Core TSOs informal survey on market participants hedging needs (Article 16(2)(a) FCA)

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Closes 31 Dec 2018

Core TSOs informal survey on market participants hedging needs

1. On behalf of which company / association do you fill in this questionnaire? (voluntary)

2. Will you answer the following questions only for some Core CCR bidding zone borders (if so, for which) or in a general matter?

3. Do you agree that hedging on average happens progressively over a period, meaning the closer the delivery, the higher the share (of his consumption and/or generation) that a market participant hedges?

  • If so, how much of your portfolio would you have hedged in total  one year ahead and one month ahead?
  • If not, how would you then characterize the usual hedging behavior of market participants?
  • Based on which criteria would you create a hedging strategy?

4. In case long-term splitting is applied, would you prefer to have fixed percentages as a splitting rule or a fixed MW amount of capacity reserved for monthly auctions?

5. Would it be acceptable if, as result of applying splitting rules, no capacity would be offered in some months, but there would be a larger share of offered capacity for the yearly auction?

6. How would you as a market participant choose to split 100 MW between yearly and monthly LTTR products to best meet the hedging needs in the market? Please justify your choice.

7. What criteria have you applied for your offered LTTR splitting described above? Please describe them in detail and their underlying rationale.

8. At the moment, Core TSOs consider the following indicators as worth to be investigated for the decision making on potential ratios of offered capacities between yearly and monthly auctions:

Offered vs. requested capacity on yearly and monthly timeframes.

  • Is this indicator relevant?

Historical auctioned volumes for proportional splitting the LTTRs between yearly and monthly time

  • Is this indicator relevant?

Seasonality effects.

  • Is this indicator relevant?

9. Do you have any suggestions how Core TSOs can ensure that the hedging needs of market participants are met by the splitting rules?

10. Do you have any other aspects that you would like to make Core TSOs aware of?

11. Thank you

Many thanks for your participation in this survey. Your feedback is highly appreciated and will support us / will be considered when developing a methodology for splitting long term cross-zonal capacities.