According to Energitilsynet's decision of May 17th 2017 and Energimarknadsinspektionen's decision of April 12th 2017, Energinet and Svenska kraftnät have been asked to ensure sufficient hedging products regarding the bidding zones DK1 and DK2.

It was in relation to this decided in a coordinated ruling between Energitilsynet and Energimarknadsinspektionen that no transmission rights should be imposed on the interconnectors between DK1-SE3 and DK2-SE4.

Energinet and Svenska kraftnät are currently investigating the possibilities of supporting the financial markets. At the current time Energinet and Svenska kraftnät have decided to investigate four options with the purpose of ensuring sufficient hedging opportunities. The options are as follows:

  • Support market maker functions to achieve smaller spreads and greater volume
  • Auction EPADs
  • Auction a combination of EPADs, which would mean a simultaneous buy and sell in different areas
  • Outsource trading of EPADs to a service provider

The options above are currently being analysed in regards to pros, cons, efficiency and legality.

In connection with this ongoing work Energinet and Svenska kraftnät would like to seek further inspiration in the market. We would like to invite market participants to a workshop, where market participants and TSOs can discuss options to support the long term hedging possibilities in the forward markets in an open forum.

As preparation for this day we would like you to consider the following questions:

  • Beside the options above, do you see other options to support long term hedging?
  • What pros and cons do you see in the options above?

It is important to note that the day's purpose is not to discuss the introduction of transmission rights. The purpose is solely to discuss alternative options for supporting the long term hedging possibilities in the financial markets in DK1 and DK2.

You are very welcome to be as creative as possible in regards to the first question. If any new ideas come forward Energinet and Svenska kraftnät will investigate the idea in relation to pros, cons, efficiency and legality.

At this workshop we would like to have as many different viewpoints as possible. To encourage diversity of participants we suggest that participants could be traders, risk managers, market developers or originators who have insights into the Nordic markets. With this consideration in mind you are welcome to participate with more than one person at the workshop.

The day of inspiration will be held on from 10:30 to 15:00 on September 12th, 2017 at Clarion Hotel Copenhagen Airport, Ellehammersvej 20, 1770 Kastrup Denmark.

Please register participants by sending an email with name and title to Randi Kristiansen, rki@energinet.dk, or Jenny Lagerquist, jenny.lagerquist@svk.se, before Thursday the 7th of September.

Materials on current options will be distributed later to registered participants.

For your convenience, relevant materials can be found here:

Energinet and Svenska kraftnät look forward to an exciting and productive discussion.