The Netherlands Authority for Consumers and Markets (ACM) invites market participants to take part in a consultation on the basis of the Forward Capacity Allocation Regulation (FCA Regulation) about their needs for instruments with which they are able to hedge against price fluctuations on the electricity market. ACM would like to hear what the needs of market participants are so that it can take these into account in its decision-making process as much as possible.
The consultation questions are about the need for hedging opportunities for (i) cross-zonal risks for the bidding zone border between the Netherlands and Norway (for example by transmission rights) and (ii) the Dutch bidding zone.
Using long-term hedging opportunities such as forwards and futures, market participants are able to hedge against price fluctuations in a bidding zone. Transmission rights offer market participants an opportunity to hedge against price differences between different bidding zones.
In 2021, the FCA Regulation went into force in Norway after it had been included in the Agreement on the European Economic Area (EEA Agreement). Recently, the bidding zone border NO2-NL was also included in the Hansa capacity calculation region. As a result, ACM and its Norwegian counterpart NVE-RME must, on the basis of Article 30 of the FCA Regulation, adopt coordinated decisions for the bidding zone border NO2-NL on whether or not to introduce long-term transmission rights or other products for cross-zonal long-term hedging.
In the Annex below, you will find consultation questions that concern the Dutch bidding zone.
ACM plans to publish the responses to its consultation on its website, provided that you agree to such publication. If you consent to publication of your response to the consultation on ACM’s website, and you believe that your response to the consultation contains data that ACM should treat as confidential, ACM would like to receive two versions of your response: a confidential one and a public one.
What is the deadline for responses to the consultation?
We would like to receive your response to the consultation no later than 3 October 2023.
How can you submit your response to the consultation?
Please include in your response to the consultation case number ACM/16/031317 as a reference. You can submit your response to the consultation by regular mail and/or email.
By regular mail:
The Netherlands Authority for Consumers and Markets (ACM)
c/o Energy Department (DE)
P.O. Box 16326
2500 BH The Hague
Please send your reaction to: ACM-Post [at] acm [punt] nl.