Consultation – hedging opportunities in Norwegian bidding zones - reference number 202314137:

Information about the respondent

Name: Click or tap here to enter text.

We consider the information in part 1 to be confidential, and therefore exempted from public disclosure

Yes ☐ No ☐

We consider the information in part 2 to be confidential, and therefore exempted from public disclosure

Yes ☐ No ☐

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Type of market participant:

Select form from the drop-down menu (click here)

If other, please specify: Click or tap here to enter text.

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Physical positions in the power market:

☐ Production

☐ Consumption

☐ Delivery to the end user

☐ Does not have production, consumption or physical delivery obligations

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Active in the following bidding zones:

Buys physical power in

☐ NO1

☐ NO2

☐ NO3

☐ NO4

☐ NO5

Sells physical power in

☐ NO1

☐ NO2

☐ NO3

☐ NO4

☐ NO5

Does not buy/sell power for physical delivery ☐

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We have a need for hedging of power price risk in

☐ NO1

☐ NO2

☐ NO3

☐ NO4

☐ NO5

☐ Needs for cross-zonal risk hedging opportunities

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Purpose of the hedging

☐ Physical power trading (incl. power production and consumption)

☐ Trades across bidding areas

☐ Ensure stable income from power production

☐ Secure power price for consumption at certain level

☐ Secure cash flow to minimize investment risk

☐ Other: Click or tap here to enter text.

☐ Speculation

☐ Both

☐ Other: Click or tap here to enter text.

Assessment of existing possibilities for price hedging of power price risk

Existing hedging opportunities NO1

☐ We do not have any needs for hedging opportunities in this bidding zone

If you do not need hedging opportunities in this bidding zone, you can skip to point 2.2

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Hedging of physical power trading:

☐ We cover our needs for hedging of physical power trading through financial contracts (system price contacts, EPADs) traded on the stock exchange (Nasdaq)

☐ We cover our needs for hedging of physical power trading through financial contracts (system price contacts, EPADs) traded bilaterally

☐ We cover our needs for hedging of physical power trading through power purchase agreements with a fixed price

☐ We cover our needs for hedging of physical power trading through other types of agreements:

Click or tap here to enter text.

☐ We do not hedge the volume for physical power trading that we ideally would hedge. This is due to

☐ Insufficient correlation between the area price and the system price

☐ Illiquid market for system price contracts

☐ Illiquid market for EPAD

☐ Insufficient supply/demand for fixed price agreements

☐ Other: Click or tap here to enter text.

Comment: Click or tap here to enter text.

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Trading in financial power contracts for speculation:

☐ We trade the volume of financial power contracts that we want

☐ We trade a smaller volume of financial power contracts than we would like. This is due to

☐ There is little to gain

☐ There is too much risk

☐ Other: Click or tap here to enter text.

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Existing hedging opportunities NO2

☐ We do not have any needs for hedging opportunities in this bidding zone

If you do not need hedging opportunities in this bidding zone, you can skip to point 2.3

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Hedging of physical power trading:

☐ We cover our needs for hedging of physical power trading through financial contracts (system price contacts, EPADs) traded on the stock exchange (Nasdaq)

☐ We cover our needs for hedging of physical power trading through financial contracts (system price contacts, EPADs) traded bilaterally

☐ We cover our needs for hedging of physical power trading through power purchase agreements with a fixed price

☐ We cover our needs for hedging of physical power trading through other types of agreements:

Click or tap here to enter text.

☐ We do not hedge the volume for physical power trading that we ideally would hedge. This is due to

☐ Insufficient correlation between the area price and the system price

☐ Illiquid market for system price contracts

☐ Illiquid market for EPAD

☐ Insufficient supply/demand for fixed price agreements

☐ Other: Click or tap here to enter text.

Comment: Click or tap here to enter text.

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Trading in financial power contracts for speculation:

☐ We trade the volume of financial power contracts that we want

☐ We trade a smaller volume of financial power contracts than we would like. This is due to

☐ There is little to gain

☐ There is too much risk

☐ Other: Click or tap here to enter text.

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Existing hedging opportunities NO3

☐ We do not have any needs for hedging opportunities in this bidding zone

If you do not need hedging opportunities in this bidding zone, you can skip to point 2.4

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Hedging of physical power trading:

☐ We cover our needs for hedging of physical power trading through financial contracts (system price contacts, EPADs) traded on the stock exchange (Nasdaq)

☐ We cover our needs for hedging of physical power trading through financial contracts (system price contacts, EPADs) traded bilaterally

☐ We cover our needs for hedging of physical power trading through power purchase agreements with a fixed price

☐ We cover our needs for hedging of physical power trading through other types of agreements:

Click or tap here to enter text.

☐ We do not hedge the volume for physical power trading that we ideally would hedge. This is due to

☐ Insufficient correlation between the area price and the system price

☐ Illiquid market for system price contracts

☐ Illiquid market for EPAD

☐ Insufficient supply/demand for fixed price agreements

☐ Other: Click or tap here to enter text.

Comment: Click or tap here to enter text.

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Trading in financial power contracts for speculation:

☐ We trade the volume of financial power contracts that we want

☐ We trade a smaller volume of financial power contracts than we would like. This is due to

☐ There is little to gain

☐ There is too much risk

☐ Other: Click or tap here to enter text.

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Existing hedging opportunities NO4

☐ We do not have any needs for hedging opportunities in this bidding zone

If you do not need hedging opportunities in this bidding zone, you can skip to point 2.5

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Hedging of physical power trading:

☐ We cover our needs for hedging of physical power trading through financial contracts (system price contacts, EPADs) traded on the stock exchange (Nasdaq)

☐ We cover our needs for hedging of physical power trading through financial contracts (system price contacts, EPADs) traded bilaterally

☐ We cover our needs for hedging of physical power trading through power purchase agreements with a fixed price

☐ We cover our needs for hedging of physical power trading through other types of agreements:

Click or tap here to enter text.

☐ We do not hedge the volume for physical power trading that we ideally would hedge. This is due to

☐ Insufficient correlation between the area price and the system price

☐ Illiquid market for system price contracts

☐ Illiquid market for EPAD

☐ Insufficient supply/demand for fixed price agreements

☐ Other: Click or tap here to enter text.

Comment: Click or tap here to enter text.

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Trading in financial power contracts for speculation:

☐ We trade the volume of financial power contracts that we want

☐ We trade a smaller volume of financial power contracts than we would like. This is due to

☐ There is little to gain

☐ There is too much risk

☐ Other: Click or tap here to enter text.

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Existing hedging opportunities NO5

☐ We do not have any needs for hedging opportunities in this bidding zone

If you do not need hedging opportunities in this bidding zone, you can skip to point 3

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Hedging of physical power trading:

☐ We cover our needs for hedging of physical power trading through financial contracts (system price contacts, EPADs) traded on the stock exchange (Nasdaq)

☐ We cover our needs for hedging of physical power trading through financial contracts (system price contacts, EPADs) traded bilaterally

☐ We cover our needs for hedging of physical power trading through power purchase agreements with a fixed price

☐ We cover our needs for hedging of physical power trading through other types of agreements:

Click or tap here to enter text.

☐ We do not hedge the volume for physical power trading that we ideally would hedge. This is due to

☐ Insufficient correlation between the area price and the system price

☐ Illiquid market for system price contracts

☐ Illiquid market for EPAD

☐ Insufficient supply/demand for fixed price agreements

☐ Other: Click or tap here to enter text.

Comment: Click or tap here to enter text.

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Trading in financial power contracts for speculation:

☐ We trade the volume of financial power contracts that we want

☐ We trade a smaller volume of financial power contracts than we would like. This is due to

☐ There is little to gain

☐ There is too much risk

☐ Other: Click or tap here to enter text.

Improving hedging opportunities

If there is a need to improve the opportunities, what measures can improve the situation?

☐ TSO issuers long-term transmission rights

☐ Changes in contract type from EPAD to zonal futures as announced by EEX

☐ TSO auctions EPAD or zonal futures. These auctions can be carried out in the same manner as Swedish pilot project Pilotprojekt: stöd för prissäkring på den svenska elmarknaden | Svenska kraftnät (svk.se)

☐ Support a Market Maker function

☐ Other: Click or tap here to enter text.

Comment: Click or tap here to enter text.